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May 5, 2015

IREDELL COUNTY BOARD OF COMMISSIONERS

PRE-AGENDA MINUTES

May 5, 2015

The Iredell County Board of Commissioners met in pre-agenda session on Tuesday, May

5, 2015, at 5:30 PM, in the Iredell County Government Center (South Wing Conference Room),

200 South Center Street, Statesville, NC.

Board Members Present

Chairman James B. Mallory III

Vice Chairman Marvin Norman

Tommy Bowles

Steve Johnson

Ken Robertson

Staff present: County Manager Ron Smith, County Attorney Bill Pope, Deputy County

Manager Beth Dirks, Finance Director Susan G. Robertson, Public Safety Coordinator David

Saleeby, Attorney Lisa Valdez, and Clerk to the Board Retha Gaither.

CALL TO ORDER by Chairman Mallory.

ADJUSTMENTS OF THE AGENDA: County Manager Ron Smith made the following

adjustments:

Add: Administrative Matters – Memo 6-A

New Business – Request from Town of Mooresville for overlay

Letter from Sheriff

Chairman James Mallory stated the letter from the Sheriff could be discussed in full at the

next meeting with the monthly report from the Inmate Reduction Committee.

Commissioner Steve Johnson stated a particular program (mentioned in a letter only given

to the Commissioners) is in the up-coming budget and if the program continues to exist as is, he

would like someone to appear before the Board to justify the actions of the agency (mentioned in

the letter).

Vice Chairman Marvin Norman asked if this could be discussed during the budget session.

County Manager Ron Smith stated the schedule includes Public Safety on Wednesday,

May 6, during the first budget review session.

PUBLIC HEARINGS

Public Hearing to Consider a Request by Langtree Plantation South, LLC to

Release Jurisdiction to the Town of Mooresville: Planning Director Matthew Todd said this

request has been a long drawn-out process and they are returning for approval. They held a

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May 5, 2015

neighborhood meeting to educate the community on the plans. The Planning office has received

minimal activity after posting the sign advertising the public hearing.

Vice Chairman Marvin Norman asked for assurance that the neighborhood meeting did

actually take place.

Todd said a Planning staff member attended.

Commissioner Johnson asked if all of the concerns of the community were addressed.

Todd stated the main concern was single-family development. Everything points to single

family development.

This will be discussed further during the public hearing.

ADMINISTRATIVE MATTERS

Request from the Public Library to Approve a Four-Year Contract with OverDrive,

Inc. to Provide E-Books: Library Director Steve Messick said this is a request for a four-year

contract with OverDrive, Inc. to provide e-books for the Library. They have been using OverDrive

since 2011 under a four-year contract. OverDrive is the largest company that provides e-books to

libraries. The company provides two things, the e-books and a web site where users can browse

available books, download and check-out with a library card. The contract cost is $7,500 per year

for the first two years and $9,000 per year for the second two years. This is a decrease from $12,000

in the previous contract.

This item was placed on the consent agenda.

Request from Iredell-Statesville Schools to Approve Two Lottery Applications and

BA #27: Finance Director Susan Robertson said Kenny Miller, on behalf of ISS, is ready to submit

two additional lottery applications which will reimburse ISS for projects they have paid from local

funds. The first will be towards the purchase of 85 acres of land on Parktown Road and the second

is reimbursement for the purchase of 9 acres adjacent to Cool Springs Elementary.


Budget Amendment

Fiscal Year 2014-15

BA#27 To record anticipated Lottery proceeds and appropriate the funds to reimburse Iredell-

Statesville Schools for land purchases including 85 acres on Parktertown Road in July,

2013 and 9.9 Acres adjacent to Cool Springs School 4/15/2015. 5/5/2015

Account # General Fund Current Change Amended

104700 457101 Lottery Proceeds - Iredell-Statesville (664,517) (296,740) (961,257)

105700 560004 Iredell-Statesville - Lottery 1,110,432 296,740 1,407,172

Request from Public Safety to Approve BA #28 for Stony Point VFD to Purchase a

Used Fire Engine: Stony Point VFD Chief Scott Abernathy stated this request is to use $30,000

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May 5, 2015

of their appropriated fund balance to purchase a 1999 Freightliner, FL80 model, 4-door

commercial cab with a PTO generator. It has approximately 30,000 miles and is owned by

Monticello Fire Department. It will be the replacement for a 1979 Chevrolet pumper/tanker. The

1979 tanker will then be donated to Iredell Statesville Schools Career Academy to be used for the

high school fire education program.

Commissioner Johnson asked how long the truck could last and the price of a new a truck.

Chief Abernathy said it should last at least ten years. The last new truck they purchased in

2009 was $278,000.

Commissioner Robertson asked why Monticello was selling the truck.

Commissioner Bowles said he understands that Monticello is requesting a new truck and

is wondering if Monticello is operating on an assumption that a new truck will be funded.

Public Safety Director David Saleeby stated Monticello has saved money along with ISO

funds and are not required to appear before the board to purchase trucks. This process is included

in the fire departments spending formula.

This item was place on the consent agenda.

Budget Amendment

Fiscal Year 2014-15

BA# 28 Appropriate Fund Balance and increase appropriation to Stony Point VFD for the

purchase of used Fire Engine from Monticello VFD. 5/5/2015

Account # General Fund Current Change Amended

224880 499500 Appropriated Fund Balance - (30,000) (30,000)

225525 537600 Contracted Fire Services 98,425 30,000 128,425

Request for Approval of the Pre-Agenda Minutes from April 21, 2015: There were no

corrections to the minutes.


Request from Solid Waste for Approval of Waiver of Tipping Fees for Clean Brick

Debris Generated from Demolition at Cool Springs Elementary School: Solid Waste Director

David Lambert stated the demolition is underway and debris is ready to be moved. Solid Waste is

planning to build roads around some of the existing phases of the landfill and could use the

discarded material for a base on the roads. Normal cost of such material is $14-$19 a ton.

Chairman James Mallory feels there may be citizens who want a “piece” of the old school.

The PTO could have a fundraiser selling bits of pieces of memorabilia of the school.


UNFINISHED BUSINESS

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May 5, 2015

Resolution for Senate Bill 369 Concerning the Allocation of Sales Tax: Chairman James

Mallory and Commissioner Ken Robertson suggested a few changes.

Commissioner Steve Johnson said the changes are minor and do not alter the subsistence

of the resolution. He stated the attorneys did a great job crafting the resolution.

NEW BUSINESS

Proposed Text Amendment to Create an Overlay to Define Provisions for Residential

Development along the Cornelius Road Corridor: Planning Director Matthew Todd distributed

a map illustrating the MGO and the proposed overlay by Mooresville which is basically 1000 feet

from the center line of Cornelius Road. The only additional regulation in their overlay is that

residential development must be one acre. This is encouraging the area to be a commercial

corridor. Mooresville has included areas outside of the jurisdiction, from a zoning standpoint. They

are making preparations in the event a parcel owner wants water and sewer that is already in the

overlay then the minimum lot size is at least 1 acre.

Commissioner Mallory asked why this would extend across Lake Norman into a residential

area.

Todd said he had not received an answer.

Smith asked to clarify if they could establish an overlay and then as they annex bring it

under that particular zoning or is it after it is annexed or under ETJ.

Todd said it would be part of the process and one of those aspects would be officially

established in the overlay and assigning whatever zoning might be relevant.

Chairman Mallory asked if the Board needs to take action to rezone anything to preserve

what is done under the County’s zoning.

Todd said requirements were put into place with the MGO which mirrors some of

Mooresville’s requirements. It all depends if someone wants water/sewer then they would have to

go into Mooresville’s jurisdiction. At that time the one acre minimum applies.

Commissioner Ken Robertson stated he would like a little more explanation on why

Mooresville wanted the areas west of the interstate and how it facilitates getting an exit.

Commissioner Steve Johnson expressed his concerns about the development of residential

subdivisions along that corridor. However, he feels the integrity of the overlay should be

maintained by this Board and that Mooresville show reluctance to extend water and sewer to that

area.

MOTION by Vice Chairman Marvin Norman to enter into Closed Session at 6:20 PM.

VOTING: Ayes – 5; Nays – 0

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May 5, 2015

IREDELL COUNTY BOARD OF COMMISSIONERS

REGULAR MINUTES

May 5, 2015

The Iredell County Board of Commissioners met in regular session on Tuesday, May 5,

2015, at 7:00 PM, in the Iredell County Government Center (Commissioners’ Meeting Room),

200 South Center Street, Statesville, NC.

Board Members Present

Chairman James B. Mallory III

Vice Chairman Marvin Norman

Tommy Bowles

Steve Johnson

Ken Robertson

Staff present: County Manager Ron Smith, County Attorney Bill Pope, Deputy County

Manager Beth Dirks, Finance Director Susan G. Robertson, Public Safety Coordinator David

Saleeby, Attorney Lisa Valdez, and Clerk to the Board Retha Gaither.

CALL TO ORDER by Chairman James Mallory.

INVOCATION by Chairman Mallory.

PLEDGE OF ALLEGIANCE led by Chairman Mallory.

ADJUSTMENTS OF THE AGENDA: County Manager Ron Smith made the following

adjustments to the agenda:

Add: Administrative Matters – Memo 6-A – Request from Iredell Statesville Schools to

Solid Waste to Waive the Tipping Fees for Cool Springs Elementary.

Action needed for the Closed Session prior to the meeting.

MOTION by Vice Chairman Norman to adopt the agenda with the adjustments.


PRESENTATION OF SPECIAL RECOGNITIONS & AWARDS

(None)

APPOINTMENTS BEFORE THE BOARD

(None)

PUBLIC HEARINGS

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May 5, 2015

Chairman Mallory declared the meeting into a public hearing.

Public Hearing for the Consideration of an Economic Development Incentive for

Project Decker: Mooresville-South Iredell Economic Director Rob Carney addressed the Board

to present information concerning Project Decker. This is an aerospace company that is working

to engineer and design a fully composite aircraft with the long term goal to make and manufacture

aircraft for the commercial market. Iredell County had to compete against locations in Texas and

Oregon. They have chosen Mooresville in Iredell County. The first phase entails the next three

years. The company will invest over $6 million in new tax investment in facility, machinery, and

equipment purchases. The company will hire 58 full time engineers and machinists paying wages

well over $60,000 per worker. This request is for an incentive to be granted to Project Decker for

80% of increase tax value to be paid back for a period of five years. Based on an incentive ranging

between $3 million and $6 million investment, that incentive equates to a maximum incentive

amount between $58,000 and $116,400 to be paid out in the next five years. These exact incentive

amounts are adjusted to reflect exact new tax investment made by the company and as always the

County is not obligated to make any incentive payments until the company has fulfilled all

commitments and increased the County tax value by the promised amounts.

No one from the audience wished to speak.

Chairman Mallory closed the public hearing.

MOTION by Commissioner Ken Robertson to approve the economic incentive ranging

between $58,200 and $116,400 over a five year period based on the company’s investment ranging

between $3 million and $6 million and contingent upon a contract being executed within 180 days.



Public Hearing to Consider a Request from Tomlin Mill Family, LLC to Rezone 9.93

Acres from RA to HB: Planning Director Matthew Todd said this is a rezoning request that is

near the interchange of Tomlin Mill Road and I-77. They are requesting to rezone from RA to

straight HB – Highway Business. Staff supports this request based on the close proximity to the

highway interchange commercial designation in the 2030 Horizon Plan and it’s close proximity to

other commercially zoned properties. Potential traffic impact should not exceed the road capacity.

The Planning Board voted 7 to 1, with one concern of agricultural land being lost.

John Lundy of 199 Coite Lane, stated his property joins the property in question. He said

he was speaking on behalf of Malcom Thompson who was physically unable to attend. They feel

this property should be rezoned because all of the other property is already highway business.

The public hearing was closed.

MOTION by Commissioner Ken Robertson to recommend in favor of the request and

make a finding that though the request is inconsistent with the 2030 Horizon Plan, said approval

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May 5, 2015

is reasonable and in the public interest because it is consistent with previous rezoning requests in

the area, the parcel is in close proximity to the interstate and the Tomlin Mill Road Interchange,

and traffic will not come close to capacity.


IREDELL COUNTY DEVELOPMENT SERVICES

PLANNING DIVISION

PLANNING STAFF REPORT

REZONING CASE # 1504-2

STAFF PROJECT CONTACT: Jake Lowman

EXPLANATION OF THE REQUEST

This is a request to rezone 9.93 acres on Woodpecker Road in Olin from RA, Residential Agricultural

to HB, Highway Business. This is a straight rezoning request and therefore, all uses as described in

the Table of Permitted and Special Uses (Section 2.21) in the Land Development Code will be

allowed. No conditions are proposed in the request.

OWNER/APPLICANT

OWNER: Tomlin Mill Family, LLC

APPLICANT: Malcolm Thompson

PROPERTY INFORMATION

LOCATION:

Tomlin Mill Road; more specifically identified as PIN

4749957350.000

DIRECTIONS:

I – 77 north to Tomlin Mill Road; West on Tomlin Mill

Road; right on Woodpecker Road; site is located

adjacent to 115 Woodpecker Road.

SURROUNDING LAND USE:

The general area is agricultural and low density

residential. A service station and veterinarian

hospital are in close proximity.

SIZE:

The property is approximately 9.93 acres.

EXISTING LAND USE: The property is vacant.

ZONING HISTORY: This property has been zoned RA since countywide zoning. Several properties

in this interchange area have been rezoned to HB & GB in recent years.

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May 5, 2015

OTHER JURISDICTIONAL INFORMATION: This property is not located within another jurisdictions long

range planning area.

OTHER SITE CHARACTERISTICS: This property is not located in a flood hazard area or Watershed.

IMPACTS ON LOCAL INFRASTRUCTURE AND/OR FACILITES

TRAFFIC: The closest traffic count is on Tomlin Mill Road near the Lowes Distribution Center and

had a 2012 count of 3,300 vehicle trips per day. The capacity for this section of Tomlin Mill Road

is 11,000 vehicles per day.

SCHOOLS: Because this is a commercial rezoning, there should be no implications on local schools.

FIRE MARSHAL: This proposal has been reviewed by the Fire Marshal. They have no issues with the

proposal.

EMS: This proposal has been reviewed by the EMS Department. They have no issues with the

proposal.

UTILITIES: No public sewer is available to this site and it is served by Iredell Water Corporation.

REQUIRED REVIEWS BY OTHER AGENCIES

LOCAL: The applicant will have to provide a site plan to the Planning Department for review for

non-residential development of the property. Zoning requirements such as parking, landscaping

and buffering will be reviewed at such time.

STATE: Other than building code, there should be no formal state agency review at this time.

FEDERAL: None at this time.

STAFF AND BOARD COMMENTS

STAFF COMMENTS: The 2030 Horizon Plan calls for this general area to be a combination of

Agricultural Residential, which includes rural areas that lie outside of the defined Urban Services

Areas in Iredell County, as well as Highway interchange commercial to take advantage of the

Tomlin Mill Road interchange. Agricultural Residential areas will not be serviced by public or

private water or sanitary sewer services during the planning period. Private uses will be served

by well water and septic systems. The intent of these lands is that they will remain rural in

character. Uses within this area generally should include certain farming operations, accessory

farming uses, single‐family residences, accessory dwelling units, churches, parks, and institutional

uses. Highway Interchange Commercial areas include existing or future commercial, retail, and

service uses located proximate to interstate interchanges on major arterial roadways. The intent

of these lands is to provide for high intensity uses related to travel. Uses within this area generally

should include gas stations, hotel/motels, restaurants, and other highway travel related

businesses. Secondary uses may include retail, office developments, and higher‐density

residential uses.

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May 5, 2015

Other information to consider is that the site is in close proximity to the Lowes Distribution Center,

and multiple properties near the Tomlin Mill Road Interchange have been rezoned to commercial

designations in recent years.

This site is consistent with past approved rezoning requests in the vicinity of the I-77 Tomlin Mill Road

Interchange, and the parcel falls just outside of the Highway Interchange Commercial

designation in the 2030 Horizon Plan. Most of the land that has been rezoned to commercial in

this area has yet to be developed. Potential traffic impacts should not come close to the road

capacity.

The 2030 Horizon Plan identifies the area around the interchange and along the Tomlin Mill Road

corridor to Jennings Road as Highway Interchange Commercial. This particular area is not parcel

specific in the plan, giving flexibility on how large or small of a commercial area will be at this

interchange. Therefore, staff feels that a commercial rezoning of this property is reasonable due

to the proximity of this parcel to other commercial uses, Interstate 77, and the Tomlin Mill Road

interchange.

SITE REVIEW COMMITTEE: David Aman and Dennis Hutchens visited the site with staff on March

18, 2015.

PLANNING BOARD ACTION: On April 1, 2015 the Planning Board held a public meeting to hear

the request. No one spoke against the rezoning. The Planning Board voted 7-1 to recommend

approval of the request with the following motion:

Motion to recommend in favor of the request and make a finding that though the request is

inconsistent with the 2030 Horizon Plan, said approval is reasonable and in the public interest

because it is consistent with previous rezoning

requests in the area and traffic will not come close to capacity.


Public Hearing to Consider a Request by Langtree Plantation South, LLC to Release

Zoning and Subdivision Jurisdiction to the Town of Mooresville: Planning Director Matthew

Todd said this request is a release of zoning and subdivision jurisdiction. The property is

approximately 13.36 acres on Langtree Road and is adjacent to Bridgeport Subdivision. Davidson

Lake Campus is across the road with some additional residential toward the end of Langtree and

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May 5, 2015

toward the interstate. The 2030 Horizon Plan shows the area to be low density residential which

means two units per acre.

Pete Lejasbunde of 192 South Haven in the Bridgeport Subdivision, stated his primary

concern is the reasoning for the release to the Town of Mooresville from Iredell County. The

Bridgeport Subdivision is in Iredell County. He is concerned about future planning, whether they

would receive support from the Town of Mooresville. He doesn’t understand why it is being

released. He stated that if future rezoning were to take place he would have a better audience with

the County than with the Town.

Chairman Mallory stated the developer, Mr. Howard, is here and will be able to clarify the

rationale for the release of ETJ to the Town of Mooresville and the subsequent potential

annexation.

Lejasbunde asked if there is a risk of annexation to the Town of Mooresville.

Chairman Mallory said there would not be a risk for Bridgeport.

Susie Phillips, of 155 Kings Crest Drive, represented her neighborhood. She is on the HOA

Board of Directors. They are questioning giving it over to Mooresville because they have no “say-

so” within the Town and cannot vote within the Town. She also stated concerns about the water

shed.

Commissioner Tommy Bowles stated that citizens do have a voice because the Board of

Commissioners approves two positions on the Mooresville Planning Board ETJ. He also stated

that the item before the Board tonight will not help or hurt annexation. Annexation is not an issue

at the present time.

Phillips concluded that this is not something the neighborhood wants.

Curtis Guise of 121 Claremont Way stated the best thing to happen with this property is

what Mr. Howard is proposing which is two houses per acre. He is concerned about what would

be built on this property if Mr. Howard doesn’t proceed. He would like some type of guarantee

that it would remain two houses per acre.

Todd said Mooresville is not making the request, it is being made by the applicant. In order

to build a development, as he plans, it will need to be released to Mooresville. Curb and gutter is

not allowed in the County. He will be able to build a high-end development under Mooresville’s

jurisdiction. The County will only allow a standard subdivision type road. Mooresville is not

providing water/sewer. Mooresville has some higher restrictions on watershed issues. He could

ask for annexation of his parcel but involuntary annexation is nearly impossible under the current

state statutes.

Chairman Mallory asked if there was a public meeting held.

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Todd said there was a public meeting on January 12, 2015, sponsored by Mr. Howard to

review the proposed development.

Commissioner Bowles questioned if Mr. Howard changed his mind about a residential

development and wanted to build a school, could he do so, by right, under the County’s zoning.

Todd said schools are permitted, by right, in RA zoning, but there are requirements.

Commissioner Bowles clarified that he would only need staff approval and not Planning

Board or Commissioner approval.

Todd said that is correct. One other item that has been mentioned, the assurance of the

proposed housing development is not 100%. However, the County and Town’s plan calls for this

area to stay low density residential. It can change, but would be difficult.

Commissioner Bowles asked if the nine additional units under Mooresville jurisdiction is

considered medium or high density.

Todd said it would drop them to half-acre lot sizes but under the County’s plan it is still

considered low density.

Sarah Greene of 143 Knox View Lane, asked how they could get 13 half-acre lots, with a

road and curbing, on only 13 acres. She is not opposed to the development but would like to see

nice homes on decent size lots. However, she is completely opposed to a school on that property.

Rick Howard, the developer, said this has all been confusing. The County does not have

the proper zoning in place to utilize water, sewer, curb, and guttering. Mooresville does have such

a policy in place. They are not changing the zoning. There is a demand for homes in the $500,000-

$600,000 range. Water and sewer rights have been secured through Aqua. A school will not be

built on this property. Housing will be two units per acre with no major impact on traffic.

Richard Schemone spoke in favor of the development.

Chairman Mallory stated some of the confusion stems from the original stated plan and the

potential change down the road. He asked if there is any contemplation of selling this property to

a third party.

Howard said he is developing and building the roads, water, and sewer. Then they plan to

sell the lots to one developer.

Chairman Mallory clarified that the Howards would retain ownership until the roads,

curb/guttering, water/sewer, and lots are separated then it would be sold to a developer.

Howard said it would be one developer and expects the time line to be approximately 24

months.

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May 5, 2015

Chairman Mallory asked the time frame of Mooresville acting on the ETJ.

Howard said Mooresville has already sent a letter to the County. It is not being rezoned

and should take less than 30 days. It will be single family homes, no condos or apartments.

Commissioner Bowles asked who will own and maintain the retention pond.

Howard said that would be part of the project.

Commissioner Bowles asked if there would be a homeowners association who would be

responsible for maintaining the retention pond.

Howard said yes. He added that Aqua of North Carolina has adequate capacity for

water/sewer and that they provide for all of Langtree. They purchased, from Aqua, the capacity to

service 60 homes but there will only be 26.

Todd said the County ordinance changed in 2011 to become more restrictive in watershed

areas. Some developments, such as Bridgeport, were built prior to these changes.

Commissioner Ken Robertson stated watershed regulations have changed tremendously

since Bridgeport community was built.

Todd said some of the regulations come from the State but the County has made regulations

stemming from storm water issues.

Chairman Mallory closed the public hearing.

MOTION by Commissioner Tommy Bowles to grant the request for release of zoning and

subdivision jurisdiction of the 13.36 acres on Langtree Road to the Town of Mooresville. They

(the applicants) have been convincing that it is consistent with the low density option and the storm

water will be handled properly.


IREDELL COUNTY DEVELOPMENT SERVICES

Planning Division

PLANNING STAFF REPORT

Release of Zoning & Subdivision Jurisdiction

Staff Project Contact: Rebecca Harper

EXPLANATION OF THE REQUEST

Richard Howard, with Langtree Plantation South, LLC, has requested release of the zoning and

subdivision jurisdiction of 13.36 acres on Langtree Road to the Town of Mooresville. The proposed

use of the property is a residential development with a density of two single family homes per acre.

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May 5, 2015

OWNER/APPLICANT

OWNER: Langtree Plantation South, LLC

PO Box 42

Mt. Mourne, NC 28123

PROPERTY INFORMATION

LOCATION: Langtree Road; more specifically identified

as PIN # 4645111190.000.

DIRECTIONS: I-77 south to exit 31 for Langtree Road, turn

right onto Langtree, on the left past Courtland Lane.

SURROUNDING LAND USE: This property is surrounded by

residential uses and the Davidson College Lake

Campus.

SIZE: The property is a total of 13.36 acres.

EXISTING LAND USE: The tract to be released is currently

vacant.

ZONING HISTORY: This property has been zoned RA since county-wide zoning went into effect in

1990.

OTHER JURISDICTIONAL INFORMATION: This property is located approximately a half mile outside

Mooresville’s short range USA boundary. The applicant does not need town services as private

water and sewer are available to the site. The Town Planning staff has submitted a letter of

acknowledgement regarding the request and is in support of the request. This area is identified in

Mooresville’s Comprehensive Land Use Plan as Peninsula Conservation, which is intended for low

density residential development.

OTHER SITE CHARACTERISTICS: This property is located in the Catawba/Lake Norman Critical Area

water supply watershed.

IMPACTS ON LOCAL INFRASTRUCTURE AND/OR FACILITES

TRAFFIC: In 2011, the average number of vehicles per day on this section of Langtree Road was

4,200. The capacity for Langtree Road is 11,000 vehicles per day.

SCHOOLS: This property is located outside of the Mooresville Graded School District.

STAFF COMMENTS

STAFF COMMENTS: This request was set for a public hearing on November 18, 2014. The request

was withdrawn before it was heard with instructions to hold a public input meeting to address

some concerns with the neighboring properties. The public meeting was held on January 12, 2015.

A summary of the meeting is included with the staff report.

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May 5, 2015

From a Planning perspective, this request meets the criteria for release of zoning and subdivision

jurisdiction. The release would generate approximately 9 additional lots in the development

based on the proposed number of homes and those allowed by the County. The Town Planning

staff is in support of this request. The proposed use of the property fits into the future land use plans

for the Town of Mooresville. The 2030 Horizon Plan recommends Low-Density Residential uses for

this area with a maximum density of two units per acre. The Planning staff recommends in favor

of this request.

Chairman Mallory thanked everyone for their participation and reassured that this is the

highest and best use of this property. It will serve to improve property values and will not overly

burden an already crowded area.

The Board recessed for five minutes.

Chairman Mallory called the meeting back to order.

ADMINISTRATIVE MATTERS

The following items were placed on the consent agenda at the 5:30 PM pre-agenda

meeting:

Request from the Public Library to approve a four-year contract with OverDrive, Inc. to

provide E-books.

Request from Iredell-Statesville Schools to approve two lottery applications and BA #27.

Request from Public Safety to Approve BA #28 for Stony Point VFD to purchase a used

fire engine.

Request for approval of the April 21, 2015 minutes.

Request from Solid Waste to waive the tipping fees for clean brick debris generated from

the demolition at Cool Springs Elementary School.

MOTION by Commissioner Steve Johnson to approve the consent agenda.


ANNOUNCEMENTS OF VACANCIES OCCURRING ON BOARD & COMMISSIONS

Troutman Board of Adjustment (1 Announcement)

MOTION by Vice Chairman Marvin Norman to publish this announcement.


APPOINTMENTS TO BOARDS AND COMMISSIONS

I-CARE, Inc. Board of Directors (1 Appointment)

MOTION by Vice Chairman to appoint Heather Griffin.

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May 5, 2015


UNFINISHED BUSINESS

Chairman James Mallory stated there is a request to adopt a resolution in opposition to

Senate Bill 369 which seeks to revise the structure and distribution of sales tax. This is follow-up

from a motion made by Commissioner Johnson during the regular meeting on April 21, 2015.

Commissioner Johnson read the following resolution:

* * * * * RESOLUTION OF IREDELL COUNTY

BOARD OF COMMISSIONERS

WHEREAS, Senators Harry Brown, Brent Jackson, and Ben Clark have filed and sponsored Senate Bill

369, titled “A BILL TO BE ENTITLED AN ACT TO PHASE-IN THE CONVERSION OF THE LOCAL SALES

AND USE TAXES AUTHORIZED UNDER ARTICLES 39, 40, AND 42 TO A STATE SALES AND USE TAX

THAT IS ALLOCATED TO THE COUNTIES AND CITIES ON A PER CAPITA BASIS AS A LOCAL

REVENUE SOURCE,” (“SB 369”); and

WHEREAS, SB 369 seeks to revise Chapter 105 of the North Carolina General Statutes in a manner that

would drastically alter the statutory structure of the collection and distribution of sales tax generated by local

governments throughout the State of North Carolina; and

WHEREAS, since enactment, sales taxes in North Carolina have been a primary funding source for the

municipalities and counties of the State and considered the “property” of those local governments who provide the

resources and infrastructure to generate the sales taxes; and

WHEREAS, historically sales taxes have been distributed on a “point of sale” basis due in large part to the

fairness of the concept that those who pay for the infrastructure supporting sales should be entitled to collect the tax

spawned by their investment; and

WHEREAS, SB 369 has the stated purpose of taking revenues away from the place where they were

generated and redistributing it to counties and municipalities that are less prosperous areas; and

WHEREAS, in doing so the legislation provides a windfall to local governments, who have not provided

the resources and infrastructure necessary to generate significant sales taxes for their local community, by taking it

from the local governments whose communities and budgets bear the physical and fiscal brunt of the costs of

development. In effect, the legislation proposes to socialize sales tax revenues and redistribute them under the guise

of fairness; and

WHEREAS, the taking of an asset statutorily vested in the local governments of North Carolina and

redistributing it on the basis of a currently perceived “fairness” will be financially devastating to Iredell County and

its towns, as well as a majority of counties and municipalities in the State, forcing them to make up the difference by

increasing ad valorem taxes. Gifting the sales tax revenues on a per capita distribution is tantamount to a tax

increase mandated by the Legislature; and

WHEREAS, this legislation not only proposes to strip local governments of a statutorily vested funding

source and mandate it recover those revenues elsewhere, it proposes to further effectively increase County set aside

requirements for public school capital outlays; and

16

May 5, 2015

WHEREAS, despite the text of SB 369 stating the Governor may not reduce or withhold the distribution to

local governments, this legislation will convert the local sales tax to a state sales tax funneling it into the State’s

General Fund, which threatens future distributions to local governments just as has occurred with lottery proceeds,

as well as the beer and wine taxes; and

WHEREAS, ultimately this conversion of the local sales tax to a state sales tax under the guise of

“fairness” is in fact unfair and a fundamental change in the way government is financed in North Carolina.

NOW THEREFORE, be it resolved by the Iredell County Board of Commissioners:

1. That the passing of SB 369 threatens to take over half of a million dollars in sales tax revenue from

Iredell County annually.

2. That the proposed legislation is far from fair, but rather it burdens the citizens of Iredell County and its

municipalities.

3. That the Iredell County Board of Commissioners adamantly opposes SB 369 and any similar

legislation that threatens the status and distribution of local sale and use taxes.

4. It is hereby requested that the local delegation of the North Carolina General Assembly elected to

represent the interests of the citizens of Iredell County and its municipalities vigorously oppose SB 369

and any similar bill filed in the House.

5. The Commissioners shall seek the support of the municipalities of Davidson, Harmony, Love Valley,

Mooresville, Statesville, and Troutman, who all stand to lose local sales tax revenue by the passing of

this legislation, to join in this resolution or adopt similar resolutions.

* * * * *

Chairman Mallory thanked the legal team for their research and crafting of the resolution.

House Bill 589: Chairman Mallory reported that a letter concerning House Bill 589 was

sent to the legislative delegation of the North Carolina General Assembly. This letter stated the

concerns of the unfunded mandate of an additional primary and the undue burden it places on our

electoral system.

PUBLIC COMMENT

(None)

NEW BUSINESS

County Manager Ron Smith said there was a request from the Town of Mooresville to

review an overlay that will be placed on the Cornelius Road corridor. This would limit the size of

residential development to one unit per acre. Initially this will only have an impact on the

jurisdiction within the Town’s ETJ. They are proposing to bring the overlay from the new

connector road, past I-77 and close to Judas Road on the west side of I-77. The areas outside of

the Town’s jurisdiction will not be affected. The Town of Mooresville only needs the

acknowledgement that the Board of Commissioners are aware of this overlay. No other action is

necessary.

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May 5, 2015

Chairman Mallory acknowledged the receipt of this information and expressed his

appreciation to the Town for sharing their thoughts as things move forward in developing the

connector road and the area.

COUNTY MANAGER’S REPORT

County Manager Ron Smith presented the FY15-16 Budget Message as follows:

In this year of revaluation I found the results to be a good

indicator of where we are overall as a County. Mooresville and South

Iredell have generally seen a resurgence in development and are

experiencing the associated increases in property values. Statesville

and North Iredell continue to see slow-to-no development with very

little overall growth in the tax base. Although our 1.63% increase in

overall county tax base is less than stellar, we fared better than many

NC counties whose reappraised valuations decreased. The end result

is development in South Iredell is continuing to buoy the rest of the

County and keep our overall growth steady.

Even through the recession Iredell County continued to grow

at a fairly high rate. The steady growth identifies an important point,

with new people comes an increase in the need for county services.

From 2000-2015 Iredell County grew by 45,412 people. Between 2000

and 2007, assuming 2007 was the beginning of the recession, the

County grew by 27,061. Since that time we have seen an increase of

18,351. This shows that although the rate slowed with the economy, it

has not slowed by a significant amount.

We have transitioned over the last fifteen years from a

smaller-but-growing mainly rural county to a larger-and-still-growing

urbanizing county. According to the NC Office of State Budget and

Management, Iredell is the 15th largest county in the State. We are

firmly within the second tier of larger counties, with the first tier

including the likes of Mecklenburg, Guilford, Forsyth, and Wake.

This growth and transition is having an effect on the County’s

infrastructure and demands for services, and with what I consider

conservative projections showing that Iredell will grow by another

10,000 people in the next five years those impacts will continue (graph

1).

Development activity in the southern end continues to

flourish. Building permit activity has continued to grow over the last

four years. Graph 2 shows the yearly increases in the number of

permits since 2010. The majority of this construction is residential and

occurs in the Mooresville area.

Commercial and industrial development has also been on the

upswing. As Mooresville continues to expand its utility infrastructure

the County will continue to benefit from strong development activity. However, with growth comes more demand

for public services.

100000

150000

200000

20

00

20

02

20

04

20

06

20

08

20

10

20

12

20

14

20

16

20

18

20

20

Graph 1. Iredell County Population

418 608 493 415 593

1401 1359 1481 1655 1720

0

2000

2010 2011 2012 2013 2014

Graph 2. Building Permits

Commercial Units Residential Units

0

2,000

2010 2011 2012 2013 2014

Graph 3. Net New Jobs Created

New Jobs Job Loss

Net New Jobs

18

May 5, 2015

The two economic development corporations continue to be

successful, adding 880 net new jobs in calendar year 2014, with an

investment of over $54,000,000 (graphs 3 & 4). Although the job

creation is good news, we continue to see sporadic industrial closings,

which take away from the overall impact of the new job creation.

However, through it all job growth has been positive and the

unemployment rate has continued to drop (graph 5).

This development has contributed to the passage of

$131,500,000 in school construction bonds in 2014. The corresponding

tax increase to service this debt will be associated with the FY2016

budget. The tax rate will increase by 4.25 cents this year, with no

additional increases over subsequent years as a result of the referendum. The projects will be completed in phases

and the debt structure and tax rate increase have been structured to need only one increase in this first year. Over

$8,400,000 of the FY2016 budget is dedicated to these projects.

Revenues

As was previously stated, this year’s revaluation did not bring a

major increase in overall tax values. As compared with the last

five revaluations, the 1.63% realized this year is the lowest growth

year since 1995 other than in 2011 when Iredell saw a loss in value

of 2.34% (graph 6). However, it is important to note that the tax

base has grown by 291% since 1995, from $5.7 billion to $21.2

billion.

Most of the growth in value was seen in South Iredell. As

a percentage it was the only area of the County that saw positive

results. Because the bulk of the tax base is in this area even the

small percentage increase equates to a net positive result county-

wide (graph 7).

Over the last year sales tax revenue was up more than

12% over the previous year. Retail sales are trending higher and

have been a balancing factor to the lower growth in revenues

generated from the property tax. Although this is welcome we

generally do not rely on significant increases in the sales tax due

to its unpredictability. We have budgeted for an 11% increase in

FY2016 (graph 8).

Another significant source of income in FY2015 has been

revenue generated through fees and permits associated with new

development. Overall, this source of income was up by 29% and

we anticipate the extension of a sewer trunk line by the Town of

Mooresville and the development of several significant projects in

the upcoming year will drive that number higher yet again.

Expenditures

I am proposing an overall 10.51% increase over last year’s

budget. The largest driver of this increase is the school

construction projects associated with the 2014 bond referendum.

This, in addition to a sizable increase to the capital and operating

budgets of the three school systems; efforts to address employee

compression, retention and recruitment; and an overall increase in

the demand for county services have all been major influences in

the FY2016 budget development. -2.7

-2.1

2.5

-4 -2 0 2 4

North Iredell

Greater Statesville

South Iredell

Graph 7. Growth in Value by Area

$0

$500,000,000

$1,000,000,000

20102011201220132014

Graph 4. New Investment

0.0

10.0

20.0

Graph 5. Local Unemployment Rate

Yearly Avg.

8.13%

22.77%

18.37%

22.83%

-2.34%1.63%

-10.00%0.00%

10.00%20.00%30.00%

1995 1999 2003 2007 2011 2015

Graph 6. Percent Change in Reappraisals

% change

19

May 5, 2015

Iredell County’s budget is dominated by contributions to the three education systems. Five percent of the

overall increase in the budget is due to the bonds. When combined with the growth in the “normal” school

contributions (current expense, recurring capital, and debt)

proposed for the three systems, that increase goes to 6.5% of the

overall growth. Overall, education will comprise 46.62% of the

FY2016 budget. The per pupil funding for both I-SS and MGSD

will increase from $1,433 to $1,495, growing by 4.2%. This equates

to a current expense increase of $1,538,534 for I-SS and $486,790

for MGSD. Overall, I-SS will receive an increase of 5.13%, MGSD

will see growth of 4.21%, and MCC will receive an increase of

3.76%. The total education budget is categorized below in graph 9.

In February 2015 the Board of

Commissioners made the wise decision to assign

$6,107,500 of fund balance to build a facility to house

all of the non-law enforcement public safety

departments. At that same time the Board also

assigned an additional $6,765,725 to the future jail

construction fund, bringing the total to $11,016,655.

These two actions are significant steps toward

addressing the two primary County facility needs. In

the FY2016 budget I propose assigning $1,800,000

toward future capital facility needs to assist the Board

in continuing to fund these, and other, future facility

needs.

Over the last two years the County

employee turnover rate has exceeded 12% per year.

Increased turnover has tracked with an improved

economy and the availability of jobs. It is our goal to keep turnover near 8% and retain experienced county employees.

Notwithstanding the fact that employees are our most valuable resource, the average cost to replace one position is

almost $10,000. With a workforce of almost 1,000 and turnover at 12% this translates to an extremely high cost.

In an effort to lessen the impact of a significant compression issue, I am proposing a 2% salary scale

adjustment. This adjustment is recommended after studying counties, municipalities, and private industry within the

region that tend to lure our employees away. To remain competitive and keep our most valuable resources I

recommend increasing the entire pay scale, which would help us to remain competitive and provide some relief to

compressed salaries. The cost of this adjustment is $895,000.

In addition, I propose we keep our current practice of providing merit increases to employees based on

performance. This is another key factor in addressing our compression problem by rewarding high performers by

moving them up on the pay scale.

An increase in population, activity, and development has also caused the need for new employees. Although

not all of the requested positions have been recommended to the Board I believe there is strong justification for those

that are included in the proposed budget. Key departments requesting new positions include Administration, Finance,

Social Services, Sheriff, Building Standards, ECOM, and EMS. These requests are a direct result of growth and

activity.

Of particular importance is a proposed change in EMS. Two years ago we changed the Statesville EMS Base

from 24 to 12 hour shifts to offer a better service to the public at our busiest base. The next step was to look at the

Mooresville Base. All of the surrounding counties are going to, or currently operate under 12 hour shifts. Our staff

feels certain we will lose paramedics to those counties, as this provides a desirable work schedule for most medics. I

propose that we move to 12 hours this year in all bases except Trinity and Harmony and in FY2017 transition the

remaining two bases if the call volume is there. This would allow us to remain competitive with surrounding counties,

while providing a better service to the public. The overall impact would be the addition of three paramedics.

Three of the four voted-in fire districts; East Alexander, Mt. Mourne, and B&F are requesting increases to

the tax rate in their districts. East Alexander is proposing the increase to address equipment needs, Mt. Mourne for

additional paid staff, and B&F for the purchase of a heavy rescue crash truck.

Fund Balance

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000 Graph 8. Sales Tax Revenues

46%

7%

26%

13%

1%

7%

Graph 9. Breakdown of Proposed Funding to I-SS & MGSD

ISS CurrentExpenseISS Capital

ISS Debt

MGSD CurrentExpenseMGSD Capital

20

May 5, 2015

There are three fund balance assignments I would recommend making in the upcoming fiscal year. At June

30, 2015 we expect the unassigned fund balance to be $8,626,831 or 20.89% of the recommended budget. Through

this budget I propose that the Board assign $492,885 to begin preparing for the 2019 reappraisal, $100,000 for

economic development, and $959,370 for future year jail operations. The last recommendation is based on unspent

funds in both the Sheriff and Jail FY2015 budgets. This money would generally go directly into the unassigned fund

balance. However, if a jail expansion is constructed, at whatever size and scope, operational funds will be needed and

I suggest we begin building that into the budget this year. If approved, the fund balance will be adjusted as shown in

the final recommendation.

Keeping an Eye on the Horizon

As a result of the bond referendum there will be a 4.25 cent tax increase. The debt associated with the

construction projects will be felt most over the next five years. In FY2020 our debt load will reach its maximum as a

result of those projects, at approximately 23% of the County’s operating budget. After 2020 the rate drops

significantly due to other debt retirement and expected increases in the tax base. The needs of the County do not stop

when the debt load is high. Therefore, I feel it is imperative to continue to contribute to future capital projects and

begin planning for increased operational costs associated with new facilities in the event they are realized. That way

it will be possible to move forward with addressing needs without the need to borrow money while also keeping our

unassigned fund balance at 20%.

Revenue Neutral

The revenue-neutral property tax rate is the rate that is estimated to produce revenue for the next fiscal year

equal to the revenue that would have been produced for that year by the current tax rate if no reappraisal had occurred.

To calculate the revenue-neutral tax rate we first determined a rate that would produce revenues equal to those

produced for the current fiscal year and then increased the rate by a growth factor equal to the average annual

percentage increase in the tax base since the last general reappraisal.

Based on this analysis the revenue neutral tax rate, excluding debt for the bond related projects, would be

48.75 cents per $100 in valuation. However, I have not recommended to increase the rate to that amount. Because of

the tax increase due to the bonds, the fact that we have been able to balance the budget while meeting the primary

goals of the Board set forth in the Winter Retreat, and the requested tax increases in three of the four voted-in fire

districts, I do not think an additional increase is warranted.

Recommendation

Based on the information in the preceding message and to complete my obligation under G.S. 195-11, I

recommend that the Board of Commissioners approve the proposed FY2016 budget of $184,928,590. This will

increase the tax rate from 48.5 cents to 52.75 cents per $100 valuation. It is based on a tax base of $21,288,600,000

with a collection rate of 98.25%. The fund balance on June 30, 2015 is estimated to be $36,974,576 which is 20% of

the recommended budget.

Respectfully Submitted,

Ron Smith

County Manager

Chairman Mallory thanked the County Manager along with the extended management team

and staff for the hard work in assembling this budget package.

CLOSED SESSION

A Closed Session was held prior to the 7:00 regular meeting.

MOTION by Commissioner Ken Robertson to call for a public hearing on May 19, 2015,

to consider a tax increment grant.


ADJOURNMENT

21

May 5, 2015

MOTION by Commissioner Steve Johnson to adjourn at 8:31 PM. (The next meeting will

be Tuesday, May 5, 2015, 7:00 PM, in the Commissioners’ Meeting Room, Pre-Agenda

Discussion at 5:30 PM in the South Wing Conference Room, Government Center, 200 South

Center Street, Statesville, NC)


Approval: _____________________ ____________________________________

Clerk to the Board

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