FY 2005-2006 Audit

Young, Miller & Gillespie


Historic Courthouse Committee

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Mitchell County Commissioners
Minutes, Regular Session
January 16, 2007


The Mitchell County Board of Commissioners met in regular session on January 16, 2007 at 6:00 p.m. in the Commissioner’s Conference Room, Administration Building, Bakersville, NC. Those present for the meeting were Phil Byrd, Chairman; Lisa Sparks, Vice-Chairman; Mike Hensley, Member; Patrick Phillips, Member; Jim Saylor, Member; Phil Castro, Interim County Manager and Kathy Young, Clerk to the Board. Also present were Hal Harrison, County Attorney; Mavis Parsley, Finance Officer; Donny Wisor, Reporter with the Mitchell News-Journal; Steve Murphy, Reporter with WKYK/WTOE Radio Station.

  1. CALL TO ORDER – Chairman Byrd called the meeting to order at 6:00 p.m.

    Chairman Byrd - This meeting will be conducted in an orderly fashion. It will be done properly and correctly. I want to make sure the ground rules are laid out very plainly. If there is an out of order in the meeting, I will call the person to order one time. One warning. The second time, if that does occur again you will be asked to leave. If you do not leave voluntarily we will have them escorted and charged with obstructing a public meeting. That is very clear. Beyond any doubt that is the rules. There is no public comment period. Public comment period is required for thirty minutes a month at a regular meeting. We are going to conduct the peoples business orderly and fashionably.

    Mignon Durham – Mr. Byrd there is many people standing in the halls that cannot hear.

    Chairman Byrd – There is one issue that I will address. Lets make sure that door way is clear.

    Ms. Durham – We can’t hear. Why couldn’t this be in the courthouse where the citizens

    Chairman Byrd – Ms. Durham, call to order.

    Ms. Durham – This is a public meeting

    Commissioner Sparks – No madam. This is a Commissioner’s meeting. The public is invited to attend.

    Ms. Durham – The public is invited to attend

    Chairman Byrd – Ms. Durham, that is your one warning.

    Ms. Durham – I don’t need another warning. You need to move the meeting.

    Chairman Byrd – Ms. Durham you are directed to leave.

    Ms. Durham – Mr. Byrd you are out of order.

    Chairman Byrd – Ms. Durham, I am asking you and directing you to voluntarily leave this meeting.

    Ms. Durham – I have every right to be at this meeting and so do these people in this hallway.

    Chairman Byrd – Ms. Durham are telling me that you are not voluntarily leaving this meeting?

    Ms. Durham – No, I am not.

    Chairman Byrd – My I have a Deputy.

    Ms. Durham – Mr. Byrd you are out of order.

    Chairman Byrd – Please escort Ms. Durham out of the meeting. I will call the meeting to order.

    Chief Deputy Street – What do you need?

    Chairman Byrd – Please escort Ms. Durham out of the meeting and charge her with disruption of a public meeting.


    1. Audit for FY 2005-2006 – Sharon Gillespie, from Young, Miller & Gillespie reviewed the Audit for FY 2005-2006 (a copy of the Audit is hereby attached and becomes a part of the minutes). Ms. Gillespie referred to page 4, paragraph 3 of the Independent Auditors report. In this paragraph it tells you passed your audit. She referred the Board to the Balance Sheet on page 16. The Balance Sheet shows what you own and what you owe as of June 30, 2006. In the General Fund the total assets were $7.9 million and in the Non-major Governmental Funds, which include the fire departments, 911 and some of the smaller funds had a total $623,000 for a total of $8.5 million. So this is a very strong balance sheet. As far as liabilities and what you owe, you had some payables outstanding. $718,000, deferred revenues of $480,000 which is your tax receivables leaving a total fund balance of $7.3 million. Governmental Standards require that we required the audit in a certain way. In the back you will see individual statements that show you specifically what the fire tax did. What the E-911 fund did. As you go the front of the audit you will see consolidated statements. The Local Government Commission wants you to maintain at least an 8% fund balance. What the LGC is saying there is an 8% fund balance will carry you through about 1 month if your expenses stay in line with what they were the past year. So it looks like you fund balance is 38% and that looks great. We can get through 4 months. That is the way the LGC looks at this. Of course being accountants we have to complete it a little bit. We have to look at some more angles. What we do is after you paid your bills June 30th you were left with almost 6 million dollars in the General Fund. Yes, that is 38% of your fund balance available. But we go a step further. How much of that can you truly spend? How much is accessible to you and much is not earmarked or designated for expenditures. When you look at it from that angle and you see some places in the audit we reference 16% fund balance available. That is the difference. Local Government Commission looks at the whole total and we look at just the dollars nobody has earmarked for anything. Page 17 this is your combined statement of expenditures and revenues and changes in fund balance. It is also known as your Income Statement. This measures one year. Mitchell County had a total profit for the year of $977,337. One of the reasons for the profit is because you have given the Finance Office the leeway to move around funds to ensure you are getting the highest investment earnings, your interest has gone up $200,000 this year. Sales tax – the local sales tax went up about $100,0.000. The main reason for the increase was that expenses were controlled and income went up slightly leaving a profit of the $977,000. On page 57, this is the current tax levy information. Looking at the current year collections percentages, your tax office can really be commended for these percentages. The total levy was collected at 95% with property taxes without the vehicles being collectable at a rate of 96.87%. This is a very strong collection rate. Overall the records again were in excellent shape. We appreciate the opportunity to come and do your audit.

      Commissioner Saylor asked if the fund balance included the $100,000 from the sale of the mental health building.

      Finance Officer Parsley stated that is was on our current budget.

      Commissioner Saylor asked if the $353,000 that is restricted was that included.

      Finance Officer Parsley stated that it is restricted in accounts payable.

      Commissioner Saylor said that really there was more like a 17% fund balance.

      Finance Officer Parsley stated that until the county received some type of release that would stay as a restricted accounts payable.

      Commissioner Sparks referenced page 13 of the audit. She stated that one of the concerns she has is the total of 59% of the fund balance has been appropriated for these future expenditures.

      Mrs. Gillespie stated that it took $3,100,000 to balance the 2006-2007 budget, so that is the 59%.

      Chairman Byrd thanked Young, Miller & Gillespie for their presentation.


    1. Contract with Young, Miller & Gillespie – Commissioner Sparks moved to approve the Contract with Young, Miller & Gillespie (a copy is hereby attached and becomes a part of the minutes). Commissioner Phillips seconded the motion and it carried unanimously.

    2. Revaluation – Attorney Hise discussed the upcoming revaluation with the Board. He stated that he had talked extensively with Michael Brown from the Department of Revenue and he suggested that Mitchell County contract for its reval.

      By consensus the Board agreed for Attorney Hise to prepare a Request for Proposal and proceed.


    1. Historic Courthouse Committee – Chairman Byrd stated that he felt know was a good time to change the Historic Courthouse Committee. The previous committee has done a good job and had a lot of work done. Daniel Barron has agreed to serve as the chairman of the committee.

      Commissioner Saylor asked why the committee was being changed.

      Chairman Byrd stated that the new committee better represents the Board of Commissioners. The new committee is basically the first committee that was established before the old board changed it.

      Commissioner Saylor said the original committee accomplished nothing and it was disbanded because of that. He stated he couldn’t see fixing something if it wasn’t broken. Commissioner Saylor said he wasn’t questioned or informed about changing this. He asked if this was not a five-member board.

      Chairman Byrd stated that yes it certainly was. He stated that he had gotten this information out this afternoon after all the members had agreed to serve.

      Commissioner Hensley stated that he served on the second committee and he was there when Chairman Byrd told Dr. Bonamino that he was doing an excellent job on the committee. He stated that he felt this was personal. Commissioner Hensley said he felt the committee was too big and that too many personal things come into the actions of the Board from the first meeting on. He stated that it was no reflection on anyone on the new committee, but he would like to ask any member of the current committee if they object to that.

      Chairman Byrd said that he felt the Board needed to discuss the people on the new committee.

      Commissioner Hensley moved to appoint any member that was removed from the committee be added to the new committee. Commissioner Saylor seconded the motion. Commissioner Saylor stated he did not like to see a committee as big as this one, it will never accomplish anything. The motion failed by a vote of 2 to 3. Commissioners Byrd, Sparks and Phillips opposed the motion.

      Don Baucom called for point of order because Chairman Byrd didn’t call for discussion after the second of the motion.

      Chairman Byrd called Mr. Baucom to order.

      Commissioner Hensley stated Mr. Baucom was 100% right.

      Chairman Byrd explained he was calling Mr. Baucom to order, because he did not have the authority to call point of order. It is for the Board.

      Commissioner Hensley called for point of order.

      Chairman Byrd called for discussion.

      Commissioner Hensley stated he would like to see it go back to the original committee size. He said that this was no reflection on the proposed committee members. Commissioner Hensley stated that the current committee has accomplished a lot and could forge ahead and accomplish much, much more.

      Chairman Byrd stated that the vote had already been taken.

      Commission Saylor stated his discussion was that he would not be party to communism and he was excusing himself from the remainder of the meeting.

      Chairman Byrd informed Commissioner Saylor that the Board had to approve him being excused from the meeting.

      Commissioner Hensley moved to allow Commissioner Saylor to be excused from the meeting. Chairman Byrd and Commissioner Hensley voted in favor of the motion. Commissioners Sparks and Phillips opposed the motion.

      Commissioner Saylor left the meeting at 6:40 p.m.

      Commissioner Hensley resigned from the Historic Courthouse committee and asked to be excused from the meeting.

      Commissioner Hensley moved to allow himself to be excused from the meeting. Commissioner Sparks seconded the motion and it carried unanimously.

      Chairman Byrd excused Commissioner Hensley from the meeting.

      Commissioner Hensley left the meeting at 6:42 p.m.

      Vinny Bonamino stated the wanted to thank the committee for serving while he was chairman.

      Chairman Byrd informed Mr. Bonamino the Board was going to finish the vote.

      Vinny Bonamino interrupted Chairman Byrd correcting his title to Dr. Vinny Bonamino and continued to thank the committee that had worked so diligently to get what was done on the courthouse accomplished. He thanked Chairman Byrd for being a public liar and Commissioner Phillips both.

      Chairman Byrd called Mr. Bonamino to order.

      Commissioner Sparks moved to appoint George Wilson, Harper Wilson, Bruce Ledford, Florence Berryhill, Ron McKinney, Daniel Barron, Wayne Hall, Reid Duncan, Inez McRae, Ralph Snyder, Fred Pitman, Dorothy Campbell, Libby McKinney and Dr. Suzanne Owens to the Historic Courthouse Committee. Commissioner Phillips seconded the motion and it carried unanimously.

  5. ADJOURNMENT – Commissioner Sparks moved to adjourn the meeting. Commissioner Phillips seconded the motion and it carried unanimously.

    The meeting adjourned at 6:46 p.m.


Phil Byrd, Chairman

Lisa Sparks, Vice-Chairman

Mike Hensley, Member

Patrick Phillips, Member

Jim Saylor, Member


Kathy Young, Clerk to the Board