The Personnel and Finance Committee of Spartanburg County Council met on Monday, March 19, 2001 in Conference Room Two of the County Administrative Office Building. In compliance with the Freedom of Information Act, notice of this meeting was provided in advance to the local news media and other interested parties. The following were in attendance: Honorable Ken Huckaby, Chairman; Honorables David Britt and Johnnye Code Stewart, Committee Members; along with Karen Floyd, Jeff Horton; Rock Adams and Frank Nutt; Council members. Also attending were James K. Hartmann, County Administrator; Bill Dennis, Deputy County Administrator; Glenn Breed, Assistant County Administrator; Chris Story, Assistant County Administrator; and Roy McBee Smith, County Attorney.

1. Chairman Huckaby called the meeting to order.

1. Mr. Randy Thomas appeared to review County Audit Management Letter. First two pages are required communication. The recommendations start on page three. Several areas were noted as opportunities for strengthening internal controls and operating efficiencies. No Action Taken.
2. Mr. Randy Thomas appeared to discuss recommendations pursuant to the property tax audit. Chairman Floyd expressed expectation that she does not want to see the same items on the report in years to come. Sarah Broyles, County Auditor, responded to the Spartanburg County Special Procedures Audit 2000 Property Tax Levy. No Action Taken.
3. Mr. Bill Dennis updated Council on the process being recommended for negotiating the cable contract. In February, Council authorized negotiation to merge six contracts into one contract by December 1, 2001. Mr. Dennis met with Legislative Delegation to outline process to be followed. He had a very good discussion with them and explained to them the county has no control over rates. The authority on the cable rates rests with the FCC. They are designing process to include Public Forums and negotiations with Charter coming up with a draft agreement in August. The first reading to be held in September, hearing and second reading in October, and the third reading in November, 2001. The forums will be held throughout the county to raise understanding of where authority lies. Mr. Story and Mr. Dennis will schedule the meetings. Council will be invited to attend.
4. Mr. Bill Dennis addressed the Westview Fairforest Fire District request to appear before Council concerning the referendum held in1997 and the resulting millage problems encountered. In 1997, Westview-Fairforest Fire District held a Referendum during the General Election, to increase Millage Rate from 12 Mills to 18 Mills right before Reassessment. The Reassessment changed everything. The millage rate was rolled back. It didn’t generate the revenue they expected. Administration recommends approving request to increase from 16.8 to 18 mills. Motion to approve Administration’s request by Mr. Britt. Motion seconded by Ms. Stewart and carried.
5. Mr. Hartmann addressed Approval of Memorandum of Understanding between Spartanburg County and Spartanburg Technical College – Re: Dent Building. Mr. Hartmann and Spartanburg Tech came up with an agreement which allows for a six year lease at $1.00 per year. Option years seven and eight would be $3/sf per year. Option years nine and ten would be renegotiated. The cost we would cover would be operational cost for the facilities. There is a small upfitting cost, but this pales in comparison to rent escalation we would be facing if we tried to stay where we were or move elsewhere. Community and Economic Development, Roads and Bridges, and Parks and Recreation will move to the Dent Building. Motion to approve Administration’s Recommendation by Mr. Britt. Motion seconded by Ms.Stewart and carried.
6. Mr. Chris Story presented follow-up information concerning a local option sales tax. Data to be compiled and confirmed within next week. Chairman Floyd stated to change title to "Rollback Property Tax". Currently, a $150,000 home in an unincorporated area of the county at the current rate would generate a tax of $306. This amount would be reduced in the form of a credit by $148 to $171 against county millage. Currently, a $150,000 home in Municipality would have a city tax of $582. The credit against the city tax would be $310.53. This property owner would also receive the credit against county tax. Based on latest estimates, the net additional general revenue to the county would be $4.7 million. The impact on vehicles would be a $15,000 vehicle in an unincorporated area of the county would receive a credit of $46. Somewhere between 15%-20% of total revenue would be provided by Nonproperty Owners. The local option sales tax could be removed by vote of any council. Motion made by Mr. Huckaby to offer a referendum for first reading by title only today. Motion seconded by Mr. Britt and carried.
7. Updated financial information was received as information only.

Meeting adjourned.