7-30-14

I am adding a news story to this blog that was published by the Morganton News Herald on June 17, 2014. The article attempts to explain the operation of a local 501c3 non-profit agency and the manner in which public taxpayer dollars are being used to pay at least one salary, and allow a "volunteer" to receive health insurance for activities that amount to 19 hours a week, while in reality information has been provided to the IRS stating this person only devotes 10 hours a week to the volunteer position. In addition, agency owned vehicles are driven as if they are the personal property of the volunteer, and gasoline and other expenses are paid for using taxpayer money while the organization has established "by-laws" that state "Officers using agency owned vehicles SHALL buy their own gasoline and oil" Public records show an average gasoline expense of about $700 dollars each month. In addition, this article states a current Burke County Commissioner has no problem with allowing taxpayer dollars to used or misused in this reckless manner.

See Below:
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Board shows support for county REACT; Documentation explains director’s part-time salary

  
Posted: Monday, June 16, 2014 7:29 pm

BY SHARON MCBRAYER smcbrayer@morganton.com

The Burke County Board of Commissioners made it clear during a recent meeting: They support REACT not only in the organization’s mission but with money, too.

REACT is a mostly volunteer organization that provides traffic control, communications, security and food and water to rescuers during emergencies.

The county commissioners had an item on its agenda for a budget workshop to talk about REACT’s budget. Commissioners said they had received a lot of phone calls that questioned the organization and its administrator.

Commission Chairman Johnnie Carswell quickly cleared the air during the June 3 meeting, saying it was time to get answers to questions that were being asked by some folks in the community. He asked REACT President Terry Houston to clear things up for them about his salary and whether the organization’s bylaws allow him to get paid.

Houston said in 2007, REACT approached the county commissioners about a part-time paid employee. Meanwhile, Houston submitted his name as chief and was chosen by the REACT board of directors.

In 2008, call volumes for the organization had grown and it received more funding. The attorney for the organization said it was OK to have a part-time paid employee, Houston told commissioners.

Carswell asked Houston if the organization’s bylaws allow for a part-time employee. Houston said it does according to the attorney for REACT.

Houston told commissioners he works 19 hours a week for $250 a week. He said there are no full-time employees with the organization. Volunteers receive $2 for emergency calls and $1 for planned events.

According to minutes from REACT’s board meeting on May 20, 2007, a proposal for a part-time paid staff member was presented to the board. The minutes say the position will allow time to research grants, do marketing, day calls and extended calls, attend meetings and other events. 

The minutes say a request for additional funding from the town of Valdese and funding from the city of Morganton would be made. The organization also was requesting additional funding from the county. The funding for the position was $10,000.

Burke County Manager Bryan Steen said the county’s funding does not pay for the part-time staff member position. Steen said REACT gives a report on how it spends county money.

On June 3, 2007, the REACT board held a special meeting to approve an employment contract for a part-time staff member, according to minutes from the meeting. Terry Houston held the position.

During a June 22, 2008 board meeting, the REACT board of directors allowed Houston to remain and agreed to pay him $250 each week and his health insurance be paid at $152.07 a month, according to the minutes.

The group has requested $50,000 from Burke County in the 2014-15 budget due to higher overhead for REACT’s new station and its three-bay garage it uses to house its equipment, according to a letter from the organization to the county. REACT also needs more VIPER radios, the letter says.

REACT’s budget for 2013-14 is $69,192.

In 2013, the group answered 444 calls, which equaled 4,220.8 man-hours, according to the letter from REACT to the county.

The county is recommending the organization receive $42,000. The county gave REACT $35,000 in this year’s budget, according to budget information from Burke County. 

In addition to the county, REACT gets money from the city of Morganton, the towns of Valdese, Drexel, Rutherford College, Connelly Springs and Hildebran, as well as the United Way. It also receives private donations and holds fundraisers to support the organization, according to information from the county.

The group has its organization charter through REACT International. Burke County REACT’s board of directors determines how the money it receives is used, Houston said.

Commissioner Wayne Abele said he doesn’t have a problem with Houston receiving a salary because the organization saves the county money.

“I don’t know why there’s such an issue with this,” Abele said. He said all organization directors get compensation. Abele said the same person many of the commissioners have received phone calls from is beating up on REACT.

“They have an opinion about everything in the county,” Abele said about the person.

Carswell said the county’s contract with REACT has been met. Houston delivered papers to the county on everything it requested or about which commissioners had questions.


“We have nothing to hide,” Houston said.
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Additional Comments---

I think this "fairy tale" is still important because the taxpayers in Burke County have little to no understanding of what "REACT" is, but taxpayers and voters need to know about this as it affects them and the current property tax increase all taxpayers must pay of .68 cents per hundred which was voted on and approved all at once, instead of gradually over a period of years. 

To date, this organization has DENIED requests from the public and the News Herald to have access to tax returns. For those of you unfamiliar with a non-profit entity, the '990' tax return specifically states in writing in the first page, "Open to Public Inspection" in the previous news story you read that "We have nothing to hide" if that is true, why have these "PUBLIC" tax returns been kept in secret ?

If you do the math, you will see this "volunteer" / "employee" receives an average of $38 dollars an hour to be Chief, while many deserving people continue to try and find a way to put food on their table, and clothes on their children's back. 

Why would our elected officials see fit to allow this injustice by allowing a volunteer to receive an excessive amount of money when the position should be 'NON-PAID' and help the community instead of taking money from needy people.

Is it fair for taxpayers to fund this cost, and have no knowledge as to what they or (we) are buying for $ 42,000 dollars a year ?

If most of the Volunteer Fire Chiefs can 'volunteer' in their particular part of Burke County and accept NO compensation, why then is an agency that is not required or mandated choosing to allow such excessive amounts of public taxpayer dollars to be contributed to allow a "volunteer" to be in effect an "employee"?

My hope is more taxpayers and voters will realize that the current members up for re-election on the Burke County Board of Commissioners have served....LONG ENOUGH....and in order to regain some common sense and fix the runaway spending, voters must take this information into consideration this November when selecting TWO members for the next Four Years on the Burke County Board of Commissioners.

We taxpayers and voters deserve better, consider needed change this year and end the LONG career of the TWO members up for re-election. With enough people voting, we can make a difference!