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04-17-2023 Agenda Packet BOCPERSON COUNTY BOARD OF COUNTY COMMISSIONERS MEETING AGENDA 304 South Morgan Street, Room 215 Roxboro, NC 27573-5245 336-597-1720 Fax 336-599-1609 April 17, 2023 9:00am This meeting will convene in Room 215 of the County Office Building. CALL TO ORDER………………………………………………….. Chairman Powell INVOCATION PLEDGE OF ALLEGIANCE DISCUSSION/ADJUSTMENT/APPROVAL OF AGENDA RECOGNITION ITEM #1 (pgs. 3-9) Herb Stout Award Presentation ……………………………………. Katherine Cathey INFORMAL COMMENTS The Person County Board of Commissioners established a 10-minute segment which is open for informal comments and/or questions from citizens of this county on issues, other than those issues for which a public hearing has been scheduled. The time will be divided equally among those wishing to comment. It is requested that any person who wishes to address the Board, register with the Clerk to the Board prior to the meeting. 1 ITEM #2 DISCUSSION/ADJUSTMENT/APPROVAL OF CONSENT AGENDA A.Approval of Minutes of April 3, 2023 (pgs. 10-31),B.Budget Amendment #18 (pgs. 32-33),C.Audit Contract for Fiscal Year 2023 (pgs. 34-50), andD.Resolution to Establish Materiality Threshold for Recognition of Leases under GASB Statement No. 87 & Subscription-Based Information Technology Arrangements (SBITAs) Under GASB Statement No. 96 (pgs. 51-52) NEW BUSINESS: ITEM #3 (pgs. 53-63) Classification and Pay Study Update ………………………………….. Sonya Carver ITEM #4 (pg. 64) Phone System Transition ……………………………………………….. Chris Puryear ITEM #5 (pgs. 65-93) FY 2024-2028 Recommended Capital Improvement Plan ……….. Katherine Cathey & Amy Wehrenberg ITEM #6 (pgs. 94-101) Appointments to Boards and Committees …………………………… Brenda Reaves CHAIRMAN’S REPORT MANAGER’S REPORT COMMISSIONER REPORTS/COMMENTS CLOSED SESSION #1 A motion to enter into Closed Session per General Statute 143-318.11(a)(6) for the purpose to discuss personnel with the following individuals permitted to attend: County Manager Katherine Cathey and Clerk to the Board Brenda Reaves Note: All Items on the Agenda are for Discussion and Action as deemed appropriate by the Board. 2 AGENDA ABSTRACT Meeting Date: April 17, 2023 Agenda Title: Herb Stout Award Presentation Summary of Information: Last month, Person County GIS Director Sallie Vaughn was honored at the 2023 North Carolina Geographic Information Systems Conference with the G. Herbert Stout Award. The award recognizes a city, town or county for a GIS application that benefits the organization by improving efficiency, reducing costs, and increasing productivity. Person County’s Road Sign Work Order Solution received an award. Tim Johnson, NC Geographic Information Officer with the Center for Geographic Information and Analysis, NC Department of Information Technology (NCDIT), will present the award to Ms. Vaughn. The attached NCDIT press release and award application provide additional information. Recommended Action: Receive the presentation. Submitted By: Katherine M. Cathey, County Manager 3 Road Sign Work Order Solution, Person County Introduction When road name signs need to be repaired or replaced, the Person County General Services (GS) and the City of Roxboro Public Works (PW) Departments are responsible for performing that work. This project sought to improve the reporting mechanism, streamline workflows, and simplify procedures to reduce duplicated effort and increase communication with citizens. Purpose Road sign issues are reported by phone, e‐mail, online form, or by speaking directly to staff from a variety of departments. Most, of these issues are input to a tabular work order system used to manage work orders for buildings, grounds, and vehicle maintenance. Once entered, a work order cannot be viewed or tracked by anyone except the administrative assistant who is also responsible for staff assignment, communicating the specifics of the order, and updating orders once she has been notified that the work is complete. Important detail can be lost during this process, including the location of the road sign issue. Thus, road signs were being placed in the wrong location and with the wrong road name or state road number. In other instances, two staff members would try to repair the same sign, resulting in a duplication of effort. Often, staff receive requests from citizens about the status of their road sign issue report, resulting in increased communication to find the responsible person. On a few occasions, we received road sign issue reports for roads and intersections in other parts of the State. All of these issues resulted in a process that was confusing for staff and citizens and very difficult to manage. In the summer of 2022, GS staff approached the GIS Department for a solution to reduce redundancy and implement a workflow that was beneficial for staff and citizens. Implementation First Phase: Stakeholder Needs Assessment We began by examining the existing workflow and noting the needs of each key stakeholder. Administrative staff expressed a need to print a physical copy of completed work orders. Field staff need locations of road signs and turn‐by‐turn directions to get from point A to point B. Others need to be able to quickly answer questions about the status of a work order. Staff outside the GS and PW departments need the ability to point a citizen to an online reporting system or the ability to take such a report over the phone. All stakeholders require official road names on signs throughout the City and County. Second Phase: Technology Needs Assessment Next, GIS Department staff met with GS and PW staff to determine technology needs and requirements. All involved staff have an e‐mail address and access to computers, but smart phones were only available 4 to GS Staff. PW staff are set to receive smart phones in an upcoming budget cycle. Therefore, a solution which used a hybrid desktop/mobile deployment would best serve our staff. We met with the IT Technician who developed the work order system to discuss taking over a portion of that system and considered other impacts or unintended consequences. The IT Department was looking to deprecate the work order system in favor of a 3rd party solution, and without adding additional strain on their team or existing software and hardware resources. Third Phase: Solution Selection, Draft Implementation, and Testing GIS Staff identified the ESRI Citizen Problem Reporter solution included in our ESRI contract. Because this solution is an ESRI product, documentation and support is provided and we can deploy high quality products without a developer or additional support from our IT Department. No additional software, hardware, or funding was required for implementation. Based on feedback from the IT Department, we chose to deploy this solution in our ArcGIS Online organization, rather than on in‐house Enterprise. Through careful review of documentation and old‐fashioned trial and error, GIS Department staff were able to fully customize each component included in the ESRI solution. Once a draft solution was completed, testing began by entering “false” road sign issue reports. The false reports were carried through the workflow using desktop computers and smart phones and dealt with on a case‐by‐case basis. The majority of necessary changes involved e‐mail enrichments to include correct information and color‐coded text. Fourth Phase: Final Implementation, Training, and Engagement Once lingering issues of the different solution components were documented and addressed, the solution moved to production and notice was made to the public via County website. All links to previous issue reporting forms were updated to the new solution. Internal work order numbers were reset to zero and GS input any road sign issue backlog that had accumulated during implementation. Staff from the GIS Department personally trained GS staff in a one‐on‐one environment either at their desks or with their smart phones in the field. This level of training was instrumental in gaining full buy‐in from staff who generally do not turn to a computer for answers or assistance. We worked through assigning, cancelling, and completing work orders as well as printing. City staff were comfortable receiving e‐mails generated by the system and have not indicated that additional training is necessary. Field staff quickly understood how to use the solution in ArcGIS Collector or Field Maps, but we did teach them how to generate turn by turn directions. Management staff were shown the work order dashboard. E‐mails have also been sent to staff at regular intervals to ensure they are getting the most out of the solution and citizens continue to be notified by website and newsletter announcements. 5 The Road Sign Work Order solution was deployed to production on October 3rd, 2022 roughly 100 days after the initial request was made. Currently, the solution has roughly 60 road sign issues resulting in 57 unique work orders. Organizational Impact The implementation of the custom, off the shelf Citizen Problem Reporter by ESRI has solved several problems related to road sign issues and work orders in Person County and the City of Roxboro. First, nearly all road sign issues are now reported in a single system, which can be accessed by those with a need to know, including citizens. Second, the solution is configured to only allow reports using official road names, which will reduce the number of misspelled road signs and additional repair work orders. Third, staff can use the solution to view their assigned work orders on a mobile map, get turn by turn directions, and use the map to report any issues encountered during the course of their regular duties. Road sign issues outside the County can no longer be submitted and issues within the City are routed directly to their staff, eliminating extraneous e‐mail communication. At any time, staff with permissions to the Hub site can look up the status of a work order to answer questions from the public or other staff. First responders can rely on road signs to be present at intersections as they traverse the County. Thus far, 3 road sign issues were reviewed by staff and subsequently cancelled because they were repeat reports. In the past, this would have resulted in duplicated effort and expenditures. Each road name blade and lettering costs roughly $75, so this reduction in work duplication has saved $225 in materials thus far, not including the cost of gasoline and staff time. Conclusion In short, numerous organizational and workflow improvements have been made with the implementation of this GIS‐based solution. The Road Sign Issue solution has decreased the amount of staff time require to process and rectify issues with road signs. Road sign issues are being correctly routed to the responsible agency and reports outside our jurisdiction are disallowed. Fewer trips are being made to road intersections and there has been a tangible reduction in redundant supply purchases. Most importantly, road signs issues which are used by first responders, mail, delivery drivers, etc., are being consistently dealt with in an expeditious manner. Finally, this solution provides an open and transparent public portal. Hopefully, citizens will feel confident in reporting road sign issues and understand that local government is working hard to keep road signs present and in good condition. Respectfully Submitted, Sallie Vaughn, GISP, GIS Director Person County, NC 6 FRIDAY, MARCH 31, 2023 - 00:00 Local Government Employees Recognized for Innovative Use of GIS Local government employees from North Carolina were honored earlier this month at the 2023 North Carolina Geographic Information Systems Conference with the G. Herbert Stout Award. RALEIGH Local government employees from North Carolina were honored earlier this month at the 2023 North Carolina Geographic Information Systems Conference with the G. Herbert Stout Award. The award recognizes a city, town or county for a GIS application that benefits the organization by improving efficiency, reducing costs, and increasing productivity. “Herb Stout believed in the power of GIS technology to impact the lives of citizens,” said Tim Johnson, Conference Chair and NC Geographic Information Officer, “He was passionate about the need to gather practitioners from local government and elsewhere at this conference to share information and learn from each other.” This year’s award winners and their projects are as follows: An official website of the State of North Carolina How you know   7 Person County – Road Sign Work Order Solution Person County submitted a 4-phase plan to improve the workflow of repairing road signs. The plan reduced the amount of staff time needed to process reports on road sign issues and complete repairs. The county’s GIS staff utilized the Citizen Problem Reporter tool within their GIS software, already in use by the county. The tool enabled GIS staff to customize reports that would be sent to General Services and Public Works employees to create a work order dashboard. These were sent to field staff automatically by email so the repairs could be made more efficiently. The new work order system has resulted in more issues being correctly routed to the appropriate agency, fewer unnecessary trips and redundant purchases, and expedited road sign repairs reported by first responders, mail and delivery drivers, and private citizens. MapForsyth and the Kernersville Police Department – Forsyth CARES (Community Assistance Registry for Emergency Services) Forsyth CARES allows citizens to voluntarily provide information regarding themselves or a family member who may have special needs so that emergency services and first responders can be made aware in an emergency situation. The data is made available to 911 centers across Forsyth County. Forsyth CARES is a project created as a multi-jurisdictional and multi-agency collaboration that includes: MapForsyth Town of Kernersville (Police, Fire, Information Technology and Communications) Forsyth County Emergency Services (911, EMS, Fire) Forsyth County Sheriff’s Office Forsyth County Communications Department City of Winston-Salem (Police, Fire and Communications) Staff from each of these first responder locations had access to a dashboard developed by MapForsyth, the county’s GIS department. Data regarding cognitive conditions, visual or hearing impairments, 8 known health conditions, medications and a person’s emergency contacts are all available on the dashboard. This information can be relayed to emergency services personnel to assist in de-escalation; issuance of Silver, Amber and Ashanti alerts; finding next of kin; or knowing how to find a missing person based on their known vehicle information, physical characteristics, or favorite frequent places. About the NCGIS Conference and the N.C. Center for Geographic Information and Analysis (NCCGIA) The NCGIS Conference (https://ncgisconference.com/), held every two years, offers opportunities for professionals and students of GIS and computer mapping technology to network and learn about advancements and new applications for GIS software. It is sponsored by the NCCGIA, the N.C. Geographic Coordinating Council, and Carolina URISA. The NCCGIA (/about/boards-commissions/gicc/cgia) is part of the N.C. Department of Information Technology (/homepage). Its mission is to advance the use of GIS technology as a tool for better decision-making in North Carolina. It accomplishes this by coordinating statewide geospatial initiatives through the NC Geographic Information Coordinating Council (NC GICC) (/about/boards-commissions/gicc) resulting in cost-effective ways to create, access, and apply geographic data and technology. CONTACT Jessica Hagins jessica.hagins@nc.gov (mailto:jessica.hagins@nc.gov) 984-920-2728 (tel:984-920-2728) 9 April 3, 2023 1 PERSON COUNTY BOARD OF COMMISSIONERS APRIL 3, 2023 MEMBERS PRESENT OTHERS PRESENT Gordon Powell Katherine M. Cathey, County Manager C. Derrick Sims Brenda B. Reaves, Clerk to the Board Kyle W. Puryear S. Ellis Hankins, County Attorney Charlie Palmer Jason Thomas The Board of Commissioners for the County of Person, North Carolina, met in regular session on Monday, April 3, 2023 at 7:00pm in the Commissioners’ Boardroom 215 in the Person County Office Building located at 304 S. Morgan Street, Roxboro, NC. Chairman Powell called the meeting to order. Chairman Powell asked for a moment of silence in remembrance of former county employee, Gary Latta, who recently passed; he then offered an invocation. Commissioner Thomas led the group in the Pledge of Allegiance. DISCUSSION/ADJUSTMENT/APPROVAL OF AGENDA: Chairman Powell requested a Proclamation on World Autism Awareness Month 2023 to be added to the agenda and recognized immediately following the approval of the agenda. A motion was made by Commissioner Puryear and carried 5-0 to add a Proclamation on World Autism Awareness Month 2023 to the agenda and to approve the agenda as adjusted. RECOGNITION: Chairman Powell read a Proclamation on World Autism Awareness Month 2023 for Board consideration. A motion was made by Vice Chairman Sims and carried 5-0 to adopt a Proclamation on World Autism Awareness Month, as presented. Chairman Powell and commissioners presented the adopted proclamation to Ms. Cindy Martin thanking her for her dedication and efforts for autism awareness in Person County. Ms. Martin acknowledged families present in the audience noting there was an unserved autism population in the county as she welcomed everyone to the Person County Chapter. She praised Maynell Harper at the Person County Senior Center for her community support. 10 April 3, 2023 2 11 April 3, 2023 3 INFORMAL COMMENTS: The following individual appeared before the Board to make informal comments: Person County Sheriff Jason Wilborn provided the Board with an update of his first four months as the Sheriff of Person County; his accomplished included:  Cameras installed upstairs in the Law Enforcement Center,  Special Response Team equipment and uniforms,  Digital Rounds Tracking device,  Patrol deputies uniforms upgraded,  Purchased investigative equipment,  Search and Recovery Team in place with state-of-the-art equipment,  Dive Team consisting of 7 deputies with a pontoon and ATV response units,  Two bloodhounds K-9s purchased,  Refurbished unused ambulance as the Sheriff’s Office Mobile Command Unit,  Firearms Gears for realistic training in Schools, and  Law Enforcement Center landscaping, pressure washing and painting Sheriff Wilborn stated the above list was all completed without any burden on the taxpayers using funds brought in by the efforts of cases seizing evidence from drug dealers. DISCUSSION/ADJUSTMENT/APPROVAL OF CONSENT AGENDA: A motion was made by Commissioner Palmer and carried 5-0 to approve the Consent Agenda with the following items: A. Approval of Minutes of March 20, 2023, B. Budget Amendment #17, and C. American Rescue Plan Act of 2021 Grant Project Ordinance 12 April 3, 2023 4 NEW BUSINESS: POTENTIAL SALE OF AIRCRAFT HANGAR AT THE RALEIGH REGIONAL AIRPORT AT PERSON COUNTY: General Services Director Ray Foushee recapped for the Board that on September 23, 2022, Person County received a written offer to purchase the new aircraft hangar at the Raleigh Regional Airport at Person County, located at 385 Montgomery Drive, Timberlake, NC in the amount of $4,000,000 for a 30-year lease or sale. At the October 3, 2022 meeting, Mr. Foushee said the Board of Commissioners voted to tentatively accept the offer pending completion of the statutory offer, advertisement and upset bid procedure, initiated by the buyer’s 5% or $200,000 deposit with final action to accept the offer after completion of that process. Now, more than six months after the written offer letter, Person County still has not received the deposit. Mr. Foushee stated the County Attorney notified the potential buyer’s attorney on March 27, 2023 that the deposit was overdue, and that the Board would consider rescinding the prior acceptance of the offer for failure to send the deposit required by the statute and complete the purchase transaction. County Attorney Ellis Hankins said he told the potential buyer’s attorney that he would update them on the Board’s action following this meeting. Mr. Hankins recommended the Board to consider rescinding the Board’s prior acceptance of the offer, effective April 10, 2023 at 5:00 PM EDT, if the deposit required by statute was not received by that time, to allow the County to pursue other opportunities to sell or lease the hangar. Chairman Powell asked Mr. Foushee if all the punch list items have been completed to which Mr. Foushee said everything was completed and the final walk through was done last week and the hangar was now ready for use. A motion was made by Vice Chairman Sims and carried 5-0 to rescind the Board’s prior acceptance of the offer, effective April 10, 2023 at 5:00 PM EDT, if the deposit required by statute is not received by that time, to allow the County to pursue other opportunities to sell or lease the hangar. LETTERS OF OPPOSITION TO THE PROPOSED STATEWIDE MEDICAID CHILD AND FAMILIES SPECIALTY PLAN (CFSP): County Manager Katherine Cathey said at the Board’s March 20, 2023 meeting, Elliot Clark, Regional Director of Community Relations for Vaya Health, provided a report to the Board on Vaya’s current services, challenges, and initiatives. Ms. Cathey noted his report included information on Vaya’s work with all LME/MCO’s to establish a standardized seamless transition of care for children placed outside of the Vaya Health Plan region, continuing to expand a statewide open network to improve access to care for child services, and reducing or eliminating the need for Out of Network Agreements prior to entry to care. 13 April 3, 2023 5 Ms. Cathey stated Mr. Clark shared that moving the foster care population to tailored plans results in immediate access to whole person care, in a cost-effective and efficient way. Tailored plans offer deep local involvement along with a statewide network’s scale and reach. He also shared that creating a new foster care waiver, as required by House Bill 340, requires a lengthy procurement process that will result in additional administrative burden and cost: counties will not experience the same excellent level of customer service with a commercial plan; and the foster care waiver will not solve funding, staffing, and bed availability challenges. House Bill 340 establishes the following requirements of a CFSP: plans will result from RFPs issued by DHHS submitted by eligible PHPs; operating entities will authorize, pay for, and manage all Medicaid and NC Health Choice services covered under the plan; operating entities will operate care coordination functions and provide whole-person, integrated care across healthcare and treatment settings and foster care placements for enrollees; operating entities will be the single point of care management accountability; and DHHS will establish requirements for CFSP operations that address four considerations, including continuity of care and support across health care settings, changes in placement, and when the child transitions into the former foster youth Medicaid eligibility category. Ms. Cathey reiterated that Vaya has requested the Board of Commissioners to send letters to state legislators, sharing concerns with the proposed statewide CFSP for the reasons identified above; most notably, tailored plans offer deep local involvement through Vaya’s Board of Directors versus a commercial CFSP. Ms. Cathey requested Board consideration to approve letters to Senator Phil Berger, Secretary of DHHS Kody Kinsley, and Speaker Tim Moore as presented and authorize the Chairman to sign on behalf of the Board of Commissioners. Chairman Powell, as a member of a Vaya Regional Board, stated his opposition to a privatized state plan; he said by continuing the current plan with the LME’s, counties have a local voice in the process with the regional boards. A motion was made by Commissioner Thomas and carried 5-0 to approve the letters as presented and authorize Chairman Powell to sign. 14 April 3, 2023 6 15 April 3, 2023 7 16 April 3, 2023 8 17 April 3, 2023 9 18 April 3, 2023 10 19 April 3, 2023 11 20 April 3, 2023 12 21 April 3, 2023 13 22 April 3, 2023 14 23 April 3, 2023 15 FY 2024-2028 RECOMMENDED CAPITAL IMPROVEMENT PLAN (CIP): County Manager Katherine Cathey and Finance Director Amy Wehrenberg presented an overview of the FY 2024-2028 Recommended Capital Improvement Plan (CIP) for Board review. Ms. Cathey said the CIP is a planning tool for implementing large capital projects costing $50,000 or more for Person County Government, Piedmont Community College, and Person County Schools. The CIP also plans for capital needs for the Person County Museum of History and the Person County Senior Center, as they are county-owned facilities. Ms. Cathey noted the CIP paves the way for the Manager’s FY24 Recommended Budget, as it will provide an estimate of funding needed for capital projects and anticipates the impacts on operating costs as well. These capital projects span the next five fiscal years with the upcoming fiscal year (FY24) being the only year where a funding commitment is needed from the Board. The development of the CIP considered many factors including the current economic and fiscal climate, logistical and financial constraints, as well as competing demands and priorities for County funds. Ms. Cathey said the FY24 CIP requests were over $30M and the five-year plan requests total over $125M. Due to limited funding options and competing priorities the proposed projects not recommended are listed in the CIP document. Recommended in the FY24 CIP totaled over $17.5M with funding sources diversified. The General Fund contribution was proposed at $3.2M; CIP fund balance contributes $402K and the Airport Construction Fund Balance contribution was $80K; the Community Development Project Fund from the County’s contract with Republic Services funds two recreation, arts and parks projects for just over $123K and $1M has been anticipated in state grant funds for the Person Industries/Material Recovery Facility (PI/MRF) merger and renovation project. She noted that in FY24, the County would issue $12.7M in limited obligation bonds (LOBs) to finance accessibility and safety improvements for Person High School (PHS) with an increase of property taxes by $0.25 cent in order to make principal and interest payments on the bonds. In addition, the CIP budgets $740K in contingency funds for the PHS project. Ms. Cathey further noted that the public schools’ projects account for $14.1M or 80% of the FY24 Recommended CIP. Another major project recognized in the FY24 CIP was the PI/MRF merger and renovation with $2.1M budgeted for year 1 of the five-year plan. Ms. Cathey said an important element of the CIP was the debt service analysis and the tables and graph showing the future debt service levels for the County. The County’s total outstanding debt at June 30, 2023 will be $7.1M, which is an 18% decrease from prior year. The first issuance of debt in the amount of $19.4M is planned as part of larger financing plan over the next four years, totaling $58.3M. Ms. Cathey further noted the CIP was being presented for information only at this meeting with adoption scheduled at the Board’s April 17, 2023 meeting. 24 April 3, 2023 16 Ms. Cathey requested the Board to provide staff with feedback and to reach out to her or Ms. Wehrenberg with any questions, as staff would like the CIP to reflect the Board’s priorities especially if projects were pushed out or not included. Commissioner Palmer inquired about the replacement of bleachers in the PHS Auxiliary Gym in planning year 2027-28 projected to cost $110K. Ms. Wehrenberg stated the request by Person County Schools stated the bleachers were 30+ years old with mechanical issues and not ADA compliant. Staff offered to get more information from Person County Schools staff as needed. The CIP Recommended Funding Schedule for FY 2024-28 follows: 25 April 3, 2023 17 26 April 3, 2023 18 27 April 3, 2023 19 28 April 3, 2023 20 29 April 3, 2023 21 CHAIRMAN’S REPORT: Chairman Powell reported local businesses are contributing to the Charters of Freedom project. Chairman Powell stated conversations are taken place with Duke Energy related to future generation being placed at the Person County power plants. He noted that Duke Energy District Manager Tanya Evans has accepted a new role with Duke Energy as Director, Infrastructure Engagement in South Carolina noting our community is losing an advocate who lived and worked in Person County. Chairman Powell said he participated in a Ribbon Cutting at the Sportsplex for the new playground that was well received. In addition, Chairman Powell said he attended a Vaya regional board meeting in Yanceyville. MANAGER’S REPORT: County Manager Katherine Cathey reported there is a scheduled groundbreaking event for the Person County Charters of Freedom project on April 6, 2023 at 12:30pm at the Huck Sansbury Park. COMMISSIONER REPORT/COMMENTS: Vice Chairman Sims commented on the excellent job by the Sheriff’s Office keeping citizens safe. Commissioner Palmer thanked all county employees for their dedication. He urged employees to be patient for the pay study that would be addressed soon. Commissioner Puryear commended the Sheriff’s Office for the great job for public safety; he said he was honored to speak at the Vietnam Veterans Remembrance Day. Commissioner Thomas had no report. 30 April 3, 2023 22 CLOSED SESSION #1 A motion was made by Commissioner Puryear and carried 5-0 to enter into Closed Session #1 at 7:49pm per General Statute 143-318.11(a)(4) for the purpose of discussion of matters relating to the location or expansion of industries or other businesses in the county (economic development) with the following individuals permitted to attend: County Attorney Ellis Hankins, County Manager Katherine Cathey, Clerk to the Board Brenda Reaves, and Economic Development Director Brandy Lynch. Chairman Powell called the Closed Session #1 to order at 7:50pm. A motion was made by Commissioner Puryear and carried 5-0 to return to open session at 8:29pm. ADJOURNMENT: A motion was made by Vice Chairman Sims and carried 5-0 to adjourn the meeting at 8:30pm. _____________________________ ______________________________ Brenda B. Reaves Gordon Powell Clerk to the Board Chairman (Draft Board minutes are subject to Board approval). 31 4/17/2023 Dept./Acct No.Department Name Amount Incr / (Decr) EXPENDITURES General Fund Public Safety 79,735 Transfer to Other Funds 22,298 REVENUES General Fund Other Revenues 12,515 Intergovernmental Revenue 67,220 Charge for Services 22,298 EXPENDITURES Fire Tax District Special Revenue Fund 9,794 REVENUES Fire Tax District Special Revenue Fund Interest Earnings 9,794 EXPENDITURES Emergency Telephone Special Revenue Fund 22,298 REVENUES Emergency Telephone Special Revenue Fund Transfer from Other Funds 22,298 Explanation: Account Number Account Description $Revenues incr. (decr.) (cr.) dr. $Expenditures incr. (decr.) dr. (cr.) 10025-333263 Sheriff's Office-2023 GCC Grant 23,520 1004310-428416 Sheriff's Office-2023 GCC Grant/Supplies 23,520 10025-335233 Emergency Management-Tier II Fee Grant 3,700 1004330-428700 Emergency Management-Spec Supp/Tier II Fee Grant 3,700 100-389890 Miscellaneous Revenues 11,615 1004370-435300 EMS-Maint & Repair/Vehicles 11,615 10025-336840 Animal Services-Donation 900 1004380-420000 Animal Services-Supplies 900 BUDGET AMENDMENT #18 Received 2023 Governor's Crime Commission Grant for the Sheriff's Office ($23,520); recognize NC Tier II Grant for the Emergency Management Department ($3,700); received insurance claims for EMS vehicle damages ($11,615); received donation to Animal Services ($900) to support supply expenditures; amend excess federal seizure revenues in the Law Enforcement Restricted Fund ($40,000) to support training and equipment costs; recognize Interest Earnings from OSBM VFD Grant ($9,794) to support VFD equipment needs; and amend EMS excess fee revenue ($22,298) to cover the General Fund Transfer to the Emergency Telephone System Fund ($22,298) for expenditures that were recently deemed ineligible to be expensed in this Fund by the State's E911 Board for fiscal year 2022. BUDGET ADJUSTMENT DETAIL 32 17025-377231 LEC Restr Fund-Fed Seizure Forfeitures 40,000 1704311-429030 LEC Restr Fund-Spec/Supp Fed Seizure Forfeitures 40,000 25025-335900 Interest Earning-OSBM-VFD's Grant-2022 9,794 2504377-460930 OSBM-VFD's Grant-2022 9,794 10025-335410 EMS-Current Fees 22,298 1009821-401026 Gen Fund-Xfr to Emg Teleph Sys Fund 22,298 26070-398010 Emg Teleph Sys Fund-Xfr from General Fund 22,298 2604325-449900 Misc Expense 22,298 Totals 134,125 134,125 33 AGENDA ABSTRACT Meeting date: April 17, 2023 Consent Agenda Title: Audit Contract for Fiscal Year 2023 Summary of Information: As required annually, the County’s audit firm, Thompson, Price, Scott, Adams & Co, P.A. has submitted an audit contract and engagement letter for the County’s FY2023 audit work. The audit fee established for the FY2023 report is $72,500, same cost as the prior year. Once approved, this cost will be part of the Person County’s Adopted Budget for FY2023. Please see attached documents that include a more in-depth description of the audit services they will provide for this reporting period. Recommended Action: Approve the contract and execute the associated documents for Person County’s audit services for fiscal year ending June 30, 2023. Submitted By: Amy Wehrenberg, Finance Director 34 CONTRACT TO AUDIT ACCOUNTS LGC-205 Rev. /2 The of and and for Primary Government Unit, together with DPCU (if applicable), hereinafter referred to as Governmental Unit(s) Auditor Name Auditor Address Hereinafter referred to as Auditor hereby agree as follows: Must be within four months of FYE The Auditor shall audit all statements and disclosures required by U.S. generally accepted auditing standards (GAAS) and additional required legal statements and disclosures of all funds and/or divisions of the Governmental Unit(s). The non-major combining, and individual fund statements and schedules shall be subjected to the auditing procedures applied in the audit of the basic financial statements and an opinion shall be rendered in relation to (as applicable) the governmental activities, the business- type activities, theaggregate DPCUs, each major governmental and enterprise fund, and the aggregate remaining fundinformation (non- major government and enterprise funds, the internal service fund type, and the fiduciary fundtypes).7KHEDVLF ILQDQFLDOVWDWHPHQWVVKDOOLQFOXGHEXGJHWDU\FRPSDULVRQLQIRUPDWLRQLQDEXGJHWDU\FRPSDULVRQVWDWHPHQW UDWKHUWKDQDV56,IRUWKH*HQHUDO)XQGDQGDQ\DQQXDOO\EXGJHWHG6SHFLDO5HYHQXHIXQGV At a minimum, the Auditor shall conduct WKHaudit and renderWKHreport in accordance withGAAS.The Auditor shall perform the audit in accordance with Government Auditing Standards *$*$6if WKH *RYHUQPHQWDO8QLWH[SHQGHGRUPRUHLQFRPELQHG)HGHUDODQG6WDWHILQDQFLDODVVLVWDQFHGXULQJWKH UHSRUWLQJSHULRG.7KHDXGLWRUVKDOOSHUIRUPD6LQJOH$XGLWLIUHTXLUHGE\7LWOH86&RGHRI)HGHUDO5HJXODWLRQV 3DUWUniformAdministration Requirements, Cost Principles, and Audit Requirements for Federal Awards 6XESDUW) (UniformGuidance)RUthe State Single Audit Implementation Act This audit and allassociated audit documentation maybe subjectto review by Federal and State agencies in accordance withFederal and State laws, including thestaffs of theOffice of State Auditor (OSA) and the Local GovernmentCommission (LGC). If the audit requires afederalsingle audit LQDFFRUGDQFHZLWK the Uniform Guidance (§200.501), it is recommended that the AuditorandGovernmental Unit(s)jointly agree, in advance of the execution of this contract, which party is responsibleforsubmission of the auditand the accompanying data collection form to the Federal Audit Clearinghouse asrequired under the UniformGuidance (§200.512). (IIHFWLYHIRUDXGLWVRIILVFDO\HDUVEHJLQQLQJDIWHU-XQHWKH/*&ZLOODOORZDXGLWRUVWRFRQVLGHUZKHWKHU DXQLWTXDOLILHVDVD6WDWHORZULVNDXGLWHHEDVHGXSRQIHGHUDOFULWHULDLQWKH8QLIRUP*XLGDQFH DDQGEWKURXJKHDVLWDSSOLHVWR6WDWHDZDUGV,QDGGLWLRQWRWKHIHGHUDOFULWHULDLQWKH8QLIRUP *XLGDQFHDXGLWVPXVWKDYHEHHQVXEPLWWHGWLPHO\WRWKH/*&,ILQWKHUHSRUWLQJ\HDURULQHLWKHURIWKHWZR SUHYLRXV\HDUVWKHXQLWUHSRUWHGD)LQDQFLDO3HUIRUPDQFH,QGLFDWRURI&RQFHUQWKDWWKHDXGLWZDVODWHWKHQ Page 1 Governing Board Primary Government Unit Discretely Presented Component Unit (DPCU) (if applicable) Fiscal Year Ending 'DWH$XGLW:LOO%H6XEPLWWHGWR/*& BOARD OF COMMISSIONERS PERSON COUNTY N/A THOMPSON, PRICE, SCOTT, ADAMS & CO, P.A. 1626 S MADISON STREET WHITEVILLE, NC 28472 06/30/23 10/31/23 35 CONTRACT TO AUDIT ACCOUNTS LGC-205 Rev. /20 If an entity is determined to be a component of another government as defined by the group audit standards, the entity’s auditor shall make a good faith effort to comply in a timely manner with the requests of the group auditor in accordance with AU-6 §600.41 - §600.42. This contract contemplates an unmodified opinion being rendered. If during the process of conducting the audit, the Auditor determines that it will not be possible to render an unmodified opinion on the financial statements of the unit, the Auditor shall contact the LGC 6taff to discuss the circumstances leading to that conclusion as soon as is practical and before the final report is issued. The audit shall include such tests of the accounting records and such other auditing procedures as are considered by the Auditor to be necessary inthe circumstances. Any limitations or restrictions in scope which would lead to a qualification should be fully explained in an attachment to this contract. If this audit engagement is subject to the standards for audit as defined in Government Auditing Standards, 201 revision, issued by the Comptroller General of the United States, then by accepting this engagement, the Auditor warrants that he/she has met the requirements for a peer review and continuing education as specified in Government Auditing Standards. The Auditor agrees to provide a copy of the most recent peer review report to the Governmental Unit(s) and the Secretary of the LGC prior to the execution of an audit contract. Subsequent submissions of the report are required only upon report expiration or upon auditor’s receipt of an updated peer review report. If the audit firm received a peer review rating other than pass, the Auditor shall not contract with the Governmental Unit(s) without first contacting the Secretary of the LGC for a peer review analysis that may result in additional contractual requirements. If the audit engagement is not subject to Government AXGLWLQJ Standards or if financial statements are not prepared in accordance with U.S. generally accepted accounting principles (GAAP) and fail to include all disclosures required by GAAP, the Auditor shall provide an explanation as to why in an attachment to this contract or in an amendment. It is agreed that time is of the essence in this contract. All audits are to be performed and the report of audit submitted to LGC 6Waff within four months of fiscal year end. If it becomes necessary to amend thHDXGLW IHHRUWKHGDWHWKDWWKHDXGLWUHSRUWZLOOEHVXEPLWWHGWRWKH/*&, an amended contract along with a written explanation of the FKDQJH shall be submitted tothe Secretary of the LGC for approval. ,WLVDJUHHGWKDW*$$6LQFOXGHDUHYLHZRIWKH*RYHUQPHQWDO8QLW¶V8QLWV¶V\VWHPVRILQWHUQDOFRQWURO DQGDFFRXQWLQJDVVDPHUHODWHWRDFFRXQWDELOLW\RIIXQGVDQGDGKHUHQFHWREXGJHWDQGODZUHTXLUHPHQWV DSSOLFDEOHWKHUHWRWKDWWKH$XGLWRUVKDOOPDNHDZULWWHQUHSRUWZKLFKPD\RUPD\QRWEHDSDUWRIWKHZULWWHQ UHSRUWRIDXGLWWRWKH*RYHUQLQJ%RDUGVHWWLQJIRUWKKLVKHUILQGLQJVWRJHWKHUZLWKKLVUHFRPPHQGDWLRQVIRU LPSURYHPHQW7KDWZULWWHQUHSRUWVKDOOLQFOXGHDOOPDWWHUVGHILQHGDV³VLJQLILFDQWGHILFLHQFLHVDQGPDWHULDO ZHDNQHVVHV´LQ$8&RIWKH$,&3$3URIHVVLRQDO6WDQGDUGV&ODULILHG7KH$XGLWRUVKDOOILOHDFRS\RIWKDW UHSRUWZLWKWKH6HFUHWDU\RIWKH/*& )RU*$$6RU*RYHUQPHQW$XGLWLQJ6WDQGDUGVDXGLWVLIDQDXGLWRULVVXHVDQ$8&UHSRUWFRPPRQO\ UHIHUUHGWRDV³*RYHUQDQFH/HWWHU´/*&VWDIIGRHVQRWUHTXLUHWKHUHSRUWWREHVXEPLWWHGXQOHVVWKHDXGLWRU FLWHVVLJQLILFDQWILQGLQJVRULVVXHVIURPWKHDXGLWDVGHILQHGLQ$8&7KLVZRXOGLQFOXGHLVVXHV VXFKDVGLIILFXOWLHVHQFRXQWHUHGGXULQJWKHDXGLWVLJQLILFDQWRUXQXVXDOWUDQVDFWLRQVXQFRUUHFWHG PLVVWDWHPHQWVPDWWHUVWKDWDUHGLIILFXOWRUFRQWHQWLRXVUHYLHZHGZLWKWKRVHFKDUJHGZLWKJRYHUQDQFHDQGRWKHU VLJQLILFDQWPDWWHUV Page 2 WKHUHSRUWZDVQRWVXEPLWWHGWLPHO\IRU6WDWHORZULVNDXGLWHHVWDWXV3OHDVHUHIHUWR'LVFXVVLRQRI6LQJOH $XGLWVLQ1RUWK&DUROLQDRQWKH/*& VZHEVLWHIRUPRUHLQIRUPDWLRQ ,IWKHDXGLWDQG$XGLWRUFRPPXQLFDWLRQDUHIRXQGLQWKLVUHYLHZWREHVXEVWDQGDUGWKHUHVXOWVRIWKHUHYLHZ PD\EHIRUZDUGHGWRWKH1RUWK&DUROLQD6WDWH%RDUGRI&3$([DPLQHUV1&6WDWH%RDUG 36 CONTRACT TO AUDIT ACCOUNTS LGC-205 Rev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tRUDQGRYHUVLJKW agencies or other organizations) as required under the Federal and State Single Audit Acts. This does not include fees for any pre-issuance reviews that may be required by the NC Association of CPAs (NCACPA) Peer Review Committee or NCState Board of CPA Examiners (see Item 13). If the Governmental Unit(s) has/have outstanding revenue bonds, the Auditor shall submit to LGC 6taff, either in the notes to the audited financial statements or as a separate report, a calculation demonstrating compliance with the revenue bond rate covenant. Additionally, the Auditor shall submit to LGC 6taff simultaneously with the Governmental Unit’s (Units’) audited financial statements any other bond compliance statements or additional reports required by the authorizing bond documents, unless otherwise specified in the bond documents. After completing the audit, the Auditor shall submit to the Governing Board a written report of audit.This report shall include, but not be limited to, the following information: (a) Management’s Discussion andAnalysis, (b) the financial statements and notes of the Governmental Unit(s) and all of its component unitsprepared in accordance with GAAP, (c) supplementary information requested by the Governmental Unit(s) orrequired for full disclosure under the law, and (d) the Auditor’s opinion on the material presented. The Auditorshall furnish the required number of copies of the report of audit to the Governing Board upon completion. If the audit firm is required by the NC State Board, the NCACPA Peer Review Committee, or the Secretary of the LGC to have a pre-issuance review of its audit work, there shall be a statement in the engagement letter indicating the pre-issuance review requirement. There also shall be a statement that the Governmental Unit(s) shall not be billed for the pre-issuance review. The pre-issuance review shall beperformed prior to the completed audit being submitted to LGC Staff. The pre-issuance review report shallaccompany the audit report upon submission to LGC Staff 3DJH37 CONTRACT TO AUDIT ACCOUNTS LGC-205 Rev. /20 requesting the return of records.Page 4 7KH$XGLWRUVKDOOVXEPLWWKHUHSRUWRIDXGLWLQ3')IRUPDWWR/*&6WDII)RUDXGLWVRIXQLWVRWKHUWKDQ KRVSLWDOVWKHDXGLWUHSRUWVKRXOGEHVXEPLWWHGZKHQRUSULRUWRVXEPLWWLQJWKHILQDOLQYRLFHIRUVHUYLFHV UHQGHUHG7KHUHSRUWRIDXGLWDVILOHGZLWKWKH6HFUHWDU\RIWKH/*&EHFRPHVDPDWWHURISXEOLFUHFRUGIRU LQVSHFWLRQUHYLHZDQGFRS\LQWKHRIILFHVRIWKH/*&E\DQ\LQWHUHVWHGSDUWLHV$Q\VXEVHTXHQWUHYLVLRQVWR WKHVHUHSRUWVVKDOOEHVHQWWRWKH6HFUHWDU\RIWKH/*&7KHVHDXGLWHGILQDQFLDOVWDWHPHQWVH[FOXGLQJWKH $XGLWRUV¶RSLQLRQPD\EHXVHGLQWKHSUHSDUDWLRQRIRIILFLDOVWDWHPHQWVIRUGHEWRIIHULQJVE\PXQLFLSDOERQG UDWLQJVHUYLFHVWRIXOILOOVHFRQGDU\PDUNHWGLVFORVXUHUHTXLUHPHQWVRIWKH6HFXULWLHVDQG([FKDQJH&RPPLVVLRQ DQGIRURWKHUODZIXOSXUSRVHVRIWKH*RYHUQPHQWDO8QLWVZLWKRXWUHTXLULQJFRQVHQWRIWKH$XGLWRU,IWKH/*& 6WDIIGHWHUPLQHVWKDWFRUUHFWLRQVQHHGWREHPDGHWRWKH*RYHUQPHQWDO8QLW¶V8QLWV¶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f an approved contract needs to be modified or amended for any reason, the change shall be made in writingDQGpre-audited if the change includes a change in audit fee(pre-audit requirement does not apply to Kospitals). This amended contract shall becompleted in full, including a written explanation ofthe change, signed and dated by all original parties to thecontract. It shall then be submitted to the Secretary ofthe LGC for approval. No change to the audit contractshall be effective unless approved by the Secretary of theLGC, the Governing Board, and the Auditor. A copy of the engagement letter, issued by the Auditor and signed by both the Auditor and the Governmental Unit(s), shall be attached to this contract, and except for fees, work, and terms not related to audit services, shall be incorporated by reference as if fully set forth herein as part of this contract. In case of conflict between the terms of the engagement letter and the terms of this contract, the terms of this contract shall take precedence. Engagement letter terms that conflict with the contract are deemed to be void unless the conflicting terms of this contract are specifically deleted in Item of this contract. Engagement letters containing indemnification clauses shall not be accepted by LGC Staff. Special provisions should be limited. Please list any special provisions in an attachment. A separate contract should not be made for each division to be audited or report to be submitted. If a DPCU is subject to the audit requirements detailed in the Local Government Budget and Fiscal Control Act and a separate audit report is issued, a separate audit contract is required. If a separate report is not to be issued and the DPCU is included in the primary government audit, the DPCU shall be named along with the pULPDU\ government on this audit contract. DPCU Board approval date, signatures from the DPCU Board chairman and finance officer also shall be included on this contract. The contract shall be executed, pre-audited (pre-audit requirement does not apply to hospitals), and physically signed by all parties including Governmental Unit(s) and the Auditor, thensubmitted inPDF format to the Secretary of the LGC. The contract is not valid until it is approved by the Secretary of the LGC. The staff of the LGC shall notify the Governmental Unit and Auditor of contract approval by email. The audit should not be started before the contract is approved. Retention of Client Records: Auditors are subject to the NC State Board of CPA Examiners’ Retention of Client Records Rule 21 NCAC 08N .0305 as it relates to the provision of audit and other attest services, as well as non-attest services. Clients and former clients should be familiar with the requirements of this rule prior to 38 CONTRACT TO AUDIT ACCOUNTS LGC-205 Rev. /20 All non-attest service(s) being performed by the Auditor that are necessary to perform the audit must be identified and included in this contract. The Governmental Unit shall designate an individual with the suitable skills, knowledge, and/or experience (SKE) necessary to oversee the services and accept responsibility for the results of the services performed. If the Auditor is able to identify an individual with the appropriate SKE, s/he must document and include in the audit workpapers how he/she reached that conclusion. If the Auditor determines that an individual with the appropriate SKE cannot be identified, the Auditor cannot perform both the non-attest service(s) and the audit. See "Fees for Audit Services" page of this contract to disclose the person identified as having the appropriate SKE for the Governmental Unit. Page 5 $SSOLFDEOHWRDXGLWVZLWKILVFDO\HDUHQGVRI-XQHDQGODWHU7KHDXGLWRUVKDOOSUHVHQWWKH DXGLWHGILQDQFLDOVWDWHPHQWVLQFOXGLQJDQ\FRPSOLDQFHUHSRUWVWRWKHJRYHUQPHQWXQLW¶VJRYHUQLQJERG\RU DXGLWFRPPLWWHHLQDQRIILFLDOPHHWLQJLQRSHQVHVVLRQDVVRRQDVWKHDXGLWHGILQDQFLDOVWDWHPHQWVDUH DYDLODEOHEXWQRWODWHUWKDQGD\VDIWHUWKHVXEPLVVLRQRIWKHDXGLWUHSRUWWRWKH6HFUHWDU\7KHDXGLWRU¶V SUHVHQWDWLRQWRWKHJRYHUQPHQWXQLW¶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³5HVSRQVHWRWKH $XGLWRU¶V)LQGLQJV5HFRPPHQGDWLRQVDQG)LVFDO0DWWHUV´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¶V8QLWV¶IDLOXUHRUIRUEHDUDQFHWRHQIRUFHRUZDLYHURIDQ\ULJKWRUDQHYHQW RIEUHDFKRUGHIDXOWRQRQHRFFDVLRQRULQVWDQFHVKDOOQRWFRQVWLWXWHWKHZDLYHURIVXFKULJKWEUHDFKRU GHIDXOWRQDQ\VXEVHTXHQWRFFDVLRQRULQVWDQFH 7KHUHDUHQRRWKHUDJUHHPHQWVEHWZHHQWKHSDUWLHVKHUHWRDQGQRRWKHUDJUHHPHQWVUHODWLYHKHUHWR WKDWVKDOOEHHQIRUFHDEOHXQOHVVHQWHUHGLQWRLQDFFRUGDQFHZLWKWKHSURFHGXUHVHWRXWKHUHLQDQGDSSURYHG E\WKH6HFUHWDU\RIWKH/*& E-Verify. Auditor shall comply with the requirements of NCGS Chapter 64 Article 2. Further, if Auditor utilizes any subcontractor(s), Auditor shall require such subcontractor(s) to comply with the requirements of NCGS Chapter 64, Article 2. $SSOLFDEOHWRDXGLWVZLWKILVFDO\HDUHQGVRI-XQHDQGODWHU)or all non-attest services, the Auditor shall adhere to the independence rules of the AICPAProfessional Code of Conduct and *RYHUQPHQW$XGLWLQJ6WDQGDUGV5HYLVLRQ (as applicable).Financial statement preparationassistance shall be deemed a “significant threat” requiring the Auditor toapply safeguards sufficient toreduce the threat to an acceptable level. If the Auditor cannot reduce thethreats to an acceptable level, theAuditor cannot complete the audit. If the Auditor is able to reduce thethreats to an acceptable level, thedocumentation of this determination, including the safeguards applied,must be included in the auditworkpapers. 39 CONTRACT TO AUDIT ACCOUNTS LGC-205 Rev. /20 $OORIWKHDERYHSDUDJUDSKVDUHXQGHUVWRRGDQGVKDOODSSO\WRWKLVFRQWUDFWH[FHSWWKHIROORZLQJ QXPEHUHGSDUDJUDSKVVKDOOEHGHOHWHG6HH,WHPIRUFODULILFDWLRQ The process for submitting contracts, audit reports and invoices is subject to change. Auditors and units should use the submission process and instructions in effect at the time of submission. Refer to the N.C. Department of State Treasurer website at KWWSVZZZQFWUHDVXUHUFRPVWDWHDQGORFDO JRYHUQPHQWILQDQFHGLYLVLRQORFDOJRYHUQPHQWFRPPLVVLRQVXEPLWWLQJ\RXUDXGLW $OOFRPPXQLFDWLRQVUHJDUGLQJDXGLWFRQWUDFWUHTXHVWVIRUPRGLILFDWLRQRURIILFLDODSSURYDOVZLOOEHVHQW WRWKHHPDLODGGUHVVHVSURYLGHGRQWKHVLJQDWXUHSDJHVWKDWIROORZ 0RGLILFDWLRQVWRWKHODQJXDJHDQGWHUPVFRQWDLQHGLQWKLVFRQWUDFWIRUP/*&DUHQRWDOORZHG Page 40 CONTRACT TO AUDIT ACCOUNTS LGC-205 Rev. /20 FEES FOR AUDIT SERVICES 1.For all non-attest services, the Auditor shall adhere to the independence rules of the AICPA Professional Code of Conduct (as applicable) and Government Auditing Standards,2018 Revision. Refer to Item 2 of this contract for specific requirements. The following information must be provided by the Auditor; contracts presented to the LGC without Whis information will be not be approved. Financial statements were prepared by: Auditor Governmental Unit Third Party If applicable: Individual at Governmental Unit designated to have the suitable skills, knowledge, and/or experience (SKE) necessary to oversee the non-attest services and accept responsibility for the results of these services: Name: TitleDQG8QLW&RPSDQ\: Email Address: Fees may not be included in this contract for work performed on Annual Financial Information Reports (AFIRs), Form 990s, or other services not associated with audit fees and costs. Such fees may be includedinthe engagement letter but may not be included in this contract or in any invoices requiring approval of theLGC.See Items 8DQG for details on other allowable and excluded fees. 7KHDXGLWIHHLQIRUPDWLRQLQFOXGHGLQWKHWDEOHEHORZIRUERWKWKH3ULPDU\*RYHUQPHQW)HHVDQGWKH'3&8 )HHVLIDSSOLFDEOHVKRXOGEHUHSRUWHGDVDVSHFLILFGROODUDPRXQWRIDXGLWIHHVIRUWKH\HDUXQGHUWKLVFRQWUDFW,I DQ\ODQJXDJHRWKHUWKDQDQDPRXQWLVLQFOXGHGKHUHWKHFRQWUDFWZLOOEHUHWXUQHGWRWKHDXGLWIRUPIRUFRUUHFWLRQ Prior to WKHsubmission of the completed audited financial reportDQG applicable compliance reportsVXEMHFWWR WKLVFRQWUDFW RUWRDQ DPHQGPHQWWRWKLVFRQWUDFW(if required) the Auditor may submit LQWHULPinvoices for approval for services renderedXQGHUWKLVFRQWUDFWWRWKH6HFUHWDU\RIWKH/*&, not to exceed 75%of the billings IRUWKHXQLW VODVWDQQXDODXGLWWKDWZDVVXEPLWWHGWRWKH6HFUHWDU\RIWKH/*& All invoices for services rendered in an auditengagement asdefined in20NCAC.0503shall besubmitted to the Commission for approval before anypayment is made.Paymentbeforeapproval is aviolationof law. (This SDUDJUDSK not applicable to contracts DQGLQYRLFHVDVVRFLDWHGZLWKDXGLWVRIKRVSLWDOV 35,0$5<*2VERNMENT FEES Primary Government Unit Audit Fee $ Additional Fees Not Included in Audit Fee: Fee per Major Program $ Writing Financial Statements $ All Other Non-Attest Services $ DPCU FEES (if applicable) Discretely Presented Component Unit Audit Fee $ Additional Fees Not Included in Audit Fee: Fee per Major Program $ Writing Financial Statements $ All Other Non-Attest Services $ Page 251RW$SSOLFDEOH ,GHQWLILFDWLRQRI6.(,QGLYLGXDORQWKH/*&&RQWUDFWLVQRWDSSOLFDEOHIRU *$$6RQO\DXGLWVRUDXGLWVZLWK)<(VSULRUWR-XQH ✔ AMY WEHRENBERG FINANCE DIRECTOR / PERSON amyw@personcountync.gov PERSON COUNTY 65,000 7,500 N/A 41 LGC-205 CONTRACT TO AUDIT ACCOUNTS Rev. Page SIGNATURE PAGE AUDIT FIRM Audit Firm Authorized Firm Representative (typed or printed) Signature Date Email Address GOVERNMENTAL UNIT Governmental Unit Date Primary Government Unit Governing Board Approved Audit Contract (G.S.59-34(a) or G.S.115C-447(a)) Signature Date Email Address Chair of Audit Committee (typed or printed, or “NA”) Signature Date Email Address GOVERNMENTAL UNIT – PRE-AUDIT CERTIFICAT( Required by G.S. 159-28(a1) or G.S. 115C-441(a1) 1RWDSSOLFDEOHWRKRVSLWDOFRQWUDFWV This instrument has been pre-audited in the manner required by The Local Government Budget and Fiscal Control Act or by the School Budget and Fiscal Control Act. Primary Governmental Unit Finance Officer (typed or printed)Signature Date of Pre-Audit Certificate Email Address THOMPSON, PRICE, SCOTT, ADAMS & CO, P.A. ALAN W. THOMPSON 03/24/23 alanthompson@tpsacpas.com PERSON COUNTY AMY WEHRENBERG amyw@personcountync.gov 04/17/23 Mayor/Chairperson (typed or printed) GORDON POWELL g.powell@personcountync.gov 04/17/23 42 Members American Institute of CPAs - N.C. Association of CPAs - AICPA Division of Firms Thompson, Price, Scott, Adams & Co, P.A. P.O. Box 398 1626 S Madison Street Whiteville, NC 28472 Telephone (910) 642-2109 Fax (910) 642-5958 Alan W. Thompson, CPA R. Bryon Scott, CPA Gregory S. Adams, CPA ENGAGEMENT LETTER March 24, 2023 Person County 304 South Morgan St, Rm 219 Roxboro, NC 27573 To Management and Those Charged With Governance: We are pleased to confirm our understanding of the services we are to provide Person County for the year ended June 30, 2023. Audit Scope and Objectives We will audit the financial statements of the governmental activities, business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information, including the related disclosures, which collectively comprise the basic financial statements, of Person County as of and for the year ended June 30, 2023. Accounting standards generally accepted in the United States of America (GAAP) provide for certain required supplementary information (RSI), such as management’s discussion and analysis (MD&A), to supplement Person County’s basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to Person County’s RSI in accordance with auditing standards generally accepted in the United States of America (GAAS). These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The following RSI is required by GAAP and will be subjected to certain limited procedures, but will not be audited: 1.Management’s discussion and analysis. 2.Law Enforcement Officers’ Special Separation Allowance Schedule of Total Pension Liability (Asset) and Schedule of Total Pension Liability (Asset) as a Percentage of Covered-Employee Payroll 3.Schedule of the Proportionate Share of the Net Pension Liability (Asset) and Schedule of County Contributions – LGERS 4.Schedule of the Proportionate Share of the Net Pension Liability (Asset) and Schedule of County Contributions – ROD 5.Schedule of Changes in the Total OPEB Liability and Related Ratios We have also been engaged to report on supplementary information other than RSI that accompanies Person County’s financial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with GAAS, and we will provide an opinion on it in relation to the financial statements as a whole in a report combined with our auditors’ report on the financial statements: 43 1.Schedule of Expenditures of Federal and State Awards. 2.Combining and Individual Fund Financial Statements, Budgetary Schedules, and Other Schedules The following other information accompanying the financial statements will not be subjected to the auditing procedures applied in our audit of the financial statements, and our auditor’s report will not provide an opinion or any assurance on that other information. 1.Introductory and Statistical Schedules (prepared for Annual Comprehensive Financial Report presentation) Our responsibility for other information included in documents containing the entity’s audited financial statements and auditors’ report does not extend beyond the financial information identified in the report. We have no responsibility for determining whether such other information contained in these documents is properly stated. The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a shole are free from material misstatement, whether due to fraud or error, and issue an auditors’ report that includes our opinions about whether your financial statements are fairly presented, in all material respects, in conformity with GAAP, and report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. Misstatements, including omissions, can arise from fraud or error and are considered material if there is a substantial likelihood that, individually, or in the aggregate, they would influence the judgment of a reasonable user made based on the financial statements. The objective also includes reporting on- Internal control over financial reporting and compliance with the provisions of laws, regulations, contracts, and award agreements, noncompliance with which could have a material effect on the financial statements in accordance with Government Auditing Standards. Internal control over compliance related to major programs and an opinion (or disclaimer of opinion) on compliance with federal statutes, regulations, and the terms and conditions of federal awards that could have a direct and material effect on each major program in accordance with the Single Audit Act Amendments of 1996 and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Auditors’ Responsibilities for the Audit of the Financial Statements and Single Audit We will conduct our audit will be conducted in accordance with GAAS; the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act Amendments of 1996; and the provisions of the Uniform Guidance, and will include tests of accounting records, a determination of major program(s) in accordance with the Uniform Guidance, and other procedures we consider necessary to enable us to express such opinions. As part of an audit in accordance with GAAS and Government Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We will evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. We will also evaluate the overall presentation of the financial statements, including the disclosures, and determine whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity. Because the determination of waste and abuse is subjective, Government Auditing Standards do not expect auditors to perform specific procedures to detect waste or abuse in financial audits nor do they expect auditors to provide reasonable assurance of detecting waste or abuse. Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is an unavoidable risk that some material misstatements or noncompliance may exist and not be detected by us, even though the audit is properly planned and performed in accordance with GAAS and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements or major programs. However, we will inform the appropriate level of management of any material errors, any fraudulent financial reporting, or misappropriation of assets that 44 come to our attention. We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential, and of any material abuse that comes to our attention. We will include such matters in the reports required for a Single Audit. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors. We will also conclude, based on the audit evidence obtained, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the government’s ability to continue as a going concern for a reasonable period of time. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts and may include tests of the physical existence of inventories (if material), and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from you about your responsibilities for the financial statements; schedule of expenditures of federal awards; federal award programs; compliance with laws, regulations, contracts, and grant agreements; and other responsibilities required by generally accepted auditing standards. We may from time to time, and depending on the circumstances, use third-party service providers in serving your account. We may share confidential information about you with these service providers but remain committed to maintaining the confidentiality and security of your information. Accordingly, we maintain internal policies, procedures, and safeguards to protect the confidentiality of your personal information. In addition, we will secure confidentiality agreements with all service providers to maintain the confidentiality of your information and we will take reasonable precautions to determine that they have appropriate procedures in place to prevent the unauthorized release of your confidential information to others. In the event that we are unable to secure an appropriate confidentiality agreement, you will be asked to provide your consent prior to the sharing of your confidential information with the third-party service provider. Furthermore, we will remain responsible for the work provided by any such third-party service providers. Our audit of financial statements does not relieve you of your responsibilities. Audit Procedures-Internal Controls We will obtain an understanding of the entity and its environment, including internal control relevant to the audit, sufficient to identify and assess the risks of material misstatement of the financial statements, whether due to error or fraud, and to design and perform audit procedures responsive to those risks and obtain evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal control. Test of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. As required by the Uniform Guidance, we will perform tests of controls over compliance to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each major federal award program. However, our tests will be less in scope than would be necessary to render an opinion on those controls and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to the Uniform Guidance. An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. Accordingly, we will express no such opinion. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards, Government Auditing Standards, and the Uniform Guidance. Audit Procedures-Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of Person County’s compliance with provisions of applicable laws, regulations, contracts, and agreements, including grant agreements. However, the objective of those procedures will not be to provide an 45 opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards. The Uniform Guidance requires that we also plan and perform the audit to obtain reasonable assurance about whether the auditee has complied with federal statutes, regulations, and the terms and conditions of federal awards applicable to major programs. Our procedures will consist of tests of transactions and other applicable procedures described in the OMB Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each of Person County’s major programs. For federal programs that are included in the Compliance Supplement, our compliance and internal control procedures will relate to the compliance requirements that the Compliance supplement identifies as being subject to audit. The purpose of these procedures will be to express an opinion on Person County’s compliance with requirements applicable to each of its major programs in our report on compliance issued pursuant to the Uniform Guidance. Other Services We will also assist in preparing the financial statements, schedule of expenditures of federal and State awards, and related notes of Person County in conformity with U.S. generally accepted accounting principles and the Uniform Guidance based on information provided by you. We may also have to assist with some year-end adjustments. These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. We will perform the services in accordance with applicable professional standards. The other services are limited to the financial statements, schedule of expenditures of federal and State awards, and related notes services previously defined. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities. You agree to assume all management responsibilities relating to the financial statements, schedules of expenditures of federal and State awards, related notes, and any other nonaudit services we provide. You will be required to acknowledge in the management representation letter our assistance with preparation of the financial statements, schedule of expenditures of federal and State awards, and related notes and that you have reviewed and approved the financial statements, the schedule of expenditures of federal awards, and related notes prior to their issuance and have accepted responsibility for them. Further, you agree to oversee the nonaudit services by designating an individual, (Amy Wehrenberg), who possesses suitable skill, knowledge, or experience; evaluate the adequacy and results of those services; and accept responsibility for them. Responsibilities of Management for the Financial Statements and Single Audit Our audit will be conducted on the basis that you acknowledge and understand your responsibility for (1) designing, implementing, and maintaining effective internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, including internal controls over federal and State awards, and for evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives are met; (2) following laws and regulations; (3) ensuring that there is reasonable assurance that government programs are administered in compliance with compliance requirements; and (4) ensuring that management and financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles; for the preparation and fair presentation of the financial statements, schedule of expenditures of federal and State awards, and all accompanying information in conformity with U.S. generally accepted accounting principles; and for compliance with applicable laws and regulations (including federal statutes), rules, and the provisions of contracts and grant agreements (including award agreements). Your responsibilities also include identifying significant contractor relationships in which the contractor has responsibility for program compliance and for the accuracy and completeness of that information. You are also responsible for making drafts of the schedule of expenditures of federal awards, all financial records, and related information available to us and for the accuracy and completeness of that information (including information from outside of the general and subsidiary ledgers). You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, identification of all related parties and all related-party relationships and transactions, and other matters; (2) access to personnel, accounts, books, records, supporting documentation, and other information as needed to perform an audit under the Uniform Guidance, (3) additional information that we may request for the purpose of the audit, and (4) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. At the conclusion of our audit, we will 46 require certain written representations from you about the financial statements; schedule of expenditures of federal and State awards; federal or State award programs; compliance with laws, regulations, contracts, and grant agreements; and related matters. Your responsibilities include adjusting the financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements of each opinion unit taken as a whole. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud or illegal acts affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud or illegal acts could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the entity complies with applicable laws, regulations, contracts, agreements, and grants. You are also responsible for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations, contracts, and grant agreements that we report. Additionally, as required by the Uniform Guidance, it is management’s responsibility to evaluate and monitor noncompliance with federal statutes, regulations, and the terms and conditions of federal awards; take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings; promptly follow up and take corrective action on reported audit findings; and prepare a summary schedule of prior audit findings and a separate corrective action plan. The summary schedule of prior audit findings should be available for our review by May 1, 2023. You are responsible for identifying all federal and State awards received and understanding and complying with the compliance requirements and for the preparation of the schedule of expenditures of federal and State awards (including notes and noncash assistance received, and COVID-19-related concepts, such as lost revenues, if applicable) in conformity with the Uniform Guidance. You agree to include our report on the schedule of expenditures of federal and State awards in any document that contains and indicates that we have reported on the schedule of expenditures of federal and State awards. You also agree to make the audited financial statements readily available to intended users of schedules of expenditures of federal and State awards no later than the date the schedule of expenditures of federal awards is issued with our report thereon. Your responsibilities include acknowledging to us in the written representation letter that (1) you are responsible for presentation of the schedule of expenditures of federal and State awards in accordance with the Uniform Guidance; (2) you believe the schedule of expenditures of federal and State awards, including its form and content, is stated fairly in accordance with the Uniform Guidance; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the schedule of expenditures of federal and State awards. You are also responsible for the preparation of the other supplementary information, which we have been engaged to report on, in conformity with U.S. generally accepted accounting principles (GAAP). You agree to include our report on the supplementary information in any document that contains and indicates that we have reported on the supplementary information. You also agree to make the audited financial statements readily available to users of the supplementary information no later than the date the supplementary information is issued with our report thereon. Your responsibilities include acknowledging to us in the written representation letter that (1) you are responsible for presentation of the supplementary information in accordance with GAAP; (2) you believe the supplementary information, including its form and content, is fairly presented in accordance with GAAP; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information. Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance audits, or other studies related to the objectives discussed in the Audit Scope and Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or studies. You are also responsible for providing management’s views on our current findings, conclusions, and recommendations, as well as your planned corrective actions, for the report, and for the timing and format for providing that information. With regard to publishing the financial statements on your website, you understand that websites are a means of distributing information and, therefore, we are not required to read the information 47 contained in those sites or to consider the consistency of other information on the website with the original document. Engagement Administration, Fees, and Other You may request that we perform additional services not addressed in this engagement letter. If this occurs, we will communicate with you regarding the scope of the additional services and the estimated fees. We also may issue a separate engagement letter covering the additional services. In the absence of any other written communication from us documenting such additional services, our services will continue to be governed by the terms of this engagement letter. We understand that your employees will prepare all cash, accounts receivable, or other confirmations we request and will locate any documents selected by us for testing. We will schedule the engagement based in part on deadlines, working conditions, and the availability of your key personnel. We will plan the engagement based on the assumption that your personnel will cooperate and provide assistance by performing tasks such as preparing requested schedules, retrieving supporting documents, and preparing confirmations. If for whatever reason your personnel are unavailable to provide the necessary assistance in a timely manner, it may substantially increase the work we have to do to complete the engagement within the established deadlines, resulting in an increase in fees over our original fee estimate. At the conclusion of the engagement, we will complete the appropriate sections of the Data Collection Form that summarizes our audit findings. It is management’s responsibility to submit the reporting package (including financial statements, schedule of expenditures of federal awards, summary schedule of prior audit findings, auditors’ reports, and corrective action plan) along with the Data Collection Form to the federal audit clearinghouse. We will coordinate with you the electronic submission and certification. If applicable, we will provide copies of our report for you to include with the reporting package you will submit to pass-through entities. The Data Collection Form and the reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditors’ report or nine months after the end of the audit period. We will provide copies of our reports to the Board; however, management is responsible for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection. The audit documentation for this engagement is the property of Thompson, Price, Scott, Adams & Co., P.A. and constitutes confidential information. However, subject to applicable laws and regulations, audit documentation and appropriate individuals will be made available upon request in a timely manner to Oversight Agencies (or its designee), a federal agency provided direct or indirect funding, or the U.S. Government Accounting Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of Thompson, Price, Scott, Adams & Co., P.A. personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parities may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. The audit documentation for this engagement will be retained for a minimum of five years after the report release date or for any additional period requested by the federal cognizant agency. If we are aware that a federal awarding agency, pass-through entity, or auditee is contesting an audit finding, we will contact the party contesting the audit finding for guidance prior to destroying the audit documentation. Alan Thompson is the engagement partner and is responsible for supervising the engagement and signing the reports or authorizing another individual to sign them. We expect to begin our audit by approximately April 1, 2023, and to issue our reports no later than October 31, 2023. Our audit engagement ends on delivery of our audit report. Any follow-up services that might be required will be a separate, new engagement. The terms and conditions of that new engagement will be governed by a new, specific engagement letter for that service. Our fee for these services will be at our standard hourly rates plus out-of-pocket costs (such as report reproduction, word processing, postage, travel, copies, telephone, etc.) except that we agree that our gross fee, including expenses, should not exceed $72,500. Also, any excessive additional fees incurred in obtaining required audit evidence (i.e. bank confirmations) will be billed directly to the Board. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. In accordance with our firm policies, work may be suspended if your account becomes 60 days or more overdue and may not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to 48 have been completed upon written notification of termination, even if we have not completed our report(s). You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date of termination. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If additional programs are required to be tested that have not been identified as major programs for testing in previous years, additional fees may be charged at standard hourly rates. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. However, we believe our contract as it is will be sufficient to cover but we do want to reserve the right to discuss this issue. Reporting We will issue written reports upon completion of our Single Audit. Our reports will be addressed to the Board of Commissioners and management of Person County. Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances, it may be necessary for us to modify our opinions, add a separate section, or add an emphasis-of-matter or other- matter paragraph to our auditors’ report, or if necessary, withdraw from this engagement. If our opinions are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or issue reports, or we may withdraw from this engagement. If circumstances occur related to the condition of your records, the availability of sufficient appropriate audit evidence, or the existence of a significant risk of material misstatement of the financial statements caused by error, fraudulent financial reporting, or misappropriation of assets, which in our professional judgment prevent us from completing the audit or forming an opinion on the financial statements, we retain the right to take any course of action permitted by professional standards, including declining to express an opinion or issue a report, or withdrawing from the engagement. The Government Auditing Standards report on internal control over financial reporting and on compliance and other matters will state that (1) the purpose of the report is solely to describe the scope of testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance, and (2) the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. The Uniform Guidance report on internal control over compliance will include a paragraph that states that the purpose of the report on internal control over compliance is solely to describe the scope of testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Both reports will state that the report is not suitable for any other purpose. We appreciate the opportunity to be of service to Person County and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Very truly yours, Alan W. Thompson, CPA Thompson, Price, Scott, Adams & Co., P.A. 49 RESPONSE: This letter correctly sets forth the understanding of Person County. Management signature: ________________________________________________ Title: _______________________________________________ Date: _______________________________________________ Governance signature: ________________________________________________ Title: _______________________________________________ Date: _______________________________________________ CC: Board of Commissioners County Manager Chairman, Board of Commissioners 50 AGENDA ABSTRACT Meeting date: April 17, 2023 Consent Agenda Title: Resolution to Establish Materiality Threshold for GASB 87 & 96 Summary of Information: Per guidance and review by the County’s audit firm, this Resolution establishes a materiality threshold of $5,000 for reporting requirements associated with two new accounting standards under GASB Statement No. 87 and 96 to prevent unnecessary and complex calculations on insignificant values for reporting purposes in the County’s annual audit report. GASB 87 went into effect for the County’s FY22 audit report which caused government entities to recognize certain lease asset and liabilities that were previously classified as operating leases. GASB 96 becomes effective for this reporting year (FY23), and requires the recognition of asset and liabilities in the audit for right-to-use technology subscription arrangements. It was determined that this threshold amount was a reasonable measurement since it also represents the County’s current asset capitalization threshold. If approved, the total calculated value of any qualifying lease contract or Subscription-Based Information Technology Agreement (SBITA) that falls below this threshold will be considered immaterial and excluded from the reporting totals for these agreements in the County’s audit report. Recommended Action: Approve the Resolution to Establish Materiality Threshold for GASB 87 & 96 as presented. Submitted By: Amy Wehrenberg, Finance Director 51 Resolution To Establish Materiality Threshold for Recognition Of Leases Under GASB Statement No. 87 and Subscription-Based Information Technology Arrangements (“SBITAs”) Under GASB Statement No. 96 WHEREAS, (1) General Accounting Standards Board (“GASB”) Statement No. 87 provides guidance on the accounting and financial reporting for lease expenditures; and (2) GASB Statement No. 96 provides guidance on the accounting and financial reporting for subscription- based information technology arrangements (“SBITAs”); and WHEREAS, a lease is defined as a contract (e.g., an agreement between two or more parties that creates enforceable rights and obligations) that conveys control of the right-to-use another entity’s nonfinancial asset; and an SBITA is defined as a contract that conveys control of the right to use another party’s information technology (IT) software, alone or in combination with a tangible capital asset, as specified in the contract for a defined period of time (a “subscription term”); and WHEREAS, under GASB Statement No. 87, a government entity generally should recognize certain lease assets and liabilities for leases that previously were classified as operating leases to enhance the relevance and consistency of information about governments’ leasing activities; and under GASB Statement No. 96, a government entity generally should recognize a right-to-use subscription asset, and a corresponding subscription liability; and WHEREAS, for certain leases and IT subscriptions, either the initial price or present value of future payments will be immaterial to the total value of the County’s assets and liabilities; and WHEREAS, after review of the leases and IT subscription contracts currently in place, County staff believes that a materiality threshold of $5,000.00 is reasonable with respect to compliance with GASB Statements No. 87 and 96, as that figure represents the County’s current asset capitalization threshold, and therefore recommends that the Board of Commissioners adopt that materiality threshold for GASB Statements No. 87 and 96 accounting purposes; NOW, THERFORE, the Person County Board of Commissioners does hereby adopt $5,000.00 as the materiality threshold for leases and subscription-based information technology arrangements (SBITAs) when determining whether to recognize such contracts and agreements as assets and the cost related to same as liabilities in compliance with GASB Statements No. 87 and 96. The Board reserves the right to adjust this materiality threshold from time to time as may be needed or recommended for audit purposes. Adopted this 17th day of April 2023. __________________________________ __________________________________ Gordon Powell, Chairman Brenda B. Reaves Person County Board of Commissioners Clerk to the Board 52 AGENDA ABSTRACT Meeting Date: April 17, 2023 Agenda Title: Classification and Pay Study Update Summary of Information: Management Advisory Group (MAG) will report findings, key areas of concern, generalized market survey results, and financial and organizational impacts resulting from the classification and pay study. Human Resources staff will continue analyzing the consultants’ recommended salary schedule and the impact on each position and employee. Once this analysis is complete, information will be shared with department heads for additional feedback. Recommended Action: Receive presentation and provide feedback to staff. Submitted By: Sonya Carver, Human Resources Director 53 Board of Commissioners PresentationCompensation/Classification StudyApril 17, 2023154 © Management Advisory Group, Inc. 2023Study Goals and ObjectivesPerform a Classification/Compensation Study for all County positionsCompare compensation to relevant labor markets/competitorsEnsure that positions performing similar work with essentially the same level of complexity, responsibility, and knowledge are classified togetherDevelop a competitive classification and compensation structureRecommend policy changes to support the compensation systemScope included 445 positions in 178 job titles255 © Management Advisory Group, Inc. 2023MethodologyCaptured key employee dataIdentified jobs where recruitment and retention are concernsConducted interviews with top management and selected staffGathered salary and compensation data from competitor organizationsReviewed Job Profile Questionnaire (JPQ) data from employeesRecommended changes to support a competitive compensation systemDeveloped implementation/transition costs356 © Management Advisory Group, Inc. 2023457 © Management Advisory Group, Inc. 2023Targeted Counties & Municipalities51. Alamance County 10. Vance County2. Caswell County 11. Wake County3. Durham County 12. Warren County4. Franklin County 13. Roxboro5. Granville County 14. Danville, VA6. Guilford County 15. South Boston, VA7. Nash County 16. Duke University Hospital8. Orange County 17. Person Memorial Hospital9. Rockingham County 18. UNC Chapel Hill Memorial Hospital58 © Management Advisory Group, Inc. 2023Market Survey Results6Overall, results show that the County positions surveyed lag the market by:10.75% at the minimums of the ranges15.70% at the midpoints of the ranges18.84% at the maximums of the rangesDuring the salary study, certain positions were further behind the market(and corrected in the recommended compensation plan):Deputy SheriffGIS AnalystPublic Information OfficerSocial WorkerMultiple Supervisor positionsMost Director positions59 © Management Advisory Group, Inc. 2023Proposed Compensation & Classification System DesignUnified Plan created for all County position titles178 job titlesOpen ranges with minimum, midpoint, & maximum34 grade levels (101 to 134)Range Widths: approx. 56% from minimum to maximum760 © Management Advisory Group, Inc. 2023Estimated Annualized Costs for Transition8446 Positions in 178 Titles Annualized CostsAdjustment to Minimums (271) $ 1,002,706Employee Equity Adjustments (374)$ 936,262Total Annualized Adjustments$ 1,938,968Changes in Total Payroll for Included Positions 10.18%61 © Management Advisory Group, Inc. 2023Recommendations on Compensation PoliciesMAG has provided suggested personnel policies for:ReclassificationPromotionLateral TransferDemotionTemporary AssignmentHiringAddressing Employees who “Max Out”The suggested policies reflect best practices in the field of HR.962 © Management Advisory Group, Inc. 2023Financial & Organizational ImpactFair and equitable internal relationships for positionsCompetitive starting salariesTotal Annualized Cost to Implement the Study: $ 1,938,968, or 10.18% of payroll1063 AGENDA ABSTRACT Meeting Date: April 17, 2023 Agenda Title: Phone System Transition Summary of Information: Person County IT has extensively reviewed multiple phone systems to replace our existing solution which is reaching its end of life and has recently begun to show signs of failure. Originally, a CIP project was proposed for FY26 to transition to a new phone system at a cost of $350,000. Due to increasing issues with the existing system and multiple vendors proposing solutions with a significant discount to upfront hardware costs, we propose moving forward with a new solution immediately. Recurring maintenance costs for the current phone system have also been considered as part of this process, and we believe it to be more prudent to put those dollars towards a new phone system instead of into a solution that is reaching its end of life. While the upfront capital investment for the selected solution is considerably less expensive than previously anticipated, the month-to-month costs are more expensive. Funding is available to cover the transition costs in FY23. Overall, the total cost of ownership will still be less than staying with an on-premise solution over a 10-year period. To cover the increased monthly costs, an additional annual allocation of $20,000 will need to be made beginning July 1, 2023. The proposed County Phone System Replacement project will be removed from the recommended projects list in the FY 2024-2028 CIP. Recommended Action: Authorize the County Manager to sign a contract with the selected vendor and commit to allocating the additional operating funds ($20,000 annually) in the FY24 Budget. Submitted By: Chris Puryear, IT Director 64 AGENDA ABSTRACT Meeting Date: April 17, 2023 Agenda Title: FY 2024-2028 Recommended Capital Improvement Plan (CIP) Summary of Information: The recommended five-year CIP that was presented to the Board of Commissioners on April 3, 2023, is before the board for discussion, adjustments, and adoption. The adoption of this CIP will allocate funding for the priority projects for the county, Person County Schools, and Piedmont Community College for FY24. The document also sets the priorities of projects for future fiscal years, although funding is only appropriated on an annual basis, and the plan is reviewed annually. The total amount proposed for funding in FY24 is $17,550,345, of this amount $3,200,000 is from the county’s general fund. Recommended Action: Provide direction to staff regarding any changes to the recommended plan and then adopt the CIP. Submitted By: Katherine M. Cathey, County Manager and Amy Wehrenberg, Finance Director 65 Person County, North Carolina Person County Capital Improvement Plan FY 2024-2028 Recommended Katherine Cathey, County Manager Brian Hart, Assistant County Manager Amy Wehrenberg, Finance Director April 3, 2023 66 Person County, North Carolina Capital Improvement Plan Table of Contents Manager’s Letter to the Board of Commissioners ............................................ 1-2 Objectives and Procedures for the CIP ................................................................. 3 Criteria for Project Priority ..................................................................................... 4 Completed and Ongoing Projects ..................................................................... 5-7 Recommended and Not Recommended Projects ........................................... 8-13 Funding Schedule ......................................................................................... 14-17 Graph-Revenue Sources ..................................................................................... 18 Graph-Projects by Function ................................................................................. 19 Graph-Projects by Type ...................................................................................... 20 Person County’s Debt Service ...................................................................... 21-24 Future Debt Service Payments ........................................................................... 25 67 PERSON COUNTY OFFICE OF THE COUNTY MANAGER 304 South Morgan Street, Room 212 Roxboro, NC 27573-5245 336-597-1720 Fax 336-599-1609 April 3, 2023 Dear Person County Board of Commissioners, I am pleased to present Person County’s Fiscal Year (FY) 2024‐2028 Recommended Capital Improvement Plan (CIP). The CIP is an important planning tool for our county, reflecting the Board of Commissioners’ priorities for large capital projects costing more than $50,000. In addition to Person County Government, this plan also incorporates the needs of our partner agencies, including Person County Schools (PCS) and Piedmont Community College (PCC), given that counties are statutorily responsible for the provision of educational facilities. We also include capital needs for two outside agencies for which the County owns the buildings, the Person County Museum of History and the Person County Senior Center. The development of this plan considers many factors including the current economic and fiscal climate, logistical and financial constraints, as well as competing demands and priorities for County funds. The most critical capital needs are those that address life‐safety issues. Once those needs are identified, we work towards a balance of needs and priorities within our logistical and financial constraints. This plan identifies the anticipated funding sources needed to meet these priorities. Although the projects in this plan span the next 5 years, the fiscal impacts extend far beyond. Projects that are financed incur debt service payments typically over a 15 to 20‐year period. Therefore, the full array of funding sources needed to support the projects as well as potential impacts to future operating budgets are also presented. The Board of Commissioners reviews the 5‐year CIP every year, but only funds the projects on an annual fiscal year basis. For the previous fiscal year (FY23), the Board of Commissioners appropriated $3,300,000 from the General Fund, $1,503,241 from Capital Investment Fund (CIF), $1,000,000 from the Water and Sewer Reserve Fund, and funding from several other revenue sources to fund the CIP. The FY23 CIP included significant increases in spending for all three entities. FY24 CIP requests total $30,199,351, and requests total $125,089,115 over the five‐year plan. The needs are great, but funding is limited, and the future is uncertain with the Duke Energy coal plants scheduled for retirement by the end of this decade. Examples of proposed projects that are not included in the recommended CIP due to limited funding options and competing priorities are Back‐Up 911 Center ($4.0M), Emergency Services Building/EOC Building Replacement ($40.2M), Parks and Recreation Projects (paving, trails, splashpad, pump track, bike lanes, fencing, renovations) ($4.3M), PCS New Roofs (Northern Middle School and School Bus Garage) ( $2.8M) and PCC General Occupation Building (plus backfill renovations) ($40.0M). The recommended FY24 CIP funding amount is $17,550,345. Like current year spending, next year’s funding sources are diversified. The General Fund contribution is proposed at $3,200,000; CIP fund balance contributes $402,109 and Airport Construction fund balance contributes $80,000; the Community Development Projects Fund from the County’s contract with Republic Services funds two recreation, arts and parks projects in the amount of $123,236; and $1,000,000 is anticipated in state grant funds for the Person Industries/Materials Recovery Facility (PI/MRF) Merger and Renovation project. In FY24, the County will issue $12,745,000 in limited obligation bonds (LOBs) to Page 1 68 finance accessibility and safety improvements for Person High School (PHS). This financing will require an increase in property taxes by $0.25 cents in order to make principal and interest payments on the bonds. In addition, the CIP budgets $740,000 in contingency funds for this project. Public Schools Projects account for $14,165,000 or 80.7% of the FY24 Recommended CIP. The other major project included in the FY24 CIP is the PI/MRF merger and renovation. $2.1M is budgeted for this County Project in year 1 of the five‐year plan. Other projects, including repairing the HVAC system in the County Office Building, will be delayed due to the significant investments being made in the PI/MRF merger and PHS improvements. After investing $1,912,968 in PCC Projects in FY23, the FY24 CIP includes $839,000 to complete several PCC capital projects that are already underway as well as one new project. An important element of this CIP is the debt service analysis and the tables and graph showing the future debt service levels for Person County Government. The County’s total outstanding debt at June 30, 2023 will be $7.1M, which is an 18% decrease from the prior year. The County, working in partnership with Person County Schools, is planning to issue new debt in FY24. The first financing of $19.4M is planned as part of larger financing plan over the next four years, totaling $58.3M. Please keep in mind that this Capital Improvement Plan is just that – a plan – and while a great deal of effort and analysis have gone into this, it offers a starting point for annual comparisons, fiscal changes, unforeseen needs, and a place where public discussion can begin. The CIP will continue to be reviewed throughout the year, presenting any recommended changes to the Board for consideration. This review is critical as new information about our capital needs, our fiscal health, financing tools, and existing project scheduling arises. Person County Government takes great care and pride in being fiscally responsible. This CIP demonstrates our commitment to provide not only sustainable infrastructure but improvements and enhancements to our community and quality of life. County staff looks forward to working with the Board of Commissioners and our community partners as we implement the FY 2024‐2028 CIP. Sincerely, Katherine M. Cathey County Manager Page 2 69 Person County, North Carolina Capital Improvement Plan Objectives of a CIP: Create a plan to organize long term capital needs in a manner to promote discussion regarding priority, feasibility, timing, potential costs, financing options and future budgetary effect. Limit projects to those costing $50,000 and over in the plan. Present an overview of requests submitted by Person County departments, Piedmont Community College and Public Schools. Facilitate the exchange of information and coordination between the County, the community college and the schools on capital planning. Steps in developing a CIP: Determine capital needs for all departments and certain County-funded agencies. Review priorities and assess proposed capital projects in relationship to these priorities. Make recommendations to the Board of County Commissioners on a project’s timing, priority and possible financing options. Categories of projects: Person County Government Piedmont Community College Public Schools Each project includes a description, a timeline for construction and operating costs, and the current status. Also included are graphs that summarize revenue sources, projects by function, projects by type, and outstanding debt. Page 3 70 Person County, North Carolina Capital Improvement Plan Criteria in determining project status: Safety Is public health or safety a critical factor with regard to this project? What are the consequences if not approved? Mandate Is the project required by legal mandates? Is the project needed to bring the County into compliance with any laws or regulations? Timing and Linkages What is the relationship to other projects, either ongoing or requested? Does the project relate to a County-adopted plan or policy? Economic Impact Will this project promote economic development or otherwise raise the standard of living for our citizens? Efficiencies Will this project increase productivity or service quality, or respond to a demand for service? Are there any project alternatives? Service Impact Will this project provide a critical service or improve the quality of life for our citizens? How will this project improve services to citizens and other service clients? How would delays in starting the project affect County services? Operating Budget Impact What is the possibility of cost escalation over time? Will this project reduce annual operating costs in some manner? What would be the impact upon the annual operating budget and future operating budgets? Debt Management What types of funding sources are available? How reliable is the funding source recommended for the project? How would any proposed debt impact the County’s debt capacity? Does the timing of the proposed construction correspond to the availability of funding? Page 4 71 Person County, North Carolina Capital Improvement Plan Completed Projects Person County Government: Enhanced Camera System ($89,788) IT Building Room Addition ($109,800) IT-UPS for New Room ($58,356) LEC-Water Valves/Actuators ($60,000) P&R-Athletic Field Light Poles ($127,364) Mayo Lake Park Road Widening ($65,025) Helena-Paving & ADA Parking ($105,952) Sportsplex Playground Equipment ($57,673) Scoreboard Replacement & Repairs ($45,818) Piedmont Community College: Main Power Switch Replacement ($113,450) Computer Server Room-AC Unit ($74,640) Campus Sidewalks Upgrade ($80,000) Master Plan Update/Feasibility Study ($50,000) Campus Master Plan ($80,000) Public Schools Stories Creek-Heat Pumps Replacement ($158,885) PHS ADA Weight Room ($144,800) Southern Middle School-Fire Alarm Upgrade ($180,640) Stories Creek-Heat Pumps Replacement ($158,885) South Elementary-Replace Floor Tile ($55,317) Ongoing Projects Person County Government: Permitting Software ($292,356) – Working through some reporting issues…waiting to closeout project until fully resolved. New Roof-Old Helena Gym ($297,019) – Completed…waiting on final invoice Executive Hangar Construction ($5,201,336) – Construction is complete with only a few punch list items remaining. A final walkthrough with the contractor, Airport Operator, his staff and County staff , as well as training on the hangar operations, is scheduled for the end of March 2023. P&R-ADA Accessibility Safety Surfacing ($142,721) – Project is 75% complete. Anticipating completion by end of June 2023. P&R-ADA Parking Areas ($32,856) – Project is 80% complete. Anticipating completion by end of June 2023. Page 5 72 Human Resources Software - NeoGov ($182,767) – Project was approved in FY 2022 to be expensed over a 4-year period. FY 2024 is the third year of the implementation phase. Re-pave PCOB Parking Lots ($81,100) – Planned for spring 2023. Completion expected by July 2023. Refurbish Water Tank-Airport ($64,000) – Revised scope to separate potable water supply for fire supply. Completion expected by July 2023. Upfit PCOB Auditorium to BOC Boardroom ($120,000) – Board of Commissioners approved to proceed with the majority of renovations to the auditorium, but made the decision to continue to hold their meetings in the current Board room on the 2nd floor of the PCOB unless it was necessary to schedule a meeting to be held in the auditorium due to large capacity of public attendance. Renovations are scheduled to begin in May 2023 with anticipated completion by early July 2023. HVAC Upgrades-Senior Center ($57,075) – Project is in process. Completion expected by end of March 2023. New Roof-EMS (Barden St) ($243,921) – Engineering has been done. Completion expected by September 2023. New Roof-Old Helena (EMS/Sheriff) ($164,205) – Construction in progress. Anticipate completion by end of March 2023. New Roof-Inspection/Planning Building ($315,361) – Engineering has been done. Completion expected by September 2023. EMS Station North ($10,000) – Still working on memorandum of agreement with Triple Springs VFD for building use, but still plans to expend the $10K by the end of the FY to begin renovation. Emergency Services Radio Upgrade ($180,000) – Funds should be expended by May 2023. Convert Picnic Shelters to Cabins ($63,300) – This project is pending due to uncertainty of grant award. This is requested again for FY24 to be funded with contribution funds from Republic Services (Community Development Project Fund). Outdoor Multi-Purpose Courts ($63,000) – Project is 80% complete. Plan to finish by end of June 2023. Kirby Rebirth Project-Rooftop Event Space ($48,396) – This project is pending due to uncertainty of grant award. This is requested again for FY24 to be funded with contribution funds from Republic Services (Community Development Project Fund). Piedmont Community College: Early College- POD Building ($556,740) – Construction of a new building for the PECIL program has been completed. The County is contributing to PCC in 5 annual installments. FY23 represents the 4th payment with the last payment to occur in FY24 for $79K. Page 6 73 Environmental Controls for Buildings ($325,000) – Project is completed. Waiting on final invoice payment. General Education Building Design ($300,000) – Preliminary design is in process. Chiller Room Upgrades ($500,000) – Preparing RFQ to send out in Spring 2023. Science Lab Renovations ($400,000) – Project is currently in design phase. Science Package ($80,000) – Project is in the bid process. Room Upfits B, C, G Buildings ($57,500) – Construction in progress. Anticipated completion by end of 2023. Repair HVAC Roof Waterlines ($90,000) – Preliminary design is in process New Roof-Bldg L & Covered Walkways ($326,468) – Engineering work has begun. Public Schools: Oak Lane Elementary Chiller ($150,000) –Schools used ESSR funds to complete project, and have requested to apply these available funds to the North Elementary Chiller which was quoted higher than anticipated. North Elementary Chiller ($150,000) – Applying funds from Oak Lane and North End chiller to complete construction. North End Elementary Chiller ($125,000) – Schools used ESSR funds to complete project with the exception of retainage costs, and have requested to apply any remaining funds to the North Elementary Chiller which was quoted higher than anticipated. Earl Bradsher Elementary – HVAC Units ($115,000) – Schools used ESSR funds to complete project, and have requested to apply any remaining funds to the North Elementary Chiller which was quoted higher than anticipated. Oak Lane Elementary - Roof Replacement ($990,636) – Waiting for favorable weather to begin construction. Anticipate completion by September 2023. South Elementary – Metal Roof Replacement ($21,430) – Schools made decision to use these funds to demo building. No action yet. Communication Radios ($150,000) – Radios have been ordered. Earl Bradsher-Fire Alarm System ($180,000) – In process of awarding bids Woodland Elementary-Repaint Canopies ($36,000) – Project is complete. Waiting on final invoice. PHS-Repave Parking Lot ($300,000) – No action yet New Roof-North End Elementary ($200,449) – No action yet Page 7 74 Person County Capital Improvement Plan FY 2024-2028 Recommended Projects YEAR DEPT PROJECT TITLE TOTAL COST PROJECT DESCRIPTION AND JUSTIFICATION 2024 Human Resources Software Acquisition 50,199 Purchase software by NeoGov to improve efficiency in HR operations. This is the 3rd year payment of a 4-year plan. General Services Demolish Water Tower-Old Helena School 65,000 Remove 25+ year old metal water tower located adjacent to Helena gym due to safety hazard of collapse on or near publicly used facility. General Services Replace Tractor at Airport 80,000 Replace 2-wheel drive 2000 model with 4-wheel drive 2022 model tractor dedicated to maintenance at the Airport. Proposed tractor will be more versatile, efficient, and better equipped to handle tasks that current tractor is unable to do. Resale value of old tractor is $25,000 - $35,000 which will capitalize potential return on investment. Emergency Services EMS Station North 75,000 An Emergency Medical Services Station on north end of the county to reduce response times to medical emergencies and reduce morbidity and mortality. Proposing to work with community partner to renovate existing space to staff a response vehicle and crew quarters without encumbering the cost of building a new facility. Emergency Services LUCAS CPR Compression Devices 52,910 Purchase four LUCAS III Chest Compression Devices to install in EMS fleet. These compression devices perform CPR compressions on a patient which allows EMS crews to focus on other life saving procedures. Recreation, Arts & Parks Conversion of Picnic Shelters 3,4,5 to Cabins 70,000 Convert three existing and unutilized picnic shelters into vacation cabins which would allow more rental opportunities for citizens of the county and outside visitors to the lake. This project was approved last year contingent upon a successful PARTF grant. Recommendation is to fully fund in FY24 using available Community Development Project funds provided by Republic Services if grant funds are not awarded. Recreation, Arts & Parks Kirby Rebirth Project: Roof Top Studio/Event Space 53,236 Create a rooftop studio and event space to provide a great tourist attraction that would also greatly benefit the operations and community. This project was approved last year contingent upon a successful PARTF grant. Recommendation is to fully fund in FY24 using available Community Development Project funds provided by Republic Services if grant funds are not awarded. Person Industries/PCRC PI/MRF Merger & Renovation 2,100,000 Year 1 of 2-phase project for merging Person Industries into PCRC location due to lease expiration of current Madison Blvd location on May 25, 2025. Feasibility study completed to show increased efficiency in recycling processing with updating machines, moving existing equipment, adding in temperature control area for Person Industries consumers to complete recycling related jobs. Buildling renovation and expansion of the PCRC facility would benefit the organization to be more streamlined with services and have more individuals to process recycling, increasing the tonnage that is sold per commodity vs. single stream. Up to $1M in grant revenue per phase is projected, although the project is eligible for potentially more grant funds. PCC Early College T Bldg-PECIL 79,000 Modular classroom building with 10 classrooms approved in 2019 CIP. Budget year 2023-2024 is the 5th and final year of funding to PCC for this project. PCC Chiller Room Upgrades 400,000 Second and final year of funding to PCC for replacement of (1) Cooling Tower and (2) Chillers, electrical and control upgrades, pump repair/replacement, engineering fees and drawings. Cooling Tower showing signs of structural deterioration and leaks; Chillers redundant and servicable, but beyond useful life. PCC Science Lab Renovations 200,000 Renovate (2) Biology/Anatomy classrooms and (1) Chemistry Lab. Damaged existing fixtures and cabinets will be removed so that labs can be reconfigured and renovated with new casework, countertops, fixtures and flooring ensuring the safe delivery of critical science instruction. Page 8 75 Person County Capital Improvement Plan FY 2024-2028 Recommended Projects YEAR DEPT PROJECT TITLE TOTAL COST PROJECT DESCRIPTION AND JUSTIFICATION PCC Room Upfits B, C and G Buildings 100,000 Additional updates to instructional spaces to ADA standards for increased safety, along with functionality upgrades. Replace current damaged flooring with a low maintenance vinyl tile, reconfigure staff area by removal of existing interior walls, replace degraded bathroom partitions, install ADA fixtures, and epoxy flooring, replace original ceiling tiles, energy efficient lighting, along with minor electrical, plumbing and HVAC updates, and include asbestos abatement necessary for EOC & IT and repair in Bldg G. PCC BDEC Entry 60,000 Add new storefront windows and doors, remove and replace subfloor/floor, upgrade electrical and lighting in the display areas. New entrance addresses repairs needed in the display area, creates an inviting entrance for users and an attractive storefront consistent with other downtown businesses. Public Schools Debt Financing - Various Improvements to Schools 12,745,000 Debt-financed project to provide funds to schools for improvements at Person High School in this first tranche of appoved funding by the Board of Commissioners in March 2023. This estimate includes $10.8M construction/renovation, $1.1M engineering and planning, $300K issuance costs and $545K contingency funds. Public Schools Contingency Funds - Local 740,000 Setting aside contingency funds from local County funding to use as needed for the School Improvements Project. Public Schools Install Cameras - All Schools 180,000 Provide matching funds to the Schools for the federal COPS School Violence Prevention Grant to install cameras at all schools for safety protocols. Need to install cameras at all schools so that buildings can be more closely monitored for safety and emergencies. Public Schools New Roof - South Elementary School 500,000 Most critical roof in need of replacement. Due to significant size and cost, recommending to address one quarter of roof to determine depth of deterioration that would provide a more accurate assessment of the needs for the remaining three quarters to be completed in the following year. 2025 Information Technology Virtual Infrastructure Upgrades 210,000 Replace aging servers responsible for hosting all County applications and upgrade storage infrastructure to meet data storage demands. Servers will have reached the end of their expected life. Technology changes and County-wide needs will require the servers to be replaced. Human Resources Software Acquisition 64,542 Purchase software by NeoGov to improve efficiency in HR operations. This is the final payment of 4-year plan. General Services Repair HVAC System in PCOB 450,000 Replace 60+ year old HVAC system in Board of Education wing of Person County Office Building. Multiple repairs have been made and dated equipment parts are becoming difficult to replace when failures occur. This is first year of two-year recommended project installation. Emergency Services Emergency Services Radio Upgrade 1,060,000 Upgrade the radios in the 911 CAD consoles as they are approaching their end of service life in FY25. Once this occurs, spare parts will no longer be available to have them repaired. There are already operational limitations with the system that impact performance and first responder safety. Recommendation is to fund this eligible equipment under the Emergency Telephone System Fund. Person Industries/PCRC PI/MRF Merger & Renovation 1,377,738 Second phase of 2-year project for merging Person Industries into PCRC location due to lease expiration of current Madison Blvd location on May 25, 2025. Feasibility study completed to show increased efficiency in recycling processing with updating machines, moving existing equipment, adding in temperature control area for Person Industries consumers to complete recycling related jobs. Buildling renovation and expansion of the PCRC facility would benefit the organization to be more streamlined with services and have more individuals to process recycling, increasing the tonnage that is sold per commodity vs. single stream. Up to $1M in grant revenue per phase is projected, although the project is eligible for potentially more grant funds. Page 9 76 Person County Capital Improvement Plan FY 2024-2028 Recommended Projects YEAR DEPT PROJECT TITLE TOTAL COST PROJECT DESCRIPTION AND JUSTIFICATION PCC Door Locking and Security 250,000 The current configuration of the classroom doors that are outward facing are independtly locked with a key for each classroom. All classrooms are exterior doors. Currently we have no way to lock down all doors in case of an emergency. Moving to a magnatic swipe door system will provide centralized control of a lock-down in case of emergency. Public Schools Contingency Funds - Local 340,000 Setting aside contingency funds from local County funding to use as needed for the School Improvements Project. Public Schools New Roof - South Elementary School 1,904,555 Most critical roof in need of replacement. Due to significant size and cost, recommending to address one quarter of roof in FY24 to determine depth of deterioration that would provide a more accurate assessment of the needs for these remaining three quarters to be completed in FY25. Public Schools Replace Water Fountains - all Schools 97,000 Replace all water fountains with new fountains containing lead filters. They need to be replaced due to age and possible changes in state regulations to drinking water in K-12 buildings. 2026 Information Technology County Phone System Replacement 350,000 Replace aging phone system utilized by all County department which meets its end of life in 2025 with end of support in 2029. IT Department is currently researching replacement options in anticipation of this system replacement. Figures included are only estimates at this time. General Services Repair HVAC System in PCOB 430,000 Replace 60+ year old HVAC system in Board of Education wing of Person County Office Building. Multiple repairs have been made and dated equipment parts are becoming difficult to replace when failures occur. This is second year of two-year recommended project installation. General Services New Roof - Emg Comm (911)149,006 As recommended in the Roofing Study. General Services New Roof - Law Enforcement Center 963,316 As recommended in the Roofing Study. General Services New Roof - Public Library 85,515 As recommended in the Roofing Study. Emergency Services Bio-Medical Device Replacement 418,000 Replace biomedical equipment (cardiac monitors/defibrillators and Automatic External Defibrillators) that meets end of life and require replacement. These devices are essential for patient care and required by the NC Office of EMS to have vehicles classified as Advanced Life Support vehicles. Recreation, Arts & Parks Athletic Field Light/Pole Upgrades 57,000 Replace light poles at various parks. All ballfields in Person County have light systems that are 25+ years old. Recommend to continue upgrading the lights for safety and preventative maintenance, and to reduce liability. PCC Mechanical, Electrical, Plumbing (MEP) Replacement 245,000 Replace hot water heaters, Penthouse Air Handlers, and Secondary HVAC Units that have been identified and prioritzed in PCC's Facility Master Plan. Identified equipment is beyond useful life. Chance of emergency repairs high and expect new units to be more efficient. This is the first year of a three-year project. PCC Bookstore Relocation 450,000 Relocate Bookstore and renovate area to create a campus Welcome Center that will house student support staff currently located in other areas of Campus. This will create a campus entrace that will cater to student needs, and create an "ease of doing business" with the community that will attract more students and visitors. Public Schools Debt Financing - Various Improvements to Schools 11,715,000 Debt-financed project to provide funds for improvements at various schools in this second tranche of funding appoved by the Board of Commissioners in March 2023. This estimate includes $9.9M construction/renovation, $1.02M engineering and planning, $300K issuance costs and $495K contingency funds. Public Schools Contingency Funds - Local 570,000 Setting aside contingency funds from local County funding to use as needed for the School Improvements Project. Public Schools Replace Electronic Door Locks - All Schools 150,000 Electronic door lock sytem is 15 years old and needs to be replaced and upgraded to increase speed of service. The new system would allow for instant data update and changes to be made without physically visiting each site. Public Schools Replace Exterior Doors - South and Oak Lane Elementary 110,000 Replace exterior doors at South and Oak Lane due to safety concerns and poor operating condition. Page 10 77 Person County Capital Improvement Plan FY 2024-2028 Recommended Projects YEAR DEPT PROJECT TITLE TOTAL COST PROJECT DESCRIPTION AND JUSTIFICATION Public Schools Replace asbestos floor tiles in Rooms 1-8 80,000 Remove asbestos floor tiles in 7 classrooms due to safety and heatlh concerns. Floor tiles are loose and may cause health issues for students and staff. Public Schools (p) School 121,544 As recommended in the Roofing Study. 2027 General Services New Roof - Mayo Park Buildings 212,954 As recommended in the Roofing Study. Recreation, Arts & Parks Athletic Field Light/Pole Upgrades 59,800 Replace light poles at various parks. All ballfields in Person County have light systems that are 25+ years old. Recommend to continue upgrading the lights for safety and preventative maintenance, and to reduce liability. Recreation, Arts & Parks ADA Accessible Elevator-Kirby 350,000 Construction and installation of an ADA accessible elevator in the Kirby building. This addition will provide accessibility from the basement to the stage, which is a critical need. It will also provide an ease to citizens, staff and resources with reduced physical exertion and risk of injury by providing a way to move stage props between floors. This will increase staff productivity and time efficiency. Recreation, Arts & Parks ADA Accessible Restroom-Kirby 200,000 Renovate Kirby restroom to provide ADA accessibility . The Kirby Auditorium currently has two ADA accessible single-stall (two toilets) restrooms that serve a facility with a capacity of over 1000 people. Recreation, Arts & Parks ADA Accessible Playgrounds 650,000 This project addresses the ADA accessibility needs for Person County children that are differently-abled and need special accommodations to utilize recreational facilities and playgrounds. These all-inclusive play spaces will further address sensory- processing needs with additional recreational equipment that allows for sensory-based experiences. PCC Mechanical, Electrical, Plumbing (MEP) Replacement 240,000 Replace hot water heaters, Penthouse Air Handlers, Secondary HVAC Units that have been identified and prioritzed in our Facility Master Plan. Identified equipment is beyond useful life. Chance of emergency repairs high and new units will be more efficient. This is the second year of a three-year project. Public Schools Contingency Funds - Local 418,865 Setting aside contingency funds from local County funding to use as needed for the School Improvements Project. Public Schools Painting entire school - Oak Lane Elementary 75,000 Need to paint entire school due to wear and tear of old paint, and paint peeling off walls and doors. Public Schools New Roof - Woodland Elementary 993,381 As recommended in the Roofing Study. 2028 General Services New Roof - Mayo Park Buildings 110,461 As recommended in the Roofing Study. General Services New Roof - IT Building 150,245 As recommended in the Roofing Study. General Services New Roof - Courthouse 145,256 As recommended in the Roofing Study. General Services New Roof - Museum Complex 423,331 As recommended in the Roofing Study. Recreation, Arts & Parks Athletic Field Light/Pole Upgrades 63,250 Replace light poles at various parks. All ballfields in Person County have light systems that are 25+ years old. Recommend to continue upgrading the lights for safety and preventative maintenance, and to reduce liability. Recreation, Arts & Parks Addition of Doorways-Kirby 50,000 Addition of two doorways to connect the Auditorium to the Foyer of the Kirby Rebirth and the Kirby Learning Studios will help ensure safety of staff and public. One doorway would be cut from the auditorium to the rebirth elevator foyer and another door to go from rebirth elevator foyer into the learning studios. Recreation, Arts & Parks Renovation & Repairs-Kirby 100,000 Repairs/Updates to Lighting, Draping, Roller Systems and addition of Streaming Equipment to provide ADA Accessibility. This includes installation of (1) flame-retardant curtains and motorization of grand drapes; (2) replacement of stage lighting system, and (3) installation of streaming equipment. Recreation, Arts & Parks Department Branding and Signage 100,000 Request is for consistent branding, signage and wayfinding in order to educate and inform community members and visitors of surroundings and amenities. Additionally, the Recreation Arts and Parks Department needs to identify itself, align it with the County and use that brand to connect themselves to their mission and vision in order to communicate their services better. Page 11 78 Person County Capital Improvement Plan FY 2024-2028 Recommended Projects YEAR DEPT PROJECT TITLE TOTAL COST PROJECT DESCRIPTION AND JUSTIFICATION Recreation, Arts & Parks HVAC Installation-Olive Hill Gym 150,000 There is a need for climate-controlled rental and program space within the community. Currently, there is limited use of these facilities from the late spring through early fall due to lack of HVAC. Also, the addition of HVAC to these facilities will decrease the likelihood of mold and other moisture-based issues throughout the warmer months, decreasing long-term maintenance costs. Recreation, Arts & Parks HVAC Installation-Old Helena Gym 150,000 There is a need for climate-controlled rental and program space within the community. Currently, there is limited use of these facilities from the late spring through early fall due to lack of HVAC. Also, the addition of HVAC to these facilities will decrease the likelihood of mold and other moisture-based issues throughout the warmer months, decreasing long-term maintenance costs. PCC Mechanical, Electrical, Plumbing (MEP) Replacement 365,629 Replace hot water heaters, Penthouse Air Handlers, Secondary HVAC Units that have been identified and prioritzed in our Facility Master Plan. Identified equipment is beyond useful life. Chance of emergency repairs high and new units will be more efficient. This is the third year of a three-year project. PCC IT Systems 475,000 Update phone systems and network switches. Not updating phone system could result in phone system failure and force migration to a new phone system without one in place. Current network switches are six years old and industry standard for life expectancy is seven years. Public Schools Debt Financing - Various Improvements to Schools 13,795,000 Debt-financed project to provide funds for improvements at various schools in this third tranche of funding appoved by the Board of Commissioners in March 2023. This estimate includes $11.71M construction/renovation, $1.2M engineering and planning, $300K issuance costs and $585K contingency funds. Public Schools Contingency Funds - Local 570,696 Setting aside contingency funds from local County funding to use as needed for the School Improvements Project. Public Schools Replace Bleachers - PHS Auxillary Gym 110,000 Need to replace 30+ year old bleachers due to the age and condition of bleachers . Also bleachers are constructed of wood, have inoperable mechanical issues, and do not meet ADA standards. Public Schools New Roof - Person High School 236,132 As recommended in the Roofing Study. Page 12 79 Person County Capital Improvement Plan FY 2024-2028 Projects Not Recommended DEPT PROJECT TITLE TOTAL COST PROJECT DESCRIPTION/REASON FOR NOT RECOMMENDING Emergency Services Back-Up 911 Center 4,000,000 Emergency Services enlisted the consultative support/services of Mission Critical Partners to conduct a facility feasibility assessment for a new Emergency Services Building, which would include current and future needs of 911 Center. Results of the study may impact this project, so it is not recommended at this time. Emergency Services Emergency Services Building/EOC Building Replacement 40,212,266 Emergency Services enlisted the consultative support/services of Mission Critical Partners to conduct a facility feasibility assessment. Preliminary results of the study were recently shared with the Board of Commissioners. BOC recognizes need and will continue to receive and evaluate information related to the potential project and its funding, as it is made available by the department and/or MCP. If BOC ultimately supports project, it will be forwarded to the County's Debt Consultants for further financial review and analysis. Recreation, Arts & Parks Paving Existing Gravel Parking Lots for Full ADA Access-All Parks 1,000,000 ADA and parking lot improvements are currently being addressed in previously approved CIP projects. Additional needs will continue to be assessed, prioritized and addressed by the department in collaboration with General Services and County Manager's Office. Recreation, Arts & Parks Rail Road Trails Acquisition & Development 1,500,000 The department was recently awarded a grant from DOT to conduct a multimodal feasibility study. Pending the results of the study and the availability of additional funding sources, the project is not recommended, but will be evaluated for further consideration. Recreation, Arts & Parks Public Splash Pad 750,000 Not recommending due to the addition of significant operating impacts and other competing projects. Recreation, Arts & Parks Pump Track 300,000 Not recommending at this time due to other critical capital needs. Recreation, Arts & Parks Bike Lanes Addition 100,000 Not recommending at this time due to other critical capital needs. Recreation, Arts & Parks Fence Repair & Replacement- All Parks 500,000 Recommended to include as an operating cost and complete for one park at a time. Therefore, project not recommended at this time. Recreation, Arts & Parks Timberlake Building Renovation 115,000 Project not recommended at this time due to competing priorities. Project may be impacted by future BOC decision about Old Helena School property. PCC General Occupation Building 28,000,000 Not recommending at this time due to other critical capital needs, including recommended PCC projects. PCC General Occupation Building- Backfill 12,000,000 Not recommending at this time due to other critical capital needs, including recommended PCC projects. Public Schools New Roof - Northern Middle School 2,429,970 Not recommended at this time as other CIP approved for school improvements is needed. Roofing is deferred to a year beyond 5-year plan and will be re-evaluated each year to determine if earlier replacement is necessary. Public Schools New Roof - School Bus Garage 414,258 Not recommended at this time as other CIP approved for school improvements is needed. Roofing is deferred to a year beyond 5-year plan and will be re-evaluated each year to determine if earlier replacement is necessary. Page 13 80 Person County Capital Improvement Plan (CIP) 2024-28 Recommended - Funding Schedule Revenues: General Fund Contribution 3,300,000 3,200,000 3,360,000 3,830,000 3,200,000 3,200,000 20,090,000 CIP Fund Balance - 402,109 333,835 222,378 - - 958,322 City of Roxboro Contribution (County Phone System Replacement)- - - 52,500 - - 52,500 City of Roxboro Contribution (New Roof- Emergency Communications (911))- - - 74,503 - - 74,503 Airport Construction Fund Balance (Replace Tractor at Airport)- 80,000 - - - - 80,000 State 911 Board Funds - - 1,060,000 - - - 1,060,000 PARTF Grant (Conversion of picnic shelters to cabins)63,300 - - - - - 63,300 PARTF Grant (Kirby Rebirth Project)24,198 - - - - - 24,198 Community Development Projects Fund Balance (Convert Old Landfill to Park)73,000 - - - - - 73,000 Community Development Projects Fund Balance (Kirby Rebirth & Conversion of picnic shelters to cabins)- 123,236 - - - - 123,236 State grant funds (PI/MRF Merger and Renovation)- 1,000,000 1,000,000 - - - 2,000,000 Limited Obligation Bonds (School Improvements)- 12,745,000 - 11,715,000 - 13,795,000 38,255,000 Capital Investment Fund Balance 1,503,241 - - - - - 1,503,241 Water and Sewer Reserve Fund (Western Sewer Expansion)1,000,000 - - - - - 1,000,000 Stormwater Fund Fees (IAIA Stormwater Programs)114,394 - - - - - 114,394 Total Sources of Revenue:6,078,133 17,550,345 5,753,835 15,894,381 3,200,000 16,995,000 65,471,694 Project Costs for County: Current Year 2022-23 Planning Year 2023-24 Planning Year 2024-25 Planning Year 2025-26 Planning Year 2026-27 Planning Year 2027-28 TOTAL PROJECT COSTS Information Technology: Virtual Infrastructure Upgrades - - 210,000 - - - 210,000 County Phone System Replacement - - - 350,000 - - 350,000 Human Resources: Software Acquisition 21,514 50,199 64,542 - - - 136,255 General Services: Re-pave PCOB Parking Lots 81,100 - - - - - 81,100 Refurbish Water Tank - Airport 64,000 - - - - - 64,000 Upfit PCOB Auditorium to BOC Boardroom 120,000 - - - - - 120,000 HVAC Upgrades - Senior Center 57,075 - - - - - 57,075 New Roof - EMS (Barden St.)243,921 - - - - - 243,921 New Roof - Helena EMS/Sheriff Satellite Station 164,205 - - - - - 164,205 New Roof - Insp/Planning Building 315,361 - - - - - 315,361 Demolish Water Tower-Old Helena School - 65,000 - - - - 65,000 Repair HVAC System in PCOB - - 450,000 430,000 - - 880,000 Replace Tractor at Airport - 80,000 - - - - 80,000 New Roof - Emergency Communications (911)- - - 149,006 - - 149,006 New Roof - Law Enforcement Center - - - 963,316 - - 963,316 New Roof - Library - - - 85,515 - - 85,515 New Roof - Mayo Park Buildings - - - - 212,954 110,461 323,415 TOTAL REVENUE SOURCESSources of Revenue: Current Year 2022-23 Planning Year 2023-24 Planning Year 2024-25 Planning Year 2025-26 Planning Year 2026-27 Planning Year 2027-28 Page 14 81 Person County Capital Improvement Plan (CIP) 2024-28 Recommended - Funding Schedule New Roof - IT Building - - - - - 150,245 150,245 New Roof - Courthouse - - - - - 145,256 145,256 New Roof - Museum Complex - - - - - 423,331 423,331 Emergency Services: EMS Station North 10,000 75,000 - - - - 85,000 Emergency Services Radio Upgrade 180,000 - 1,060,000 - - - 1,240,000 LUCAS CPR Compression Devices - 52,910 - - - - 52,910 Bio-Medical Device Replacement - - - 418,000 - - 418,000 Economic Development Western Sewer Expansion 1,000,000 - - - - - 1,000,000 Recreation, Arts & Parks: Athletic Field Light/Pole Upgrades 50,000 - - 57,000 59,800 63,250 230,050 Mayo Lake Park Road Widening 57,750 - - - - - 57,750 Helena - Park Areas Paving & ADA Parking 130,700 - - - - - 130,700 Conversion of Picnic Shelters to Cabins 63,300 70,000 - - - - 133,300 Rock Complex Playground Equipment 55,000 - - - - - 55,000 Outdoor Multi-Purpose Courts 63,000 - - - - - 63,000 Converting Old Landfill to Park 73,000 - - - - - 73,000 Kirby Rebirth Project - Roof Top Studio/Event Space 48,396 53,236 - - - - 101,632 Score Board Replacements and Repairs 65,000 - - - - - 65,000 Playground and Park Improvements 70,000 - - - - - 70,000 ADA Accessible Elevator-Kirby - - - - 350,000 - 350,000 ADA Accessible Restroom-Kirby - - - - 200,000 - 200,000 ADA Accessible Playgrounds - - - - 650,000 - 650,000 Addition of Doorways-Kirby - - - - - 50,000 50,000 Renovation & Repairs-Kirby - - - - - 100,000 100,000 Department Branding and Signage - - - - - 100,000 100,000 HVAC Installation-Olive Hill Gym - - - - - 150,000 150,000 HVAC Installation-Old Helena Gym - - - - - 150,000 150,000 Person Industries/PCRC PI/MRF Merger and Renovation - 2,100,000 1,377,738 - - - 3,477,738 Stormwater Management: IAIA Stormwater Programs 114,394 - - - - - 114,394 Total County Projects:3,047,716 2,546,345 3,162,280 2,452,837 1,472,754 1,442,543 14,124,475 Page 15 82 Person County Capital Improvement Plan (CIP) 2024-28 Recommended - Funding Schedule Project Costs for PCC: Current Year 2022-23 Planning Year 2023-24 Planning Year 2024-25 Planning Year 2025-26 Planning Year 2026-27 Planning Year 2027-28 TOTAL PROJECT COSTS Piedmont Community College (PCC): Early College - POD Building 79,000 79,000 - - - - 158,000 General Education Building 300,000 - - - - - 300,000 Chiller Room Upgrades 500,000 400,000 - - - - 900,000 Science Lab Renovations 400,000 200,000 - - - - 600,000 Campus Master Plan 80,000 - - - - - 80,000 Signage Package 80,000 - - - - - 80,000 Room Upfits B, C and G Bldgs 57,500 100,000 - - - - 157,500 Repair of HVAC Roof Water Lines 90,000 - - - - - 90,000 New Roof- Building L & covered walkways 326,468 - - - - - 326,468 BDEC Entry - 60,000 - - - - 60,000 Door Locking and Security - - 250,000 - - - 250,000 Mechanical, Electrical, Plumbing (MEP) Replacement - - - 245,000 240,000 365,629 850,629 Bookstore Relocation - - - 450,000 - - 450,000 IT Systems - - - - - 475,000 475,000 Total PCC Projects:1,912,968 839,000 250,000 695,000 240,000 840,629 4,777,597 Project Costs for Public Schools: Current Year 2022-23 Planning Year 2023-24 Planning Year 2024-25 Planning Year 2025-26 Planning Year 2026-27 Planning Year 2027-28 TOTAL PROJECT COSTS Public Schools: Communication Radios - All Schools 150,000 - - - - - 150,000 Earl Bradsher - Fire Alarm System 180,000 - - - - - 180,000 South Elem - Replace Floor Tile 87,000 - - - - - 87,000 PHS-ADA Weight Room 145,000 - - - - - 145,000 Woodland Elem - Repaint Canopies 55,000 - - - - - 55,000 PHS - Repave Parking Lot 300,000 - - - - - 300,000 New Roof-North End (sectors C,D,E)200,449 - - - - - 200,449 Debt Financing - Various Improvements to Schools Construction/Renovation - 10,818,553 - 9,850,000 - 11,650,000 32,318,553 A&E Fees - 1,081,855 - 1,020,000 - 1,199,550 3,301,405 Issuance Costs - 300,000 - 300,000 - 300,000 900,000 Contingency Funds-Financed - 544,592 - 545,000 - 645,450 1,735,042 Contingency Funds-Local - 740,000 340,000 570,000 418,865 570,696 2,639,561 Install Cameras - All Schools - 180,000 - - - - 180,000 Replace Electronic Door Locks - All Schools - - - 150,000 - - 150,000 New Roof - South Elementary - 500,000 1,904,555 - - - 2,404,555 Replace Exterior Doors - South and Oak Lane Elementary - - - 110,000 - - 110,000 Replace Water Fountains - all Schools - - 97,000 - - - 97,000 Replace asbestos floor tiles in Rms 1-8 - - - 80,000 - - 80,000 New Roof (canopies) - SMS - - - 121,544 - - 121,544 Painting entire school - Oak Lane - - - - 75,000 - 75,000 New Roof - Woodland Elementary - - - - 993,381 - 993,381 Replace Bleachers - PHS Auxillary Gym - - - - - 110,000 110,000 New Roof - Person High School - - - - - 236,132 236,132 Total Public Schools Projects:1,117,449 14,165,000 2,341,555 12,746,544 1,487,246 14,711,828 46,569,622 Total Project Costs:6,078,133 17,550,345 5,753,835 15,894,381 3,200,000 16,995,000 65,471,694 Page 16 83 Person County Capital Improvement Plan (CIP) 2024-28 Recommended - Funding Schedule Sources of Revenue for Operating Impact Costs: Current Year 2022-23 Planning Year 2023-24 Planning Year 2024-25 Planning Year 2025-26 Planning Year 2026-27 Planning Year 2027-28 TOTAL REVENUE SOURCES General Fund Revenues - 306,448 1,243,875 1,575,938 2,409,760 2,671,313 8,207,334 Rental Revenue-Conversion of Picnic Shelters 3,4,5 to Cabins - 22,500 22,500 22,500 22,500 22,500 112,500 Total Sources of Revenue for Operating Impact Costs:- 328,948 1,266,375 1,598,438 2,432,260 2,693,813 8,319,834 Operating Impact Costs: Current Year 2022-23 Planning Year 2023-24 Planning Year 2024-25 Planning Year 2025-26 Planning Year 2026-27 Planning Year 2027-28 TOTAL PROJECT COSTS Information Technology County Phone System Replacement Maintenance contract - - - 30,000 30,000 30,000 90,000 Human Resources Software Acquisition - - - 12,500 12,500 12,500 37,500 Emergency Services Emergency Services Radio Upgrade Contractural and maintenance service contracts - - - 12,000 12,000 12,000 36,000 LUCAS CPR Compression Devices 3-yr Preventive maintenance plan - 13,260 - - 13,260 - 26,520 Bio-Medical Device Replacement 3-yr Preventive maintenance plan - - - 24,000 - - 24,000 Recreation, Arts & Parks ADA Accessible Elevator Project Maintenance costs - - - - 1,000 1,000 2,000 Conversion of Picnic Shelters 3,4,5 to Cabins Maintenance costs - 5,000 5,000 5,000 5,000 5,000 25,000 Public Schools Debt Payments - 310,688 1,261,375 1,514,938 2,358,500 2,633,313 8,078,814 Total Operating Impact Costs:- 328,948 1,266,375 1,598,438 2,432,260 2,693,813 8,319,834 Note: Yellow highlighted estimates include the revenues and expenditures associated with new debt issuances for school improvements. Page 17 84 Person County Capital Improvement Plan Recommended - Revenue Sources FY 2024 - 2028 Total % Revenue Sources Description Current Year 2024 2025 2026 2027 2028 Totals % of Total Debt Proceeds - 12,745,000 - 11,715,000 - 13,795,000 38,255,000 58.4% General Fund Contribution 3,300,000 3,200,000 3,360,000 3,830,000 3,200,000 3,200,000 20,090,000 30.7% State grant funds (PI/MRF)- 1,000,000 1,000,000 - - - 2,000,000 3.1% Capital Investment Fund Balance 1,503,241 - - - - - 1,503,241 2.3% State 911 Board Funds - - 1,060,000 - - - 1,060,000 1.6% Water and Sewer Reserve Fund 1,000,000 - - - - - 1,000,000 1.5% CIP Fund Balance - 402,109 333,835 222,378 - - 958,322 1.5% Community Development Projects Fund Balance 73,000 123,236 - - - - 196,236 0.3% City of Roxboro Contributions - - - 127,003 - - 127,003 0.2% Stormwater Fund Fees 114,394 - - - - - 114,394 0.2% PARTF Grants 87,498 - - - - - 87,498 0.1% Airport Construction Fund Balance - 80,000 - - - - 80,000 0.1% Totals 6,078,133 17,550,345 5,753,835 15,894,381 3,200,000 16,995,000 65,471,694 100.0% 58.4% 30.7% 3.1% 2.3% 1.6% 1.5% 1.5% 0.3% 0.2% 0.2% 0.1% 0.1% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% Debt Proceeds General Fund Contribution State grant funds (PI/MRF) Capital Investment Fund Balance State 911 Board Funds Water and Sewer Reserve Fund CIP Fund Balance Community Development Projects Fund Balance City of Roxboro Contributions Stormwater Fund Fees PARTF Grants Airport Construction Fund Balance Page 18 85 Person County Capital Improvement Plan Recommended - by Function FY 2024 - 2028 Total % CIP Projects by Function Description Current Year 2024 2025 2026 2027 2028 Totals % of Total General Government 1,067,176 195,199 724,542 1,977,837 212,954 829,293 5,007,001 7.7% Public Safety 190,000 127,910 1,060,000 418,000 - - 1,795,910 2.7% Economic Development 1,000,000 - - - - - 1,000,000 1.5% Culture & Recreation 676,146 123,236 - 57,000 1,259,800 613,250 2,729,432 4.2% Person Industries/PCRC - 2,100,000 1,377,738 - - - 3,477,738 5.3% Environmental Protection 114,394 - - - - - 114,394 0.2% Education - PCC 1,912,968 839,000 250,000 695,000 240,000 840,629 4,777,597 7.3% Education - Schools 1,117,449 14,165,000 2,341,555 12,746,544 1,487,246 14,711,828 46,569,622 71.1% Totals 6,078,133 17,550,345 5,753,835 15,894,381 3,200,000 16,995,000 65,471,694 100.0% Gen Gov't 7.7%Public Safety 2.7% Econ Dev 1.5% Culture & Rec 4.2% PI/PCRC 5.3% Enviro Protection .2% Education - PCC 7.3%Education - Schools 71.1% Page 19 86 Person County Capital Improvement Plan Recommended - by Type FY 2024 - 2028 Total % CIP Projects by Type Description Current Year 2024 2025 2026 2027 2028 Totals % of Total Paving Projects 632,550 - - - - - 632,550 1.0% Equipment/Software Upgrades 715,514 363,109 1,431,542 918,000 - 475,000 3,903,165 6.0% Planning & Consulting 80,000 1,381,855 - 1,320,000 - 1,499,550 4,281,405 6.5% Other B&G Improvements 1,086,469 460,000 700,000 922,000 1,374,800 988,879 5,532,148 8.4% Roofing Replacements 1,340,404 500,000 1,904,555 1,319,381 1,206,335 1,065,425 7,336,100 11.2% Construction/Renovation 2,223,196 14,845,381 1,717,738 11,415,000 618,865 12,966,146 43,786,326 66.9% Totals 6,078,133 17,550,345 5,753,835 15,894,381 3,200,000 16,995,000 65,471,694 100.0% ----- - - #REF! 1.0% 6.0% 6.5% 8.4% 11.2% 66.9% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Paving Projects Equipment/Software Upgrades Planning & Consulting Other B&G Improvements Roofing Replacements Construction/Renovation Page 20 87 Person County's Debt Service Current Outstanding Debt Project Description Term Interest Rate % Outstanding Balance Last Pyt Fiscal Year 2012 SMS & portion of PHS Re‐roofing (QSCB) Re-roofing construction for Southern Middle School and a portion of Person High School; financed through a Qualified School Construction Bond (QSCB) yielding a 100% refund of the interest payments. 15 years 3.93% 1,032,093 2028 2015 PCRC & Various Roofing Projects Purchase, renovation and re-roofing of the existing Person County Recycling Facility, and re-roofing construction for the Kirby Civic Auditorium and Earl Bradsher Preschool. 15 years 2.80% 654,600 2029 2016 Roxplex & Various Roofing Projects Acquisition and improvements of Roxplex property; re-roofing construction to Huck Sansbury, South Elementary, Woodland Elementary, and Oak Lane Elementary; window replacements for North End Elementary, and a chiller replacement for Southern Middle School. 10 years 2.22% 489,569 2026 2017 Person County Senior Center Project Acquisition and improvements of existing facility (formerly “Total Fitness Center”) to be location of Person County Senior Center. 15 years 5.555% 1,548,547 2032 2018 Towers & Other Building Improvements Construction of public safety communication towers; Huck Sansbury HVAC and improvements to various school buildings. 15 years 3.51% 3,332,608 2033 TOTAL DEBT SERVICE OUTSTANDING $7,057,416 Page 21 88 Current Debt Analysis There are two standard ratios that measure debt service levels and the capacity for taking on additional debt. These ratios and their meaning for Person County are described as follows: Debt to Assets Ratio: Measures leverage, the extent to which total assets are financed with long- term debt. The debt-to-assets ratio is calculated as long-term debt divided by total assets. A high debt to assets ratio may indicate an over-reliance on debt for financing assets, and a low ratio may indicate a weak management of reserves. At FY 2021, the debt to assets ratio for Person County was 9% (drops slightly under 9% in FY 2022), while the other 22 counties with similar populations reported an average of 27%. Person County was the 6th highest county for the amount of total assets reported in comparison to these other counties, but rated the 5th lowest Debt to Assets Ratio, as well as the 4th lowest long-term debt expense. Results appear to indicate that Person County is minimally leveraged in debt compared to the population group average. As displayed in the chart below, Person County's debt to assets ratio has declined from 11% in FY 2020 to 9% in FY 2021. This reduction is due to the yearly paydown of debt. A slight uptick in FY2018 was the result of issuing new debt for the Senior Center renovation and construction of Public Safety Communication Towers. Strictly from a current reporting perspective on the County’s debt to assets ratio, the data supports that the County is more than sufficiently leveraged to take on additional long-term debt. A gradual change or level trend indicates to credit agencies a more strategic approach to the management of the County’s assets. Borrowing rates have been moderately low, although the Federal Reserve has implemented several increases this year in an attempt to address the current inflationary economy. At this time, Person County is planning to issue $10M in debt in June 2023 for Person High School improvements. Although the interest rate environment is not as favorable as it was 12 months ago, it is not anticipated that the interest rate increases will be severe enough to alter the County’s plan to move forward with the debt issuance. The issuance of new debt should cause the debt-to-asset ratio to climb, and be closer to the average of what counties in our population group are reporting, indicating an effort by the County to display a stronger management of reserves. Person County's FY Debt to Assets Ratio 2017 14% 2018 15% 2019 13% 2020 11% 2021 9% Page 22 89  Debt Service Ratio: Measures financing obligations, provides feedback on service flexibility with the amount of expenditures committed to annual debt service. The debt service ratio is calculated as annual debt service divided by total expenses. General accounting guidance discourages this ratio from being higher than 15% for a maximum benchmark. Any percentage higher than this can severely hamper the County's service flexibility. At FY 2021, Person County's debt service ratio reported at 3.5% (dropped to 3.0% in FY 2022), which is significantly under the population group’s average ratio of 10% for FY 2021. As it stands now, Person County is in a favorable position to take on more debt when comparing the debt service ratio levels to its peer counties. The issuance of new debt should cause the County’s debt service ratio to increase to a level that indicates a stronger management of financing resources in relation to the amount that is available for other services. Debt Service FY 2021 Ratio Person County 3% Population Group 10% Maximum Benchmark 15% Proposed Debt Service There are three debt issuances in this 5-year CIP plan for FY2024, 2026, and 2028 that the Board of Commissioners formerly approved via a Resolution of Intent on March 20, 2023 for a total of $38,255,000. This 3-tier financing will cover ADA and safety improvements to Person High School and various other public school buildings, and will require an increase in property taxes by $0.25 cents in order to make principal and interest payments on the Bonds. The detail for these projects are below:  Various Improvements to Schools Project (Tier 1) The County is proposing to issue a Limited Obligation Bond (LOB) for $12.745M in October 2023 that will cover the cost of planning, construction and renovation improvements, and issuance costs for Person High School. Renovations include improvements to the stadium, gym bleachers, ventilation system, installation of security cameras and elevator, and ADA construction to student and teacher restrooms. The total proposed debt amount for this project is comprised of the following: Construction/Renovation/Planning $10,818,553 A&E Fees 1,081,855 Issuance Costs 300,000 Contingency Funds 544,592 Total $12,745,000 Page 23 90 Various Improvements to Schools Project (Tier 2) The County is proposing to issue a Limited Obligation Bond (LOB) for $11.715M in October 2025 that will cover the cost of planning, construction and renovation improvements, and issuance costs for Stories Creek Elementary, South Elementary, Oak Lane Elementary, Helena Elementary, and Earl Bradsher Preschool. Renovations include various ADA and safety improvements. The total proposed debt amount for this project is comprised of the following: Construction/Renovation/Planning $ 9,850,000 A&E Fees 1,020,000 Issuance Costs 300,000 Contingency Funds 545,000 Total $11,715,000 Various Improvements to Schools Project (Tier 3) The County is proposing to issue a Limited Obligation Bond (LOB) for $13.795M in October 2027 that will cover the cost of planning, construction and renovation improvements, and issuance costs for Southern Middle School, Northern Middle School, Woodland Elementary, North End Elementary, and North Elementary. Renovations include various ADA and safety improvements. The total proposed debt amount for this project is comprised of the following: Construction/Renovation/Planning $11,650,000 A&E Fees 1,199,550 Issuance Costs 300,000 Contingency Funds 645,450 Total $13,795,000 The addition of this new debt is estimated to increase the County’s outstanding debt total from $7.1M at end of FY24 to $65.4M over the next four years. This will result in a significant uptick to the County’s debt service trend, which has trended downwards since 2018, the last time that Person County issued debt. The outstanding debt total projected at the end of FY28 after other debt service is paid down is expected to be $52.1M. Although the new debt is large in comparison to other debt issuances that the County has implemented over the past 20 years, the County has built up reserves that minimized the amount of tax revenue needed to support this new debt by only $.25 cents on the tax rate. However, the County will have to heavily consider significant projects in the near future as they would likely require a steeper tax increase to fund given the recent decision to move forward with this new debt for Schools. Page 24 91 Future Debt Service Fiscal Year Ending June 30 2012 School Roofing Projects for SMS & PHS (QSCB) 2015 PCRC & Various Roofing Projects 2016 Roxplex & Various Roofing Projects 2017 Senior Center & Various Roofing Projects 2018 Towers & Other Building Improvements Project Total Current Debt Service Year to Year Change in Current Debt Service 2024 243,717 116,100 259,158 187,842 498,280 1,305,096 (337,609) 2025 235,509 113,300 154,163 183,897 484,240 1,171,108 (133,988) 2026 227,302 110,500 76,249 179,951 470,200 1,064,202 (106,906) 2027 219,095 107,700 - 176,006 381,818 884,619 (179,583) 2028 106,470 104,900 - 172,060 370,411 753,841 (130,778) 2029 - 102,100 - 168,115 359,003 629,218 (124,623) 2030 - - - 164,169 347,596 511,765 (117,453) 2031 - - - 160,224 212,285 372,509 (139,256) 2032 - - - 156,284 106,143 262,426 (110,083) 2033 - - - - 102,633 102,633 (159,794) 2034 - - - - - - (102,633) 2035 - - - - - - - Totals 1,032,093$ 654,600$ 489,569$ 1,548,547$ 3,332,608$ 7,057,416$ (1,642,705)$ Fiscal Year Ending June 30 Total Current Debt Service 2023 Person High School Improvements 2025 Various School Improvements 2027 Various School Improvements Total Proposed Debt Service Adjusted Year to Year Change with Proposed Debt Service 2024 1,305,096 310,688 - - 1,615,784 (26,922) 2025 1,171,108 1,261,375 - - 2,432,483 816,700 2026 1,064,202 1,229,375 285,563 - 2,579,140 146,656 2027 884,619 1,197,375 1,161,125 - 3,243,119 663,979 2028 753,841 1,165,375 1,131,625 336,313 3,387,153 144,034 2029 629,218 1,133,375 1,102,125 1,362,625 4,227,343 840,190 2030 511,765 1,101,375 1,067,625 1,328,125 4,008,890 (218,453) 2031 372,509 1,069,375 1,038,375 1,293,625 3,773,884 (235,006) 2032 262,426 1,037,375 1,009,125 1,259,125 3,568,051 (205,833) 2033 102,633 1,005,375 979,875 1,224,625 3,312,508 (255,544) 2034 - 968,375 950,625 1,190,125 3,109,125 (203,383) 2035 - 936,625 921,375 1,155,625 3,013,625 (95,500) 2036 - 904,875 892,125 1,121,125 2,918,125 (95,500) 2037 - 873,125 862,875 1,086,625 2,822,625 (95,500) 2038 - 841,375 833,625 1,052,125 2,727,125 (95,500) 2039 - 809,625 804,375 1,017,625 2,631,625 (95,500) 2040 - 777,875 775,125 983,125 2,536,125 (95,500) 2041 - 746,125 745,875 948,625 2,440,625 (95,500) 2042 - 714,375 716,625 914,125 2,345,125 (95,500) 2043 - 682,625 687,375 879,625 2,249,625 (95,500) 2044 - 650,875 658,125 845,125 2,154,125 (95,500) 2045 - - 628,875 810,625 1,439,500 (714,625) 2046 - - 599,625 776,125 1,375,750 (63,750) 2047 - - - 741,625 741,625 (634,125) 2048 - - - 702,125 702,125 (39,500) 2049 - - - - - (702,125) 2050 - - - - - - Totals 7,057,416$ 19,416,938$ 17,852,063$ 21,028,813$ 65,355,229$ (1,642,705)$ Above chart displays Person County's current debt service schedule, which at FYE 2023 is $7.1M The Board of Commissioners formerly approved on March 20, 2023 to issue three tranches of debt for school improvements in the amount of $38,255,000. The chart displayed to the right estimates a $58.3M increase in debt service expense over the next four years from the additional debt. The graph below represents the County's outstanding debt service over a 10 year period, which includes the effect of adding the new debt through FY2028. $14.9 $12.6 $10.5 $8.7 $7.1 $24.9 $22.4 $37.7 $34.5 $52.1 0.0 10.0 20.0 30.0 40.0 50.0 60.0 2019 2020 2021 2022 2023 2024* 2025* 2026* 2027* 2028* (Millions) Fiscal Year End *(Estimate) Outstanding Debt Service Page 25 92 93 94 95 96 97 98 99 100 101