02-21-2023 Meeting Minutes BOC
February 21, 2023
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PERSON COUNTY BOARD OF COMMISSIONERS FEBRUARY 21, 2023
MEMBERS PRESENT OTHERS PRESENT
Gordon Powell Katherine Cathey, County Manager
C. Derrick Sims Brenda B. Reaves, Clerk to the Board
Kyle W. Puryear
Charlie Palmer
Jason Thomas
The Board of Commissioners for the County of Person, North Carolina, met in
regular session on Tuesday, February 21, 2023 at 9:00am. This meeting was set as the
Board’s annual retreat focusing primarily on the Fiscal Year 2023-2024 Budget and/or any
other topics as deemed appropriate. The Retreat location was at the Kirby Cultural Arts
Complex Upstairs Main Hall at 213 North Main Street, Roxboro, NC.
Chairman Powell called the meeting to order.
DISCUSSION/ADJUSTMENT/APPROVAL OF AGENDA:
A motion was made by Commissioner Puryear and carried 5-0 to approve the
agenda.
GETTING STARTED:
County Manager Katherine Cathey previewed the retreat agenda with the Board to
set the stage for the budget preparation for the upcoming fiscal year. She noted the Board
would receive mid-year tax and fiscal updates and a preview to the new fiscal year budget
requests, and the Board would discuss its priorities and strategic planning.
PROPERTY TAX REVENUE PREVIEW AND NEXT REAPPRAISAL:
Tax Administrator Russell Jones shared the following presentation for the County’s
Property Tax Revenue Preview:
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Mr. Jones said the FY23 budget was projected at $4.895B in total value with the
actual at $4.981B, over by $86M or 1.7%. He noted real property increased from $3.525B
to $3.600B, or an increase of $75M or 2%. Machinery and equipment remained flat due to
depreciation (normal loss of 6%) but was offset by some new investments with new
equipment at Polywood ($9M) and US Flue-Cured ($10M).
Mr. Jones stated the State appraised properties came in at $966M for FY23, which
was the highest ever, noting he had budgeted $926M for FY24, or a decrease of $40M or
4%. This equaled to 18.5% of the County’s valuation. He said the total for FY23 was
$4.981B, but budgeted at $4.895B, and estimated for FY24 at $5.016B, an increase of
$121M or 2.4%.
Mr. Jones noted the average growth over the last eight years, not including
reappraisal, was 1.26%.
Mr. Jones estimated DMV values at $450M (up from $425M).
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Mr. Jones said the fire tax valuations does not include the City. He noted the FY23
budget was $4.2B with the actual $4.285B, an increase of $85M or 2.0%.
He noted real property increased from $2.98B to $3.04B, or an increase of $60M
or 2.0%. Machinery and equipment went up from $357M to $368M due to depreciation
but was offset by new investments, an increase of $7M or 3.0%.
Mr. Jones said the State appraised property was $946M for FY23 (highest ever),
noting he budgeted $907M for FY24, or a decrease of $39M or 4.2%. This would be
21.04% of the County’s valuation.
Mr. Jones stated the total for FY23 was $4.285B, and he estimated for FY24 at
$4.315B, an increase of $115M or 2.6%.
Mr. Jones estimated DMV values at $380M (up from $350M).
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Mr. Jones said the FY24 estimate is at $926,000,000, which represents 18.46% of
total value for Person County ($5,016,000,000) as compared to last year at $966,424,834
which represented 19.39% of the County’s total value of $4,985B.
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Mr. Jones stated for the upcoming fiscal year the value of one penny would be
$534,038, noting last year one penny was valued at $519,741, which reflects an increase
of $14,297.
Person County’s tax rate is .72. Mr. Jones noted the collection rate of 97.5%, along
with the DMV collection rate of 99.95%.
Mr. Jones noted the value last year for one penny for fire was $444,483 and was
projected to increase by $14,211 to $458,694. The County’s fire tax rate is .05 with a
collection rate of 97.5%, along with the DMV collection rate of 99.95%. Mr. Jones further
noted the fire tax rate yields $2,293,468.
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Below is a report from NCDOR for all counties’ sales ratio from 2003-2022.
Mr. Jones told the Board reappraisal in Person County happens every four years,
based on market sales ratio. Revaluation is required every eight years or sooner if the sales
ratio falls below 90%.
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Mr. Jones stated the 2021 annual sales ratio ended up at 92.71% and January 2022
at 81%.
County Manager Katherine Cathey added that the county sets aside funding
annually in preparation for the associated costs of revaluation. Mr. Jones said it takes a
year and a half to plan and complete a reappraisal.
Mr. Jones stated the 2022 annual sales ratio ended up at 79.71% and January 2023
was 85%. Mr. Jones provided an example for the Board noting if this had been 2024 with
the sales ratio at 79.71%, state appraised taxes of $6,958,259 would have to be prorated
down to $5,556,428, a loss of $1,441,831.
If a 2025 reappraisal was deemed appropriate, Mr. Jones said the contractor would
begin work in July 2023. He said he would update the Board in May whether or not a
reappraisal will be appropriate in 2025.
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MID-YEAR FISCAL UPDATES:
Finance Director Amy Wehrenberg shared the following presentation for her Mid-
Year (December to December) Fiscal Update to illustrate the County’s financial position:
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FINANCIAL PLAN FOR CAPITAL & DEBT FINANCING UPDATE:
Mr. Doug Carter, President, and Mr. Andrew Carter, Vice President, of DEC
Associates Inc. of Charlotte provided the following presentation to the Board related to
their services for County Financial Planning for Capital and an update on Debt Financing:
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Mr. Doug Carter explained to the group that time was of the essence for the Board
to make a decision, to receive the bids from the Schools in a timely manner for a financing
in 2023 prior to the audit timeframe set by the Local Government Commission. He said
the debt model was impacted by timing more so than the interest rate. He also explained
how the bids coming in higher than projected would affect the debt model.
Mr. Andrew Carter outlined the process for the Board for the General Obligation
(GO) Bonds noting this process would delay the financing by another year or two with the
issuance in 2025 should the referendum pass favorably.
Vice Chairman Sims asked if a location had been determined for the proposed new
school; Commissioner Palmer stated he heard of a possible site in the northeastern sector
of the County. Ms. Cathey noted that in October, the Superintendent noted if a new
elementary school would be built, two schools would be closed.
When asked about the County’s debt capacity, Mr. Andrew Carter stated the
County has up to $38M debt capacity through 2027.
Commissioner Thomas asked Ms. Cathey about the results of the pay study to
which Ms. Cathey said staff was working on refining the details but estimated an expense
of $2M to fund the pay study.
It was the consensus of the Board to have a resolution of intent on the Board’s
March 6, 2023 agenda for consideration.
Chairman Powell announced a brief recess for a break at 10:21am. The meeting
reconvened at 10:38am.
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FISCAL YEAR 2024 BUDGET PREVIEW:
County Manager Katherine Cathey shared the following presentation titled Fiscal
Year 2024 Budget noting the data was general with early projections noting she would be
meeting with department directors over the next few weeks:
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Ms. Cathey confirmed that $300K anticipated lottery funds were included in the
debt model for all options.
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Staff confirmed a bond referendum could be bundled for schools, community
college and county projects.
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Ms. Cathey said the average percentage increase was not known for the
Classification and Compensation Study; she said that staff would have a better
understanding of the study prior to the Manager’s Recommended Budget. Also included
with the study is a software feature to assist with maintaining market level. Ms. Cathey
affirmed surrounding counties were included in the benchmarking labor market analysis.
When discussing County facility needs, Tax Administrator Russell Jones said the
Human Services facility has 72,000 sq. feet. Ms. Cathey asked the Board if they had
interest in a facility space assessment using current fiscal year funding to which the Board
had consensus. Ms. Cathey stated the current tenants of the Human Services facility include
the Department of Social Services, the Health Department, Juvenile Justice and Freedom
House. Commissioner Palmer said the old Leggett’s building was centralized uptown and
could be a possible option for a site for human services.
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FISCAL YEAR 2023 MID-YEAR BUDGET REQUESTS:
County Manager Katherine Cathey stated the Board has several FY23 mid-year
budget requests for consideration.
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Ms. Cathey introduced to the Board the Person County Museum of History’s
Executive Director Carrie V. Currie. Ms. Currie presented the following formal request to
keep the County Museum viable into the future.
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Ms. Currie said she was now serving in a full-time position and confirmed the
Museum would continue pursuing fundraising and membership drives.
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Ms. Cathey stated the Board has approximately $20K in its undesignated
contingency and if so desired by the Board, a budget amendment and an agreement can be
on the Board’s next meeting agenda to which the Board consented.
Ms. Cathey presented another mid-year budget requests from the Foundation
Forward organization donating the Charters of the Freedom displays. She said she and
staff would work to seize the opportunity to lower the costs for this project utilizing the
time and materials of interests of volunteers. Ms. Cathey suggested establishing a small
budget. Commissioner Thomas stated interest in refining the options with individualized
costs for possible donors for consideration at the Board’s next meeting.
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Vice Chairman Sims and Commissioner Puryear acknowledged progress and
efforts toward last year goals. Chairman Powell added that the goals were all evolving
projects. It was the consensus of the Board to keep the goals the same for the new fiscal
year.
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Ms. Cathey suggested the Board consider a day of strategic planning following the
adoption of the FY24 budget.
Ms. Cathey asked the Board if they desired a Manager’s Recommended Budget
keeping the goal of the tax rate flat. Commissioners agreed no one wants taxes to be raised
but indicated possible consideration of a minimal tax increase in light of the schools’
request of funding for ADA and safety needs. The Board deferred further discussion on the
schools’ request for funding to its next meeting, at which time they would continue
deliberating and possibly consider a resolution of support to move forward.
CLOSING REMARKS:
Chairman Powell closed the retreat thanking Ms. Cathey and staff for the financial
information, including the debt analysis, noting the debt consultants have proved to be
advantageous related to the schools’ request for funding. He asked staff to increase its
focus on grants and outside revenues for all departments.
Vice Chairman Sims thanked all presenters for making the needs known noting his
concern for an increase in the tax rate.
Commissioner Puryear thanked all presenters for the information needed to help
the Board to make decisions.
Commissioner Palmer commended everyone participating in the retreat for their
guidance and leadership to present facts and figures making it a productive day for the
Board.
Commissioner Thomas echoed the commissioner comments noting it was a lot of
information to take in; he added he met with the Superintendent of the Schools last Friday
to tour schools and he saw a lot that needed to be done.
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ADJOURNMENT:
A motion was made by Vice Chairman Sims and carried 5-0 to adjourn the
meeting at 12:47pm.
_____________________________ ______________________________
Brenda B. Reaves Gordon Powell
Clerk to the Board Chairman