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03-01-2021 Meeting Minutes BOC March 1, 2021 1 PERSON COUNTY BOARD OF COMMISSIONERS MARCH 1, 2021 MEMBERS PRESENT OTHERS PRESENT Gordon Powell Heidi York, County Manager Kyle W. Puryear Brenda B. Reaves, Clerk to the Board C. Derrick Sims Charlie Palmer Patricia Gentry The Board of Commissioners for the County of Person, North Carolina, met in regular session on Monday, March 1, 2021 at 9:00am in the Person County Office Building Auditorium. This meeting was set as the Board’s annual retreat focusing primarily on the Fiscal Year 2021-2022 Budget and/or any other topics as deemed appropriate. Chairman Powell called the meeting to order. DISCUSSION/ADJUSTMENT/APPROVAL OF AGENDA: Vice Chairman Puryear requested to add two items to the agenda: 1) an update for county debris removal, and 2) the Board to encourage Spectrum and others to improve infrastructure in rural areas of the county. A motion was made by Commissioner Sims and carried 5-0 to add two items to the agenda as noted above and to approve the agenda as adjusted. Commissioner Gentry asked if there was a Zoom link for the public to which County Manager, Heidi York said the meeting was being live streamed via You Tube as usual practice. Persons could click the Live link on the Commissioners’ web page to view the board meeting in progress. GETTING US STARTED: County Manager, Heidi York stated the budget retreat kicks off the budget preparation for upcoming fiscal year. She noted it is an informal setting for staff to share information and the Board to discuss its goals and priorities. Ms. York introduced Human Resources Director, Lisa Alston to lead the group in a team building activity. Ms. Alston led the group in a goal-setting activity using the five days of budget season for each commissioner to state a priority goal without repeating the same goals. Commissioner Gentry’s goal was to streamline the economic development process. Chairman Powell’s goal was to have better broadband connectivity. Vice Chairman Puryear’s goal was to keep the property tax rate flat. Commissioner Sims’ goal was to improve Person County school facilities. Commissioner Palmer’s goal was the airport. March 1, 2021 2 Ms. Alston presented the illustration of each commissioner’s goal listed on individual bricks all together represented a foundation for the next budget year. She noted the county’s shared vision served as the mortar to hold together the goals on the bricks and that staff of Person County also called Team Person County would do all it could to make the goals a reality. MID-YEAR FISCAL REVIEW AND MAJOR HIGHLIGHTS: Finance Director, Amy Wehrenberg introduced to the group her newly hired Assistant Finance Director, Melissa Jones. Ms. Wehrenberg proceeded to share the following presentation for a mid-year fiscal review: March 1, 2021 3 March 1, 2021 4 March 1, 2021 5 March 1, 2021 6 March 1, 2021 7 March 1, 2021 8 March 1, 2021 9 March 1, 2021 10 PROPERTY TAX REVENUE PREVIEW: Tax Administrator, Russell Jones shared the following presentation for property tax revenue preview: Mr. Jones explained that the State appraised was at an all time, but temporary high for current year, at $920,233,559 due to upgrades of substations and lines. He said he was advised by the State to go down from last year’s valuation of $845,688,750. Using valuation of $810m, or down $35m. County Manager, Heidi York added that Mr. Jones estimates conservatively as the State appraised values are received after the budget process and the county had no control over the state appraised values. Mr. Jones noted the machinery depreciation lowered equipment by $44 million and reporting for new equipment would not be filed until April 15, 2021. March 1, 2021 11 Mr. Jones that the fire district values were similar to the previous slide noting that the fire tax valuations do not include the City of Roxboro. March 1, 2021 12 Mr. Jones stated the state appraised revenues represented 20% to 22% of the county’s budget. Mr. Jones illustrated the loss of revenue with a tax rate change. March 1, 2021 13 Mr. Jones stated a change in the fire tax rate affects revenues. Mr. Jones said the tax office will mail notices with the reappraisal changes to property owners this week. He noted the residential values have increased; commercial values were hit harder in large urban area and not so much in rural areas March 1, 2021 14 APPOINTMENTS TO THE BOARD OF EQUALIZATION & REVIEW: Tax Administrator, Russell Jones requested the Board to appoint members of the Board of Equalization & Review to continue with its special Board of Equalization and Review. A motion was made by Commissioner Sims and carried 5-0 to nominate and appoint the following individuals to the Board of equalization & Review for a four-year term: Curtis Bradsher, Margaret Bradsher, David Newell, Sr., Jay Poindexter and Vice Chairman Puryear. Alternates: Commissioner Gentry and Commissioner Sims. Mr. Jones reminded the group of the 2-hour training session held by the NC Department of Revenue, which will be held virtually on either March 11 or March 18. Chairman Powell announced a brief break at 10:24am. The meeting was reconvened at 10:40am. PREVIEW OF FISCAL YEAR 2022 NEEDS: County Manager, Heidi York shared the following presentation to preview Fiscal Year 2022 Needs. Ms. York said the budget is one of the most important tasks the Board is faced with annually and is a great communication tool reflecting the Board’s priorities. She added she wanted to build a budget based on the Board’s priorities. Ms. York stated she and her budget team would be meeting individually with all county departments to review its capital and personnel needs. She will present her recommended budget in May with a balanced budget and hand off to the Board to make changes as deemed appropriate for adoption in June. March 1, 2021 15 March 1, 2021 16 Ms. York explained the County has roofing and window assessment for all county buildings as well as school facilities; from this assessment, staff will know and recommend the critical needs. Ms. York said Dr. Peterson, Person County Schools’ Superintendent asked how the Board would fund the $36M of identified priorities. Ms. York noted options included setting aside funding to chip away, i.e. $1M each year, or a larger amount for a financing, i.e. $7M, $10M, or the school preferred option for a Bond Referendum that requires voter approval for an even larger amount, i.e., $20M. Chairman Powell reminded the Board that the Board was tasked with maintaining the needs however the amount of the funding appropriated was at the discretion of the Board. March 1, 2021 17 Ms. York noted the health insurance increase was at a 30% increase but reduced to 14.46% due to restructuring the design of the plan and now incorporating a health saving account. The increase in the county’s self-insured plan is due to the performance of claims. March 1, 2021 18 Commissioner Gentry stated support to transition Person Industries from under county government to a private, non-profit. Chairman Powell asked if the transition to private operations should be included in the proposed Feasibility Study to which Ms. York said the feasibility study could be adjusted. Commissioner Sims noted he supports citizens not having to pay a drop off fee for recycling. March 1, 2021 19 IT Director, Chris Puryear and Assistant County Manager, Katherine Cathey provided a brief update for the current, completed fiber project noting the next steps for broadband accessibility included a study so that coverage maps can be updated and unmet need areas can be identified. This topic will be included on the Board’s next meeting agenda for March 15, 2021. Commissioner Gentry asked for the options for satellite access as well as new technologies be added to the survey. The group discussed the $100K funded by Republic’s solid waste contract for current fiscal year and will be recurring for community projects. Commissioner Gentry stated preference to make an impact for a significant project versus several small projects funding. Chairman Powell mentioned the need for roadside litter cleanup to which Ms. York stated there was also funding by Republic’s contract for this purpose as well. Vice Chairman Puryear suggested funding economic broadband and/or economic development with the $100K noting both were top goals. Ms. York asked the Board for direction to obtain an appraisal for Human Services building for purchase as the lease would be expiring in 2025. Vice Chairman Puryear advocated to use county owned property and not to renew the lease. Commissioner Gentry suggested to ask the building owner to have an appraisal completed at their expense noting her opinion that commercial property will experience a shift in values in the next six to eight months. Ms. York stated she listed on the slide county owned properties for which there was no business plan for the immediate future. The group discussed the County Farm that is land-locked that was obtained in an effort to protect future water supply. The parcel includes 281.56 acres with a tax value of $745,000. Commissioner Gentry stated the need to know if the Board should continue to hold onto this property to protect a water source and if the timber could be harvested. General Services Director, Ray Foushee said the last time timber was harvested, adjacent property owner, Willis Parker allowed the timber harvest to be completed across his property for free however, Mr. Parker indicated he would like to sell the County access through a lease or an easement. Ms. York provided the following handout explaining mandated versus discretional services as the Board considers it budget actions. March 1, 2021 20 March 1, 2021 21 FINANCIAL PLANNING FOR CAPITAL & DEBT AFFORDABILITY: Mr. Douglas 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 Needs and Debt Affordability alternatives: March 1, 2021 22 March 1, 2021 23 March 1, 2021 24 March 1, 2021 25 March 1, 2021 26 County Manager, Heidi York said by moving the schools’ CIP decisions to fall/winter, the Board could better plan for the following budget. Mr. Doug Carter said it takes time to put a system into place. He added by having a threshold of the County’s Unassigned Fund Balance diverted to the CIF, the CIF will grow to appropriate during budget time. March 1, 2021 27 Ms. York noted with $40M of school facilities’ deferred maintenance needs, the model will take into account priorities, the tax rate, debt, bond size, the value of a penny and timing. She further noted the financial policies would come before the Board for approval at an upcoming meeting. GOAL SETTING & PERFORMANCE MEASURES: County Manager, Heidi York provided the following handouts to aid a discussion of goal setting and performance measures. March 1, 2021 28 March 1, 2021 29 Ms. York returned to the goals that each commissioners stated during the team- building exercise and asked them to consider if they would like a larger population goal or smaller goals on a program level. The most important distinction is who would be accountable. She noted population goals cannot be assigned to one person, one department, one organization or one level of government. She further noted that for a prosperous economy, a large community-wide goal requires partnerships. o Streamline the County’s Economic Development Process – proposed task force to recommend public private partnerships to fund economic development and eliminate barriers o Better broadband connectivity – The Board would like accessibility to every county resident at affordable rates. Strategies to reach this goal would be to get service providers to expand infrastructure and the county could consider building more towers. The Board consented better broadband connectivity was attainable with significant progress over the three years. IT Director, Chris Puryear suggested to define high-speed internet and set a minimum speed requirement. o Keep the property tax flat – The Board consented to keep the tax rate flat as a priority for the upcoming budget. o Improve school facilities- The Board said addressing deferred maintenance needs was challenging to identify the full costs of all the needs. A bond referendum would be the best way to address this goals but a bond referendum would require voter support and would restrict future boards. o Airport – The Board noted goals for the airport included land acquisition, runway extension as well as strengthening, a hangar; an idea to lease or sell space for individuals (companies) to build their own hangars. March 1, 2021 30 TYING IT ALL TOGETHER: Assistant County Manager, Katherine Cathey summarized items discussed by the Board requiring follow-up:  Board would like an itemized financial details for the period of time last year and current year  Review services in general for Person Industries impending merger  Volunteer Fire Departments district maps on March 15, 2021  Broadband study, Star Link opportunity and fee constraints  One or two significant projects using the Republic community funding  Landfill roadside cleanup  Gathering information to renew or defer obtaining an appraisal on the Human Services Building - the consensus was to defer the appraisal but would like to know the owner’s asking price  Review original intent of the County Farm property to determine what is useable and what easement conditions look like  Create strategic goals to achieve in the short-terms through the budget process  Bullet proposed budget changes March 1, 2021 31 UPDATE FOR COUNTY DEBRIS REMOVAL: Vice Chairman Puryear added this item to the agenda for an update for county debris removal to see what options were available to assist residents. County Manager, Heidi York stated Person County was not eligible to receive any state assistance for debris removal. She offered to send a letter to the Governor requesting NC DOT’s assistance for debris removal on the state right of way noting it would be likely several months before the NCDOT can pick up the debris. Ms. York estimated a turnkey operator to haul and chip debris at the old landfill would cost $500,000. Emergency Management Director, Doug Young via telephone conference call said a couple of local service providers had reached out to him with interest noting the call range was $400,000 to $500,000. Vice Chairman Puryear said he would like to get the minimum costs in the next couple of days from local providers to haul to a central location; he said the Board could have a Special Called Meeting, if needed. General Services Director, Ray Foushee asked for clarification on the scope of work for the local providers to which the Board’s response was for local providers to pick up only already cut up debris on the roadside. BOARD TO ENCOURAGE SPECTRUM AND OTHERS TO IMPROVE INFRASTRUCTURE IN RURAL AREAS OF THE COUNTY: Vice Chairman Puryear requested staff to contact representatives of both Spectrum and Century Link to attend an upcoming board meeting, preferably in-person, to update the Board on future plans to improve infrastructure in rural areas of the county that was still unserved or underdeveloped. Assistant County Manager, Katherine Cathey said she has spoken with Spectrum recently and would request an update at a Board meeting noting the maps needs to be updated for the forthcoming survey. Vice Chairman Puryear stated he would like to have a resolution on the March 15, 2021 meeting agenda to encourage Spectrum and Century Link to improve infrastructure in rural areas of the county. March 1, 2021 32 CLOSING REMARKS: Chairman Powell and Vice Chairman Puryear commended staff for a well-executed retreat that was informative setting the tone for the budget process. ADJOURNMENT: A motion was made by Commissioner Sims and carried 5-0 to adjourn the meeting at 1:52pm. _____________________________ ______________________________ Brenda B. Reaves Gordon Powell Clerk to the Board Chairman