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02-03-2020 Meeting Minutes BOC February 3, 2020 1 PERSON COUNTY BOARD OF COMMISSIONERS FEBRUARY 3, 2020 MEMBERS PRESENT OTHERS PRESENT B. Ray Jeffers Heidi York, County Manager David B. Newell, Sr. (absent) Gordon Powell Jimmy B. Clayton Kyle W. Puryear The Board of Commissioners for the County of Person, North Carolina, met in regular session on Monday, February 3, 2020 at 9:00am in the Transit and Development Building located at 303 S. Morgan Street, Roxboro. This meeting designated for the Board Retreat focused on Fiscal Year 2020-2021 Budget. Chairman Jeffers called the meeting to order. Vice Chairman Newell was absent. DISCUSSION/ADJUSTMENT/APPROVAL OF AGENDA: A motion was made by Commissioner Puryear and carried 4-0 to approve the agenda, as presented. DISCUSSION/ADJUSTMENT/APPROVAL OF CONSENT AGENDA: A motion was made by Commissioner Puryear and carried 4-0 to approve the Consent Agenda with the following items: A. Report of Unpaid Taxes, and B. Advertisement of Unpaid Real Estate Taxes STRATEGIC PLAN PRIORITIES: County Manager, Heidi York led the Board in discussion related to its Fiscal Year 2021 budgeting priorities as well as facilitated the Board’s discussion in the development of an updated Strategic Plan and/or an Action Plan. Ms. York shared the following slides to guide the discussion: February 3, 2020 2 February 3, 2020 3 February 3, 2020 4 Ms. York stated the PCC STEM/advanced facility feasibility study costed $25K versus the budgeted $54K noting those results are forthcoming. In addition, the economic development opportunities and target sectors analysis budgeted at $23K was not completed as the EDC redirected those funds be used for associated costs for a Shell Building. February 3, 2020 5 It was the consensus of the Board to further discuss the Strategic Plan objectives following the retreat presentations. February 3, 2020 6 Chairman Jeffers announced a break at 9:17am. At 9:29am, Chairman Jeffers asked the Tax Administrator to talk to the group about Revenues as they waited for the Auditors to arrive. REVENUES: Tax Administrator, Russell Jones provided the following information to the group related to the County’s Revenues: Mr. Jones stated the 2020 budget was $4.210b, actual $4,214,679,296 or over by .11%. He noted some growth, up $15M from budget, or $10M from actual. Mr. Jones further noted that real estate growth was just over $45 million, same as last year; M&E went down by $16M but adding $13M as a placeholder for Polywood and the OBX Hemp. February 3, 2020 7 Mr. Jones stated the State dropped by $11,461,224 two years ago, $32M last year and he was holding $32M for potential losses for next year. The Net Tax Base is up from last year at $4.210b, now $4.225b, growth of 15M, plus $385M (up from 375M DMV and revenues $2,809,095 (growth by 72,964 in revenue) @ 99.95%. When asked by the Board about the state appraised values in 2030 when and if the power coal plants close, Mr. Jones stated the values following closure had many variables and was unknown at this time however, he planned to continue to plan for potential losses until new information was known. February 3, 2020 8 Mr. Jones illustrated the Fire District Value Changes noting the 2020 budget was $3.569b, actual $3,569,386,776 or over by .01% (No net growth). He noted Real Estate growth was just under $37M, compared to last year at $41 million; M&E went down slightly but further noted he added $13M as a placeholder for Polywood and OBX Hemp. Mr. Jones said Business Machinery would be listed by April 15th. Mr. Jones stated the Net Tax Base = slight growth= $3.587b comparted to $3.569b (growth of $18 Million) plus $310 million in DMV and revenues at $85,207 @ 99.95% (up from $75,000). February 3, 2020 9 Mr. Jones noted that last year one-penny equaled $447,570 and next year the value will be $450,418. Last year one-penny on the fire tax was $373,192 and next year the value will be $380,717. Mr. Jones said 2.75 cents (Fire Tax) will generate $1,046,971.75. February 3, 2020 10 ELLIOTT DAVIS, PLLC, AUDITOR’S PRESENTATION: Mr. Tom McNeish, Government Specialty Group Leader with Elliott Davis, PLLC provided the following information related to the Financial Statement Audit Summary: February 3, 2020 11 February 3, 2020 12 February 3, 2020 13 February 3, 2020 14 Commissioner Clayton commented that the Fund Balance reserve for the County was set 10% over the recommended to be able to take care of emergencies. The Comprehensive Annual Financial Report for the Year Ended June 30, 2019 was handed out to the group. February 3, 2020 15 DEBT MODEL PRESENTATION: 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 advice for Capital Needs and Debt Affordability alternatives: February 3, 2020 16 February 3, 2020 17 February 3, 2020 18 February 3, 2020 19 February 3, 2020 20 While discussing the project needs and the timing schedule, County Manager, Heidi York said the Schools’ needs are significant, approximately $35M; she said she would be meeting with the Schools’ Superintendent, Dr. Rodney Peterson to discuss prioritizing the needs noting it was not reasonable that the County could fund $35M in one year nor the school’s staff to implement such spending amount in one year. Ms. York reminded the group that Piedmont Community College will have a significant request also noting the plan for an Advanced Manufacturing Facility, as well as, Economic Development Commission’s request for a Shell Building. Until the data is received for the prioritization, the model cannot be completed for recommendations. Chairman Jeffers asked the Finance Director what percentage of debt did the County have currently to which she noted it was at 4%. The not to exceed percentage of debt, per the Local Government Commission is 15%. Draft Budget, Accounting and Fund Reserve Policies were introduced and a brief overview was provided to the Board. Ms. York stated the policies would be coming before the Board at a future meeting for approval. Included in the draft policies were budget process and policies, accounting policies for Fund Reserves. When reviewing the next steps and given everyone is learning the new process for the model, Mr. Carter stated the full debt affordability available only after receipt of the capital information and the Board’s approval of project priorities, the timing will align in the fall/winter of 2020. Commissioner Puryear asked about improving the bond rating. Mr. Carter stated once the financial plan was in place, Person County could invite the rating agency to review the rating noting the goal for a solid AA desired rating. Chairman Jeffers recognized, Dr. Peterson, Dr. Allen and Mr. King, present in the audience representing Person County Schools. Dr. Peterson stated the requirement to comply with House Bill 90 noting Person County elementary schools were at 97% capacity. Chairman Jeffers announced a brief break at 11:19am. The meeting reconvened at 11:28am. February 3, 2020 21 FINDINGS FROM THE YMCA FEASIBILITY STUDY: County Manager, Heidi York introduced Ms. Li Li, of FourSquare Research, Inc. to present the findings from the YMCA Feasibility Study on opportunities for a new Person County YMCA branch of the Danville Family YMCA to the Board of Commissioners. Ms. Li Li is the Managing Partner for FourSquare Research, Inc. and she is responsible for project direction, client relations, and business development. Also present was Ms. Sarah Folmar, CEO and Mr. Dustin Whittle, Assistant Executive Director for the Danville Family YMCA. The report that was shared with the Board is hereby incorporated into the minutes by reference. The report provided forecasts for new membership units for a new Person County Family YMCA at the proposed locations with detailed information on demographics, psychographics, and program interest of prospective members. Following below is the Executive Summary of Market Study referenced above. February 3, 2020 22 February 3, 2020 23 February 3, 2020 24 February 3, 2020 25 February 3, 2020 26 February 3, 2020 27 Chairman Jeffers expressed his justification for funding the feasibility study for the data to confirm the community cannot support an indoor pool but would like to see expanded recreational opportunities. Chairman Jeffers stated his appreciation to finally answer the people that voted in the 2008’s general election for a senior and recreational center with the results provided by the study. He added he would be taking the report to share with the Recreation Board and felt it relevant to the economic development of future recruitment of industry workforce and the offerings for the workforce and the families, especially for the teenagers of the county. Commissioner Puryear asked Ms. Li Li if she saw government subsidizing the costs of operating such a facility. Ms. Li Li and Ms. Folmar stated the YMCA’s are funded through memberships, donations, program fees, fundraising and scholarships. Ms. Li Li added that although governments are independent of the YMCA, where there is a population challenge, she has seen where the local community college, schools, hospital, library, churches and other agencies and private developers will come together for the needed recreational amenities for the community. Commissioner Powell asked about the projected costs of a YMCA. Ms. Folmar told the group that the YMCA of Danville is a 50,000 sq. ft. facility that cost $15M of which was all donated by many foundations in Danville. The annual operating costs is $1.5M, all funded with memberships, program fees and donations. February 3, 2020 28 MID-YEAR FISCAL UPDATE: Finance Director, Amy Wehrenberg provided the Board with a Mid-Year Fiscal Review as follows: February 3, 2020 29 February 3, 2020 30 February 3, 2020 31 Commissioner Puryear asked Ms. Wehrenberg if any debt would come off this fiscal year to which she said no. She said there is debt expected to be retired next fiscal year however the expectation is that debt will added with the capital requests from the Schools and Piedmont Community College. February 3, 2020 32 PREVIEW OF NEEDS IN FY2020-2021: County Manager, Heidi York shared the following presentation with the Board highlighting the Preview of Needs for Fiscal Year 2021 for both Capital and Operating as known at this time. Ms. York stated she has received an amended Capital request from Person County Schools and was anticipating an amended Capital request from Piedmont Community College. February 3, 2020 33 February 3, 2020 34 February 3, 2020 35 Ms. York made the Board aware of the critical need nationwide, and in Person County, of recruiting and retaining talented emergency services personnel. She noted that she would be bringing a discussion to the Board at its upcoming meeting on February 18, 2020 after staff’s review of options. Ms. York further noted EMS is struggling with staggering overtime costs as vacancies are being fulfilled through employee’s overtime hours. Related to the new fiscal year’s need for full time positions, Ms. York updated the Board that she has received eight requests for full time positions from Environmental Health, PATS, Inspections, GIS, the Jail and DSS. If all eight positons are funded, the costs are projected at $450,000. In addition, a Fire Marshal position that was recently added appropriating another $58,000 in the new fiscal year budget. Ms. York stated an operating cost request for the City of Roxboro’s Western Interceptor at $500,000 could be funded through the County’s Water and Sewer Fund that currently has $1M, if approved by the Board. Commissioner Clayton asked Ms. York to speak to the request of Piedmont Community College for an Advanced Technology Center; Ms. York stated the County funded a feasibility study for this project noting the request was for new land acquisition with the construction of a new building to support existing industry and as a recruiting tool to train the workforce for advanced technology services. Ms. York anticipated the upcoming budget to include smaller, critical capital needs allowing the Debt Service Model to be developed with time to review financing options to bundle projects for later in the new fiscal year. February 3, 2020 36 BUDGET WRAP-UP: County Manager, Heidi York stated staffs’ intent to develop a budget reflecting the priorities of the Board and align those needs with the strategic plan. She reminded the Board of the Strategic Plan objectives as adopted in May 2019 and asked the group if the objectives are still relevant: 1. Improve School Facilities 2. Implement a Pre-K through 14 Workforce Development Plan 3. Support Economic Development’s Strategic Plan 4. Implement Quality of Life Programs Ms. York stated she would update the Strategic Plan Strategies for those that were accomplished and to add any new strategies the Board desired. She made the assumption that the Board would keep the same property tax rate and fire tax rate as adopted in 2019 to keep the revenues flat. Chairman Jeffers stated his desire to strategize fire protection in the County, whether the options included paid firefighters or looking what other counties are doing to assure the community of fire services. Ms. York stated the EMS Director, Doug Young was compiling a plan for options to cover the Woodsdale fire district and suggested to engage the Office of State Fire Marshal and the County’s forthcoming Fire Marshal to develop a comprehensive plan to support the volunteer fire departments (VFDs) moving forward. Ms. York said the fire tax was generating a little more than the $1M (current appropriation) to the VFDs noting the extra revenue over the $1M could be placed in a Fund Balance for such response to emergency needs. Chairman Jeffers also stated preference to strategize a plan for the power plant impacts for when and if the plants are closed. Commissioner Puryear stated his idea to identify spending for the ten years prior to the projected loss of revenue. Chairman Jeffers requested to research after school programming and suggested following up with Tanya Evans of Duke Energy related to Boys & Girls’ Club advocacy programming for youth that is currently taking place in Granville, Vance and Warren counties at elementary schools. Chairman Jeffers recommended adding strategies that match the Economic Development Commissions’ priorities that were recently updated. February 3, 2020 37 CLOSING REMARKS AND ADJOURNMENT: Chairman Jeffers remarked that the budget work was definitely cut out for the Board with all the needs that have been noted thus far. Chairman Jeffers asked the group about allocating $2,000 to the Healthy Personians advisory group to promote the 20th anniversary; he noted he would place on an upcoming agenda to have more information about the role of the group. Chairman Jeffers stated the DSS board has noted impact to DSS services and funding due to the NC budget not being passed. Commissioner Clayton reminded the group of the Upper Neuse meeting on March 12, 2020 that would be informative. Commissioner Clayton stated he attended a recent Kerr Tar Transportation Committee noting the Flat River bridge was now open; he added that the DOT suspended funding was now reinstated which puts the Boulevard project back into the schedule. County Manager, Heidi York said she would keep the Board updated related to the Financial Advisory Debt Model capacity following the meeting with the Schools’ staff. Chairman Jeffers asked his fellow commissioner to complete the retreat evaluation and return to the Manager. A motion was made by Commissioner Puryear and carried 4-0 to adjourn the meeting at 1:20pm. _____________________________ ______________________________ Brenda B. Reaves B. Ray Jeffers Clerk to the Board Chairman February 3, 2020 38 This page was intentionally left blank.