BOC Minutes February 5 2018approve
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PERSON COUNTY BOARD OF COMMISSIONERS FEBRUARY 5, 2018
MEMBERS PRESENT OTHERS PRESENT
Tracey L. Kendrick Heidi York, County Manager
Gordon Powell
Jimmy B. Clayton Brenda B. Reaves, Clerk to the Board
Kyle W. Puryear
B. Ray Jeffers
The Board of Commissioners for the County of Person, North Carolina, met in
regular session on Monday, February 5, 2018 at 9:00am in the Timberlake Public Safety
Satellite Facility located at 387 Helena Moriah Road, Timberlake for the purpose of
holding its annual retreat focusing on Fiscal Year 2018-2019 Budget.
Chairman Kendrick called the meeting to order and welcomed the group to the
annual Board retreat noting the retreat provides an opportunity to give direction to the
County Manager for the upcoming recommended budget.
County Manager, Heidi York told the Board the retreat was a time for staff to share
relevant information related to fiscal projections. Ms. York encouraged the Board to
participate and feel free to ask questions in an informal manner throughout the day.
DISCUSSION/ADJUSTMENT/APPROVAL OF AGENDA:
It was the consensus of the Board to start off the retreat with the County Manager’s
presentation for Budget Priorities with the annual audit presentation to follow.
A motion was made by Vice Chairman Powell and carried 5-0 to approve the
agenda.
FISCAL YEAR 2018-2019 BUDGET PRIORITIES:
County Manager, Heidi York asked the commissioners to consider their budget
priorities for Fiscal Year 2019 as she provided the following presentation:
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Ms. York stated the FY2018 budget was $66M; per category Mandated/Funding
equated to 10% or $6.6M, Mandated/Discretionary equaled 67% or $44M and
Discretionary Funding was 23% or $15M.
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Commissioner Jeffers stated his priorities to be the Volunteer Fire Departments
(VFDs). He also noted a need for a portion of the leftover mental health funding to be used
for a pilot program to which Assistant County Manager, Sybil Tate said the Sheriff was
implementing a program that would offer inmates onsite teleconference counseling once a
week. Vice Chairman Powell added that Cardinal Innovations will have additional funding
resources available to counties through grant application. Commissioner Jeffers
recommended the County to find community partners as resources related to the opioid
crisis due to its impact with the County’s eligible workforce and child protective services.
Commissioner Clayton noted the Boulevard project valued at $32M had been
approved by NC DOT. He noted the graduation rate in 2016-2017 was 76.3% and Person
County’s local teacher supplement ranked 11th in the state.
Vice Chairman Powell stated of the last 13 years of local funding to the schools,
one of those years included a 2% cut and seven years resulted in flat funding. He said this
was not sufficient funding for employees and buildings even if student enrollment has
decreased. Vice Chairman Powell noted the Economic Development Commission’s #1
goal was education. Vice Chairman Powell also asked for staff to differentiate and publish
the local and sales tax contributions associated with school debt.
Commissioner Jeffers noted the possibility for future need of additional parking
space at the Senior Center. He also told the group of an idea for a Boys and Girls Club for
afterschool hours.
Chairman Kendrick asked staff to review the general statute related to cutting the
board of commissioners’ salary and health benefits, which altogether was $99K.
Commissioner Puryear asked staff to review having access to an attorney on an on-
call basis versus the contracted basis which was budgeted at $59K.
Ms. York asked for the Board to prioritize the categories for her upcoming budget
planning. It was the consensus of the Board to keep public safety as the #1 priority, move
education to the #2 priority, #3 economic development, #4 quality of life and #5
government efficiency.
Chairman Kendrick announced a brief recess at 9:58am; the meeting was
reconvened at 10:05am.
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PRESENTATION OF THE ANNUAL AUDIT:
Ms. Tara Roberson of Winston, Williams, Creech, Evans, & Company, LLP,
Certified Public Accontants, presented the following June 30, 2017 annual Audit:
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Ms. Roberson summarized that Person County has received an unmodified and
clean opinion for its June 30, 2017 financial statement and compliance audits. She noted
the opportunity to strengthen internal controls and operating efficiency with suggestions
submitted to applicable agencies.
The Board praised the Finance staff for achieving the Certificate of Excellence in
Financing Reporting and the Tax Office for its exemplary collection rate.
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REPORT OF UNPAID TAXES:
Russell Jones, Tax Administrator noted General Statute 105-369(a) required that
he report to the Board the amount of unpaid 2017 taxes that are a lien on real property
during the first meeting in February. Mr. Jones stated this report was simply a check point
for the Board for the progress that the Tax Office was making on collections and a way to
alert the Board if collections are down.
As of January 24, 2018, Mr. Jones indicated the collection rate was 91.88 % with
unpaid 2017 taxes at $1,980,541. Mr. Jones said the Tax Office continually works to
improve the collection rate and that on February 2, 2018 the collection rate was at 94.96%.
Mr. Jones asked the Board to accept the report noting no motion was needed.
It was the consensus of the Board to accept Mr. Jones’ report as presented.
ADVERTISEMENT OF UNPAID REAL ESTATE TAXES:
Russell Jones, Tax Administrator stated a motion was required to order the
advertisement and set the advertisement date for delinquent 2017 real property taxes. Mr.
Jones said the Tax Office would like for the date to be March 3, 2018 noting the newspaper
advertisement was required under General Statue 105-369(c) and can be placed anytime
between March1st and June 30th. Mr. Jones added that this was a great collection tool and
the sooner the County advertises, the better result for the collection rate. Mr. Jones noted
the cost of the advertisement would be charged to the delinquent real estate bills.
A motion was made by Commissioner Puryear and carried 5-0 to set the
advertisement date for delinquent 2017 real property taxes for March 3, 2018.
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AD VALOREM & VEHICLE TAX REVENUES:
Russell Jones, Tax Administrator shared the following presentation on the County’s
Ad Valorem & Vehicle Tax Revenues:
Mr. Jones said for the current tax year, FY2018, the largest part of the levy is real
property (land and buildings), then state appraised property at just over 21% percent, then
machinery (business equipment). DMV, shown as an additional revenue source, represents
8%.
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Mr. Jones noted the State appraised property was not available until September; the
equipment number would not be available until late April. He further noted there was
$32M as compared to $17M in new construction which equated to .60% growth, mostly
due to residential construction.
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Mr. Jones showed a 10-year span, real property value changed from $2.833B to
$2.865B, $32M in growth.
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For the past 11 years, the tax rate has remained unchanged at $.70 per $100 in
property value, i.e., a $100,000 house value equates to $700 in county property taxes
annually. The green highlights the reevaluation year.
For FY2019, one penny will generate $445,023. For FY2018, one penny was worth
$436,110.
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FISCAL REVIEW & CAPITAL PROJECTS:
Finance Director, Amy Wehrenberg and Assistant Finance Director, Laura Jensen
provided an overview of the County’s Fiscal Review and Capital Projects:
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The Early College pod is estimated to have a total cost of $415,000 over four years.
Chairman Kendrick asked staff to suggest a metal frame building on a concrete slab as a
cheaper solution.
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Assistant County Manager, Sybil Tate noted training for the VIPER radios will
occur soon. The large fiber contract was awarded to Utiliplex of Morganton.
Commissioner Clayton asked his fellow board members to contact Representative Larry
Yarborough for support to request legislation for the state to relinquish the state-owned
tower located at Mt. Tirzah to Person County so that communications equipment can be
allowed to enhance services for citizens.
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Commissioner Clayton recognized the Kerr Tar local government jurisdictions that
supported the Airport Runway Extension Program.
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Chairman Kendrick announced a brief break at 11:33am; the meeting was
reconvened at 11:45am.
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PREVIEW OF NEEDS IN FY2019:
County Manager, Heidi York
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Tax Administrator, Russell Jones clarified the different amount of the value of one
penny: for FY2018, one penny equaled to $436,110, for FY2019, one penny equals to
$445,023 and for a fire district tax, one penny’s value is $368,444. Mr. Jones noted a fire
district tax can only be implemented on June 30 per general statute. He further noted to
implement a fire district tax, maps must be published and after four weeks, a public hearing
must be held. Mr. Jones stated unless the City of Roxboro makes a resolution to be
included in the county fire tax, the County has no jurisdiction to include the city. He added
that should the City desire to be included in the fire district and adopt a resolution, the
Board of Commissioners would set the fire district tax annually and have authority over
the appropriation of the funds received by such tax. Ms. York stated the City Manager has
not addressed such fire tax with Roxboro City Council. In terms of establishing a Fire
Commission, Mr. Jones explained its role would be an advisory only.
Commissioner Jeffers asked the costs associated with the County’s contract with
the City of Roxboro to provide fire services to county residents. Ms. York responded the
contract value is at $381,000 with a 2% increase due in the upcoming budget which will
take it up to approximately $389,000; she noted the VFDs request on behalf of the City of
Roxboro was $393,000.
Vice Chairman Powell proposed setting a baseline benchmark funding of $1M
(inclusive of the current funding of $669,000) for VFDs in the upcoming budget along with
a resolution of support to VFDs on an ongoing basis for a 2% increase every other year
demonstrating the unquestionable support of county commissioners. In turn, he asked the
VFDs and its constituents within the districts support the one-quarter cent sales tax and
promote such within the communities.
Commissioner Jeffers asked Vice Chairman Powell for the next step should the
quarter-cent sales tax referendum be voted down. Vice Chairman Powell said they would
have to find another plan noting he has heard much support for the sales tax option over
raising property taxes. Commissioner Puryear stated his opposition to any tax increase.
Commissioner Jeffers advocated to have a designated fire tax and offset the
property tax, i.e., .032 cents fire tax, and lower the property tax rate from .70 cents by .026
cents to 67.4 cents per $100 valuation. Commissioner Jeffers said the VFDs requested
more funding in a designated fire fund, outside the General Fund noting a fire tax nor a
resolution of support would not be binding to a future board. Ms. Tate noted to offset the
additional funding .014 cents would be needed without a cut to the General Fund, or, as an
example lower the property tax rate by .014 cents with a .032 fire tax. Commissioner Jeffers
asked staff to put the two proposals back to the Board at its March 19, 2018 meeting.
Ms. York stated she would have to propose a budget that sets aside a Fund Balance
appropriation for either of the options on the table for the VFDs and once revenues are
collected, whether sales tax or fire tax, a budget amendment to reimburse the Fund Balance.
She confirmed the two proposals will be on the agenda for the Board’s March 19th meeting.
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Ms. York stated the Board has shown interest in possibly adding a new position for
an Economic Agricultural position at an estimated cost of $50,000.
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Ms. York asked the Board if there were any other items to be on the radar. She
added that the potential sale of Home Health and Hospice would impact both revenues and
expenditures after the budget was adopted noting a budget amendment would be required.
Commissioner Jeffers suggested consideration of additional funding to be
appropriated to the Juvenile Crime Prevention Council for new programming for a Boys
and Girls Club.
Chairman Kendrick stated interest in a Request for Proposals for the County Office
Building to increase energy efficiency and climate control.
BUDGET WRAP-UP:
County Manager, Heidi York asked the Board if more information was needed by
staff to connect the priorities with the needs. She noted Public Safety and Education were
the top two priorities of the Board and the desire to align the funding to match the top two
priorities.
CLOSING REMARKS & EVALUATION:
County Manager, Heidi York asked Board members to complete the retreat
evaluation and return to staff.
Chairman Kendrick thanked staff for the pertinent information and efforts for a
successful retreat, and to the community for coming out to support the budget process as
well as the commissioners for staff direction on preparing the budget. Commissioner
Jeffers stated appreciation to the County’s 400 employees as they ask for more, receive
less than they asked for, and they spent less than what was given to them.
ADJOURNMENT:
A motion was made by Commissioner Jeffers and carried 5-0 to adjourn the
meeting at 12:45pm.
_____________________________ ______________________________
Brenda B. Reaves Tracey L. Kendrick
Clerk to the Board Chairman