BOC Minutes January 20 2015January 20, 2015
1
PERSON COUNTY BOARD OF COMMISSIONERS JANUARY 20, 2015
MEMBERS PRESENT OTHERS PRESENT
Kyle W. Puryear Heidi York, County Manager
David Newell, Sr.
B. Ray Jeffers Brenda B. Reaves, Clerk to the Board
Jimmy B. Clayton
Tracey L. Kendrick
The Board of Commissioners for the County of Person, North Carolina, met in regular
session on Monday, January 20, 2015 at 9:00 am in the Kirby Theatre located at 213 N. Main Street,
Roxboro for the purpose to hold a Board Retreat focusing on the Fiscal Year 2015-2016 Budget.
Chairman Puryear 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.
DISCUSSION/ADJUSTMENT/APPROVAL OF AGENDA:
Chairman Puryear stated the Sheriff has requested the Board to consider an item for a
Governor Crime Commission Grant for 2015-2016 to be added to the end of the Retreat Agenda.
Chairman Puryear noted his desire to recess the Board retreat at approximately 11:15 am to allow
him and any Board members interested in attending the Chamber of Commerce’s ribbon cutting at
11:30 am.
A motion was made by Commissioner Kendrick and carried 5-0 to approve the agenda
with the adjustments recommended by Chairman Puryear.
County Manager, Heidi York told the Board the retreat is a time for staff to share relevant
information related to fiscal projections locally, state-wide and nationally. Ms. York asked the
Board to participate and feel free to ask questions in an informal manner throughout the day.
STATE LEGISLATIVE UPDATE:
County Manager, Heidi York introduced the first speaker on the retreat agenda. Ms. York
stated Ms. Rebecca Troutman is in her 24th year with the North Carolina Association of County
Commissioners, a nonprofit advocacy organization of all 100 counties. Ms. Troutman serves as
Intergovernmental Relations Director and is a registered lobbyist with the North Carolina General
Assembly. She represents county interests on issues related to human services, personnel and
retirement, state/county budgets, and tax and finance and is responsible for analyzing tax, finance,
and expenditure impacts of proposed legislation and administrative changes on county
governments. Key legislative accomplishments include the County Medicaid Relief Swap of 2007,
that ended county participation in Medicaid services costs, and the 2012 Health and Human
Services Consolidation, authorizing all counties to consider restructuring health and human
services delivery.
Ms. Troutman, Intergovernmental Relations Director for the NC Association of County
Commissioners gave the Board a member benefits brochure for Person County, introduced Mr.
Hugh Johnson, Government Relations Coordinator and presented the following State Legislative
Update:
January 20, 2015
2
January 20, 2015
3
January 20, 2015
4
Vice Chairman Newell asked the per capita income for Person County. Annual reporting
indicates per capital income for Person County is $25,284.
January 20, 2015
5
January 20, 2015
6
January 20, 2015
7
Vice Chairman Newell asked if the Board had the authority to eliminate the 2% sales tax
levied to which Ms. Troutman replied affirmatively.
January 20, 2015
8
Ms. Troutman reiterated that the federal non-recurring funding used for state
appropriations for the current fiscal year would need to be replaced with state funding in the next
budget. Ms. Troutman stated the General Assembly would likely view the April 15th proceeds
before initiating a state sales tax restructure.
January 20, 2015
9
January 20, 2015
10
Commissioner Jeffers stated the following are the NC Association of County
Commissioners’ 2015-2016 legislative goals as adopted at the Association’s Legislative Goals
Conference January 15-16, 2015:
1. Support continued state funding of Medicaid and support efforts by the state to provide
healthcare access for all citizens.
2. Seek legislation to restore the statutory requirement that 40% of the net lottery proceeds be
allocated to counties for school capital needs and increase the annual appropriation of
lottery funds until the 40% allocation is restored.
3. Seek legislation to repeal the statutory authority under N.C. G.S. 115C-431(c) that allows
local school boards to file suit against a county board of commissioners over county
appropriations for education.
4. Oppose any shift of state transportation responsibilities to counties.
5. Oppose unfunded mandates and shifts of state responsibilities to counties.
FEDERAL AND STATE ECONOMIC OUTLOOK:
County Manager, Heidi York introduced Mr. Michael Wolf, an economist with Wells
Fargo Securities, covering both U.S. and regional economies. Based in Charlotte, N.C., Mr. Wolf
writes indicator reports, special commentary, and contributes to the company’s Weekly Economic
& Financial Commentary. Prior to joining Wells Fargo, Mr. Wolf worked as a regional and
international economist at Moody’s Analytics. Additionally, he measured trends in compensation
as an economist for the Bureau of Labor Statistics. Mr. Wolf has a master’s degree in international
economic policy and statistics from Columbia University and Baruch College, respectively. He
also holds a bachelor’s degree in economics from the University of Maryland and is a member of
the National Association of Business Economics and Charlotte Economics Club.
Mr. Wolf provided the Board with the following Economic Outlook presentation:
January 20, 2015
11
January 20, 2015
12
January 20, 2015
13
January 20, 2015
14
January 20, 2015
15
January 20, 2015
16
January 20, 2015
17
January 20, 2015
18
January 20, 2015
19
January 20, 2015
20
January 20, 2015
21
January 20, 2015
22
January 20, 2015
23
January 20, 2015
24
January 20, 2015
25
January 20, 2015
26
January 20, 2015
27
Mr. Wolf noted NC’s percent in real GDP for 2012-2013 was 2.3%.
January 20, 2015
28
Mr. Wolf stated NC’s labor force participation rate was 60.2% as of November 2014.
January 20, 2015
29
January 20, 2015
30
Mr. Wolf stated there have been huge gains in professional technology services.
January 20, 2015
31
January 20, 2015
32
January 20, 2015
33
Chairman Puryear called for a brief break at 10:41am. Chairman Puryear reconvened the
meeting at 10:49 am.
AUDIT REPORT & FUND BALANCE:
Mr. James P. Winston, II, an audit partner of Winston, Williams, Creech and Evans & Co.,
LLP presented the Board the following June 30, 2014 Audit Presentation:
January 20, 2015
34
January 20, 2015
35
January 20, 2015
36
Mr. Winston clarified the Final Budget General Fund Expenditures was $54,232,552 as the
number did not fit on the slide appropriately.
January 20, 2015
37
Mr. Winston clarified the Final Budget Appropriated Fund Balance was $3,727,949 and
there was no actual funding.
January 20, 2015
38
January 20, 2015
39
Mr. Winston noted the end result of 18.41% General Fund Unassigned Fund Balance
complies with the County’s policy of 18%. Mr. Winston further noted the minimum General Fund
Unassigned Fund Balance is 8% per the Local Government Commission.
January 20, 2015
40
Mr. Winston stated the tax collection rate of 98.40% is above the state average. Mr.
Winston noted the vehicle tax collection rate was at 97.75% which included the one-time additional
four months of revenues.
Board members were given a draft copy of the Comprehensive Annual Financial Report
for the year ended June 30, 2014 that includes an independent auditor’s report and financial reports.
January 20, 2015
41
Finance Director, Amy Wehrenberg gave the following Fund Balance presentation:
January 20, 2015
42
Ms. Wehrenberg directed the Board’s attention to page 29 of the Comprehensive Annual
Financial Report and outlined the many fund balances listings.
January 20, 2015
43
Ms. Wehrenberg noted an anticipated drop in next year’s fund balance appropriation due
to the debt (schools) coming off the books.
January 20, 2015
44
January 20, 2015
45
January 20, 2015
46
Ms. Wehrenberg noted the proposal to set a policy setting the Unassigned Fund Balance to
20% was just a proposal for the Board to consider noting the County would need approximately
$750,000 to meet that target from the current status of 18.41%. Ms. Wehrenberg stated 20% would
equate to over $10M. County Manager, Heidi York added that the Board has relied on Fund
Balance for recurring expenses the last few years and a policy would set guidelines for best
practices to ensure steady growth.
Following discussion from all Board members related to the Unassigned Fund Balance
proposed policy and whether to keep at its current 18% or increase to 20%, Chairman Puryear
suggested holding the discussion to setting policy for the Unassigned Fund Balance until after the
Capital Improvement Plan (CIP) discussion later in the day.
Chairman Puryear requested the Board to recess for the lunch break noting an opportunity
for an informal tour of the newly renovated Kirby Rebirth upstairs was available for Board
members if they had not seen the space.
A motion was made by Commissioner Jeffers and carried 5-0 to recess the meeting at
11:54 am until 1:30 pm.
Chairman Puryear called the recessed meeting to order at 1:30 pm. County Manager, Heidi
York requested the Board to participate in the first of several straw polls for the day. The first straw
poll related to the information covered in the Finance Director’s presentation about Fund Balance.
It was the consensus of the Board to continue the retreat with the presentation from the Tax
Administrator, Russell Jones.
January 20, 2015
47
AD VALOREM AND VEHICLE TAX REVENUES:
Tax Administrator, Russell Jones told the group that during Fiscal Year 2014-2015, the
current tax year, the biggest players are, of course, real property (land and buildings) at 67.58%,
then state appraised property (Duke Energy) at 21.13%% percent, then machinery (business
equipment) at 9.48%. Mr. Jones confirmed the DMV has transitioned to the new NCVTS system,
and it is now collected by NCDMV local tag offices.
January 20, 2015
48
Mr. Jones stated the data on the real property is actual noting the State appraised figure
comes in September, the equipment number is available late April, and motor vehicles has 15
months of history.
Mr. Jones noted real property value continued to see $9 million in growth (from 2.774b
to 2.783b.)
January 20, 2015
49
Mr. Jones noted there may be some additional equipment at Eaton, GKN, and Spuntech
that was not in place January 1, 2014 but this is unknown at this time.
January 20, 2015
50
January 20, 2015
51
Mr. Jones stated the numbers are comparing predictions for the estimated ending levy for
2014, and not the budgeted levy of $3.960 billion for 2014 (for 2014-2015 ending levy as opposed
to budgeted is 1% higher). Mr. Jones noted the proposal levy value for 2015-2016 is $4 billion,
which is an increase of $40 million from budgeted levy in 2014-2015 of $3.96 billion.
January 20, 2015
52
The new NCVTS system started with September 2013 renewals. While some citizens
renewed early (July $1,600 and August $23,000 in revenues), most renewed by October 15 (grace
period) with some renewed after the grace period. With only 15 months of data, Mr. Jones felt that
this revenue source will increase from the budget FY15 of $1,920,000, to a budget of $2,100,000
($175,000 per month versus $160,000 in current budget) for FY16.
Mr. Jones stated for FY15, one penny generated $410,051 at 97.25%. One penny generates
more for FY16, due to increase in tax levy and DMV (+$8,214 per penny) noting any changes in
the tax rate will only affect vehicles from October-June, due to renewal notices already mailed for
preceding months.
January 20, 2015
53
January 20, 2015
54
Option 1: General Fund shows the way the fire departments were funded for the current
year, FY15 and the potential funding for FY16.
Mr. Jones noted power producing plants are excluded from a fire tax by NC General
Statute. DMV renewals for July-August will not be affected by a new fire tax until next year due
to the timing of registration renewal notices already mailed. Mr. Jones noted Person County could
be one fire district with one tax rate (3.519 cents) due to fire districts not following parcel lines.
The fire tax is not distributed based on value, but by the authority of the commissioners.
January 20, 2015
55
Mr. Jones clarified that with Option 2, a Fire Commission cannot be established; by statute
the authority is with the Board of Commissioners.
Mr. Jones noted 9/12 months billed for first year, or 26,250 vehicles as July-September
bills already mailed before July 1; another option for first year could be $35.15 to require no general
fund.
January 20, 2015
56
Mr. Jones stated Option 4 allows a Fire Commission to be established or the fire tax can
be governed by the Board of Commissioners or jointly by two neighboring county governing
bodies. A resulting vote could include up to a $.15 cent maximum fire tax.
January 20, 2015
57
Mr. Jones noted 35% of freeholders (real properly owner that lives on the property) is
difficult to establish and any such petition would be verified by tax office which may involve heir
property with unknown heirs. Mr. Jones further noted that even if only one fire district is interested
in a petition and the fire protection district, up to 4 districts may see lines affected (and maybe
surrounding counties). House Bill 589 may prevent a special election. Mr. Jones stated the Election
department does not have a database that matches fire districts. Fire district lines do not follow
parcel lines or roads but are calculated on a 6-mile driving radius of the fire station.
Commissioner Jeffers stated the need to hold community meetings to educate the public
related to the fire tax or continue the same method of funding of increasing funding by 2% every
other year. Commissioner Jeffers noted funding for fire services is a public safety issue to which
the Board should hear from the public before making a decision. Commissioner Jeffers advocated
for dedicated funding so the volunteer fire departments can make larger equipment purchases
without the worry if funding will be appropriated.
Chairman Puryear stated his opposition to a fire tax noting he would consider a funding
formula, establishing a fire fund or changing the revolving loan to be interest free.
Vice Chairman Newell noted it made more sense to continue funding as is to receive more
money for the penny as well as advocated for pursuing state matching grants (up to $30,000 per
year per station) for local funding of fire services thereby setting up a fire fund.
County Manager, Heidi York told the group that following the joint meeting with the
volunteer fire departments, she sent the Board a memo explaining the County does not have a
purchasing agent and should the Board desire to fund the purchase of equipment and fire trucks, it
would have to be incorporated in the Capital Improvement Plan. Ms. York stated the County’s
revolving loan fund guidelines could be amended to include the volunteer fire departments noting
currently there is an interest assessed to the loans which is why staff advised the volunteer fire
departments to take advantage of the interest free loans through the USDA electric coops.
Ms. York explained when the City of Roxboro’s Fire Services agreement was put into place
two years ago, a 2% CPI adjustment was included for every other year. Ms. York noted on the
alternate two year period, a 2% CPI was recommended for the volunteer fire departments to adjust
funding in the same manner as for the City’s fire services yet to be distributed based on actual call
volume noting each volunteer district’s demands are different. Ms. York stated the County only
followed the outlined formula for the volunteer fire departments once. Ms. York’s recommendation
was to implement the formula to address and meet the same goals to adjust similarly as done for
the City of Roxboro.
Commissioner Jeffers noted if the majority of the Board is not in favor of a fire tax, he
would be in favor of establishing a fire fund and reviewing policy changes for the County’s
revolving loan. Chairman Puryear stated support for the revolving loan to be redefined for use by
the volunteer fire departments in a fair distribution to each station. Commissioner Jeffers stated
support to start the conversation between staff and the designees of the Fire Chief’s for each station.
Ms. York stated the non-recurring amount in the County’s Revolving Loan Fund is
currently $181,000.
January 20, 2015
58
Chairman Puryear offered for staff to start dialogue with the Fire Chiefs as the County’s
Revolving Loan process would be faster than the USDA process. Ms. York disagreed noting the
Electric Coop staff are awaiting applications with money to loan immediately noting the County’s
process will take time to set-up the program.
A motion was made by Commissioner Jeffers and carried 5-0 to direct staff to begin
dialogue on establishing a fire fund or redefining the policy of the County’s Revolving Loan as a
line of credit for the volunteer fire departments to apply.
Board members reiterated the Revolving Loan should remain a source for small businesses.
Commissioner Jeffers suggested staff to contact the Fire Chief’s Association President, Wayne
Wrenn to create a committee of designees to dialogue with County staff.
Chairman Puryear requested Board members to complete the second straw poll relating to
Revenue:
January 20, 2015
59
COUNTY TRENDS FOR DECISION-MAKING:
Assistant County, Manager. Sybil Tate gave the Board the following presentation
related to trends in Person County across the state:
January 20, 2015
60
The mean household income for Person County is $52,000.
January 20, 2015
61
January 20, 2015
62
Ms. Tate noted Person County’s population has decreased by 184 people or .5%.
January 20, 2015
63
January 20, 2015
64
Ms. Tate stated Person County Schools’ enrollment has decreased by 939 students since
FY08.
January 20, 2015
65
Ms. Tate stated Person County School’s teacher supplement is ranked in the state’s top 12.
Ms. Tate stated PCC’s enrollment has decreased by 2,260 since FY08 (chart does not
include data for FY15.)
January 20, 2015
66
The FY15 Tax Rate Comparison chart illustrates tax rate only.
January 20, 2015
67
Chairman Puryear announced a brief break at 2:49 pm. The meeting was reconvened at
3:02 pm.
FUND PROJECTIONS & CAPITAL PROJECTS:
Finance Director, Amy Wehrenberg provided the Board with the following Fiscal Review
and Projections:
January 20, 2015
68
January 20, 2015
69
January 20, 2015
70
Ms. Wehrenberg stated the extension request to issue/sell bonds at a 20 year term would
begin in August 2015 and would require a public hearing, if desired by the Board.
January 20, 2015
71
Commissioner Kendrick commented a need to consider amending the County’s Wireless
Communication Ordinance to change the fall zones.
January 20, 2015
72
January 20, 2015
73
Ms. York requested the Board to complete the third straw poll related to fiscal and capital
funding:
January 20, 2015
74
WORKFORCE IMPACTS:
Human Resources and Risk Management Director, Angie Warren provided the Board with
the following presentation relating to Workforce Impacts:
January 20, 2015
75
Ms. Warren stated Option 3 on the Springsted Study slide above would have the greatest
impact to address compression.
January 20, 2015
76
Ms. Warren noted the Coventry options for the next fiscal year include no plan design
changes.
January 20, 2015
77
Ms. Warren noted the Coventry CareLink Plans are through Duke providers for in-network
services.
The Coventry Self-Funded plan is a traditional PPO requiring more administration by
county staff to educate employees and manage costs. Ms. Warren stated no additional staff would
be needed to take on the Self-Funded plan. County Manager, Heidi York stated the projected 8%
savings is a very conservative number.
January 20, 2015
78
Commissioner Newell asked about the start-up fund. Ms. Warren noted the insurance
broker did not answer their questions however staff anticipated between $200,000-$250,000.
January 20, 2015
79
Ms. York asked the Board members to complete the straw poll related to Workforce
Impacts:
Chairman Puryear requested the Board to consider hearing the Sheriff’s request to allow
staff time to compile the survey results. It was the consensus of the Board for Sheriff Dewey Jones
to present his request:
GOVERNOR CRIME COMMISSION GRANT FOR 2015-2016:
Sheriff Dewey Jones requested Board approval for the Sheriff’s Office to pursue a grant in
the amount of $15,000 with a 25% match that would be funded with asset forfeiture funds. The
grant funding will be used for body cameras and other equipment. Sheriff Jones noted the deadline
to submit the grant is January 31, 2015 which necessitated Board action at the retreat.
A motion was made by Vice Chairman Newell and carried 5-0 to approve the Sheriff’s
Office to proceed to write a $15,000 Governor Crime Commission Grant in the amount of $15,000
with a 25% match that would be funded with asset forfeiture funds.
January 20, 2015
80
BUDGET PRIORITIES:
County Manager, Heidi York asked the Board to complete a non-binding ranking survey
based on the aggregate results of the earlier straw polls. Assistant County Manager, Sybil Tate
stated the items in the ranking survey were items that received at least three straw poll votes.
January 20, 2015
81
An illustrated example using the calculator tool with the noted priorities showed the
following:
Debt
Senior Center $47,143
Rec Center $282,857
Communication System $235,000
Roofing $90,000
Self-Funded Insurance $218,921
Total Debt $873,921
Ms. York stated the take-away from the calculator tool is that the upcoming budget process,
based on the priorities outlined, is almost $1M over from a balanced budget. Ms. York thanked the
Board for participating in the straw poll and ranking survey noting the benefits of the Board setting
priorities that provides staff direction in working on the recommended budget.
As a follow-up to the local and state trends presentation, Commissioner Jeffers commented
on the need for Person County to update its Strategic Plan. Chairman Puryear suggested staff
reviewing the last two Strategic Plans, incorporating the Future’s Plan into the concept and
prioritizing by cost. Chairman Puryear asked for an organizational plan with potential committee
members. Assistant County Manager, Sybil Tate asked the Board if the focus should be economic
development or community development or as broad as the Future’s Plan. It was the consensus of
the Board to have a more traditional plan focusing on economic development.
Commissioner Kendrick stated his desire to discuss the Senior Center noting he and other
commissioners have visited the group home space located at 202 S. Main Street. After speaking
with the group home director, David Forsythe, Commissioner Kendrick stated there was an option
for the Senior Center to be temporarily housed at no cost. Commissioner Kendrick asked the Board
for approval to proceed with conversations with Mr. Forsythe related to terms and conditions using
the Person County Group Homes space.
Commissioner Jeffers and Ms. York stated the decision for the location of the senior center
ultimately is the decision of the Kerr Tar non-profit noting the Board could make suggestions as
was done in the past. Commissioner Clayton stated he has requested Diane Cox, Executive Director
of Kerr Tar to visit the group home site.
A motion was made by Commissioner Kendrick and carried 5-0 to recommend to the
Kerr Tar Council of Government to temporarily locate the Senior Center, with David Forsythe’s
approval, in the group home space until a full-time location is worked out.
January 20, 2015
82
CLOSING REMARKS & EVALUATION:
Chairman Puryear and County Manager, Heidi York announced the Board would be
meeting jointly with Roxboro City Council on February 5, 2015. It was the consensus of the Board
to offer the City Council the meeting time at 5:30 pm. Chairman Puryear asked the Board to be
thinking of any ideas for a permanent solution for the Senior Center working in partnership with
City Council. Chairman Puryear thanked the Board members for their initiation to go out and visit
sites for this purpose.
Chairman Puryear asked Board members to complete the retreat evaluation and return to
the County Manager.
ADJOURNMENT:
A motion was made by Commissioner Kendrick and carried 5-0 to adjourn the meeting
at 4:38 pm.
_____________________________ ______________________________
Brenda B. Reaves Kyle W. Puryear
Clerk to the Board Chairman