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BOC Minutes January 21 2014 January 21, 2014 1 PERSON COUNTY BOARD OF COMMISSIONERS JANUARY 21, 2014 MEMBERS PRESENT OTHERS PRESENT Jimmy B. Clayton Heidi York, County Manager Kyle W. Puryear B. Ray Jeffers Brenda B. Reaves, Clerk to the Board Frances P. Blalock David Newell, Sr. The Board of Commissioners for the County of Person, North Carolina, met in regular session on Tuesday, January 21, 2014 at 9:00 am at the Mayo Park Environmental Education Community Center located at 1013 Neal’s Store Road, Roxboro for the annual Board Retreat. The purpose of the Board Retreat is to provide an opportunity for the Board to discuss the Fiscal Year 2014-2015 budget and any other topics as deemed appropriate. Chairman Clayton called the meeting to order. County Manager, Heidi York welcomed the group to the annual budget retreat. Ms. York told the group the retreat is an opportunity for the Board to set goals for the upcoming budget. Ms. York stated there would be no public comments and she would facilitate the group discussions to keep on track with the agenda. Ms. York outlined the retreat agenda and the rules of engagement to share all relevant information, participate and be willing to ask questions. STATE REVENUE AND ECONOMIC OUTLOOK: Dr. Barry Boardman, Chief Economist, Fiscal Research Division of the North Carolina General Assembly stated his objective is to provide revenue and economic trends. Dr. Boardman gave the Board of Commissioners the following presentation: January 21, 2014 2 January 21, 2014 3 January 21, 2014 4 January 21, 2014 5 January 21, 2014 6 January 21, 2014 7 January 21, 2014 8 January 21, 2014 9 January 21, 2014 10 January 21, 2014 11 Dr. Boardman informed the Board that NC will be the 20th state of the union for Amazon to voluntarily start to collect sales tax. January 21, 2014 12 Dr. Boardman emphasized the forecasted 2% growth would mean 60,000-100,000 new jobs in North Carolina over the current 30,000-40,000. January 21, 2014 13 January 21, 2014 14 Dr. Boardman explained the drop-off in the per capita income appears to be a function of demographics, not economics, i.e., a shrinking labor force noting job growth within growing population that is non-labor. Ms. York noted the retiree population growth impacts the demand of services locally. January 21, 2014 15 January 21, 2014 16 January 21, 2014 17 Commissioner Newell requested the County Manager to give the Board the last five years of per capita income data. Finance Director, Amy Wehrenberg noted this information can be found in the Financial Report. Dr. Boardman stated not much change is anticipated within health economics. Dr. Boardman noted he did not expect any new tariff laws noting a trend referred to as re-shoring is taking place noting the costs of shipping goods manufactured overseas is more currently than manufacturing the product stateside. January 21, 2014 18 Dr. Boardman concluded his presentation speaking to the Board about corporate tax rates noting if fiscal goals are met, the plan is for the rate to drop as follows: 2012 6.9% 2013 6.9% 2014 6% 2015 5% 2016 4% 2017 3% 2018 2% Dr. Boardman stated South Carolina currently has the lowest corporate tax rate at 5%. Chairman Clayton thanked Dr. Boardman for his information and announced a brief break at 9:59 am. STATE LEGISLATIVE UPDATE: Mr. Kevin Leonard, Deputy Director with the NC Association of County Commissioners (NCACC) introduced Matt Gunnett as the new legislative Grassroots Coordinator. Mr. Leonard gave the Board the following presentation titled NCACC Update: January 21, 2014 19 January 21, 2014 20 The legislative short session is slated to begin May 14, 2014 and estimated to end mid-July. January 21, 2014 21 Mr. Leonard estimates a short session without many controversial issues. January 21, 2014 22 Mr. Leonard noted Amazon is volunteering to charge sales tax and is doing so under the Marketplace Fairness Act that has passed in the Senate and is currently in the House. January 21, 2014 23 January 21, 2014 24 January 21, 2014 25 January 21, 2014 26 January 21, 2014 27 Commissioner Newell asked that percent of state employee’s retirement is paid. Mr. Leonard stated he would find out and send along to the Board. Commissioner Puryear asked the County Manager to report the last five years trend of Person County lottery funds. January 21, 2014 28 Vice Chairman Jeffers asked about the new law related to volunteer fire and EMS workers’ comp costs. Mr. Leonard stated the Department clarified that the law did not apply to volunteer fire and EMS workers. January 21, 2014 29 January 21, 2014 30 January 21, 2014 31 January 21, 2014 32 January 21, 2014 33 January 21, 2014 34 January 21, 2014 35 January 21, 2014 36 January 21, 2014 37 January 21, 2014 38 Vice Chairman Jeffers stated County Assembly Day registration is free this year. January 21, 2014 39 January 21, 2014 40 County Manager, Heidi York noted one unfunded mandate coming to counties is related to the Voter Registration Act that is effective in 2018 with the paper ballot. Chairman Clayton stated data from the NC Lottery Commission website indiates Person County has received $10,753,996 since its inception in March 2006 and in fiscal year 2013 Person County received $1,635,667. Finance Director, Amy Wehrenberg asked Mr. Leonard about the sales tax impact on electricity. Mr. Leonard stated he was unsure and he would check with Dr. Boardman and others to research. Chairman Clayton announced a brief break at 11:12 am. The meeting reconvened at 11:21 am. AD VALOREM AND VEHICLE TAX REVENUES: County Manager, Heidi York stated revenue projections are estimated noting the real numbers come later in some cases, i.e., state appraised properties from May – September. Tax Administrator, Russell Jones outlined the following presentation to provide information to the Board related to Ad Valorem and vehicle tax revenues. January 21, 2014 41 January 21, 2014 42 January 21, 2014 43 January 21, 2014 44 January 21, 2014 45 January 21, 2014 46 Mr. Jones stated motor vehicles can be tax as an un-tagged vehicle is not renewed or charged retroactively if a skip-tag renewal. January 21, 2014 47 Based on 88% vehicle taxes paid in a calendar year and budgeted 97% of real taxes paid (last year actual 97.71%), one penny equates to $409,065 in the upcoming budget. Current year one penny equals $387,000 without one-time bonus DMV months or $417,000 with one-time bonus months. January 21, 2014 48 FISCAL REVIEW AND PROJECTIONS: Finance Director, Amy Wehrenberg outlined the following presentation for Person County’s Fiscal Review and Projections outlining Person County’s mid-year comparison for revenues and expenditures, sales and use tax distribution, recent unemployment trends, fund balance available and unassigned amounts, fund balance policy, and the next six months forecast. Commissioner Blalock asked Ms. Wehrenberg about tax on services. Ms. Wehrenberg stated more information will come on this issue as she is not sure the debate is settled. January 21, 2014 49 January 21, 2014 50 January 21, 2014 51 Ms. Wehrenberg confirmed unemployment is based on residency. January 21, 2014 52 Ms. Wehrenberg requested Board consieration of the Fund Balance policy with directions/actions to be taken should the balance fall beneath the recommended minimum. January 21, 2014 53 Ms. Wehreberg stated the General Fund FBA 25.9% represented $9.9 million. Prior fiscal year, according to the Financial Report, the General Fund FBA was at 36.2% which represented $12.6 million. Ms.Wehrenberg stated the unassigned Fund Balance went from 26% prior fiscal year to 18% at end of fiscal year 2013. January 21, 2014 54 Chairman Clayton asked Ms. Wehrenberg about debt coming off the books. Ms. Wehrenberg stated in fiscal year 2016, $2 million in debt will be relieved. Ms. Wehrenberg suggested the Board could delay large capital projects until fiscal year 2016 or borrow/finance projects in the upcoming years instead of paying for such from Fund Balance. Vice Chairman Jeffers asked what the County’s biggest debt payment is currently. Ms. Wehrenberg stated the 1999-2000 school debt payment is over $1 million. Ms. Wehrenberg confirmed any new project(s) could absorb that debt or the County could borrow for any large project(s). Commissioner Newell asked Ms. Wehrenberg what were the interest rates for the County’s debt. Ms. Wehrenberg stated the County’s debt is based on fixed rates, below 3% along with one re-financed debt just over 3%. Ms. Wehrenberg noted today’s interest rates range from 3% to 3.5%. Chairman Clayton announced a break for lunch at 12:26 pm. The meeting reconvened at 1:17 pm. STRATEGIC PLAN GROUP PRESENTATIONS: Assistant County Manager, Sybil Tate announced each of the Person County Strategic Plan’s focus groups have met and completed action plans as well as priorities for fiscal year 2015 for Board consideration to fund in the upcoming budget. Ms. Tate stated each focus group will have a short presentation by a representative(s) of the group. January 21, 2014 55 Re-Imagine Our Future Ms. Beth Townsend of Piedmont Community College Foundation, Ms. Abby Gentry of Roxboro Development Group, Ms. Erin Hill of the Kirby and Ms. Margaret McMann of Tourism Development Authority appeared before the Board for funding consideration for the Re-Imagine Our Future Strategic Plan goal noting branding creates a vision for the future, partnerships promote growth and economic development. The group discussed community events, calendaring those events, and the opportunities for festivals. Ms. Townsend presented the priorities as follows: Re-Imagine Our Future Fiscal Year 2015 Priorities Project Cost Branding and marketing campaign $20,000-$50,000 Provide performing and visual art field trip opportunities for Person County students $2,000-$5,000 TOTAL $22,000-$55,000 January 21, 2014 56 Protect Our Land Ms. Kim Woods, Interim County Extension Director stated she along with Wanda Rogers, Person Industries Director, Becky Clayton, Person Industries Assistant Director and Dr. Claudia Berryhill, citizen and advocate for the County, developed a plan for the Protect Our Land Strategic Plan goal. Ms. Woods presented the funding request for the priorities as follows: Protect Our Land Fiscal Year 2015 Priorities Project Cost Host an agri-tourism producer-consumer listening session $1,000 Small business /industry waste audits $2,400 Beautification program $16,137 TOTAL $19,537 January 21, 2014 57 Foster a Sense of Community Ms. Jayne Bremer of United Way and Mr. John Hill, Arts, Parks & Recreation (P&R) Director presented to the group the Foster a Sense of Community Strategic Plan goals for funding consideration noting each of the priority projects are connected. Ms. Bremer presented as follows: Foster a Sense of Community Fiscal Year 2015 Priorities Project Cost Afterschool program, administered through JCPC $12,000 P&R scholarships $10,000 Adding promotion of volunteer opportunities and other community events to the P&R seasonal brochure $1,500 TOTAL $23,500 January 21, 2014 58 Lifelong Learning Dr. Walter Bartlett, Piedmont Community College President presented the Lifelong Learning Strategic Plan goal priorities to the Board for funding consideration noting the recommendations were formed by community education leaders, i.e. Gordon Powell, Tara Holmes, Ronnie Dunevant, Margaret Bradsher and John Betterton with the objectives targeting three age groups plus a community initiative. Dr. Bartlett presented the following: Lifelong Learning Fiscal Year 2015 Priorities (Goal.Objective.Strategy) - Project Description Cost 1.1.1 – Administer subsidy enhancement funds. (Pre-School Focus) $18,000 1.3.1 – Implement a public safety/broadband project. (Community-wide Focus) $3-4 Million 1.4.2 - Collaborative feasibility study for an Enhanced Early College. (travel) (School Age Focus) $8,000 2.2.2 – Contract with EMSI to conduct a local program/job analysis study. (Adult & Economic Development Focus) $12,000 TOTAL $38,000+$4M The group discussed difference in an Early College (located on a college campus) and an Enhanced Early College (located off-campus, proposed to be located in the main building at the former Helena School site). Dr. Bartlett stated the innovative school concept will target middle schools student that are average performers to obtain a high school diploma plus an associate’s degree upon high school graduation. Vice Chairman Jeffers referred to stats from a profile on Person County that depicted 81.1% of Person County residents age 25 and up have a high school diploma and 14% that have obtained a bachelor’s degree. Commissioner Puryear stated his support and his desire for the full Board to seize the opportunity and not let it slide through as done in the past. January 21, 2014 59 Economic Development Person County Economic Development Director, Stuart Gilbert stated the mission of Economic Development is to recruit industry, expand existing industry and promote small business growth. Mr. Gilbert presented the Economic Development Strategic Plan priorities to the Board for funding consideration as follows: Economic Development Fiscal Year 2015 Priorities Project Cost Uptown Development Projects (In form of Grant to RDG) $20,000-$30,000 Long Term Fiber Optic Plan for Person County $3-4M Website Upgrade and Marketing Material ON WEB $10,000 TOTAL $30,000 & $3-4M Mr. Gilbert stated the Uptown Development projects would include public restrooms, new development, improvement, restaurants and retail shops which would mean new jobs working in partnership with the City of Roxboro through a grant to RDG. Mr. Gilbert explained the difference in wireless and broadband options noting the broadband strategy has been a long term goal for Person County. Mr. Gilbert passed out information related to broadband strategies. The long term fiber optic plan noted as an Economic Development priority offers a network for public facilities. Mr. Gilbert told the group that PCBIC funded a broadband study with the report due within sixty days. Assistant County Manager, Sybil Tate added the $3-$4 million estimate cost for the public safety/broadband project included the majority of the costs for the construction of the towers with only $100,000 tabbed for broadband services. Mr. Gilbert said the website upgrade will enhance the current information and allow for more data to be marketed about Person County. Vice Chairman Jeffers referred to a County Profile for Person County by the Commerce Economic Development noting his preference to improve the weaknesses as listed on the profile. Mr. Gilbert stated data and site analysis ranked higher than local incentives when industry considers a location. January 21, 2014 60 Ms. Tate followed up with the total costs to implement the Strategic Plan Priorities for Fiscal Year 2015 excluding the multi-million dollar projects: Strategic Plan Priorities FY15 Protect Our Land Project Cost Host a producer-consumer listening session $1,000 Small business /industry waste audits $2,400 Beautification program $16,137 TOTAL $19,537 Foster a Sense of Community Project Cost Afterschool program, administered through JCPC $12,000 P&R scholarships $10,000 Adding promotion of volunteer opportunities and other community events to the P&R seasonal brochure $1,500 TOTAL $23,500 Re-Imagine Our County Project Cost Branding and marketing campaign $20,000-$50,000 Provide performing and visual art field trip opportunities for Person County students $2,000-$5,000 TOTAL $22,000-$55,000 Lifelong Learning Project Cost Administer subsidy enhancement funds $18,000 Implement a public safety/broadband project $3-4 Million Collaborative feasibility study for an Enhanced Early College $8,000 Contract with EMSI to conduct a local program/job analysis study $12,000 TOTAL $38,000+$4M Economic Development Project Cost Uptown Development Projects (In form of Grant to RDG) $20,000-$30,000 Long Term Fiber Optic Plan for Person County $3-4M Website Upgrade and Marketing Material ON WEB $10,000 TOTAL $30,000 + $3-4M January 21, 2014 61 Grand Total Project Cost Protect Our Land $19,537 Foster a Sense of Community $23,500 Re-Imagine $55,000 Lifelong Learning $38,000 Economic Development $30,000-$40,000 Grand TOTAL $176,037 Ms. Tate recognized the hard work and dedication of the many Strategic Plan committee members. Chairman Clayton announced a brief break at 2:36 pm. The meeting was reconvened at 2:48 pm. January 21, 2014 62 INPUT ON THE FY15 BUDGET: County Manager, Heidi York presented the Board the following slides to provide some input on considerations related to the Fiscal Year 2015 budget: January 21, 2014 63 Ms. York stated she would provide the Board follow-up information related to turnover. Vice Chairman Jeffers suggested the Sheriff to review the possibility of the local hospital providing meals for the Jail. January 21, 2014 64 BUDGET DOCUMENT OPTIONS: Assistant Finance Director and Budget Manager, Laura Jensen presented to the Board for consideration best practice budget document options: January 21, 2014 65 January 21, 2014 66 January 21, 2014 67 January 21, 2014 68 January 21, 2014 69 January 21, 2014 70 January 21, 2014 71 Ms. Jensen noted the collapsed version of expenditures would include personnel, operating and capital while revenues would report intergovernmental such as state funds, federal funds, Medicaid, Medicare and grants as well as any other revenues. Vice Chairman Jeffers stated his preference to have the proposed budget documents in addition to the current budget line detail but not in place of such. Vice Chairman Jeffers stated the collapsed version is not as transparent which is why he would prefer both formats. BUDGET WRAP-UP/STRAW POLL: County Manager, Heidi York wrapped up the Board Retreat by reiterating the following: Many operating cost constraints in departments; property & sales tax revenues may help offset these if tax rate remains Revenue delays in EMS & Health Dept due to the State’s NC Tracks System All departments will have increases in salary lines due to performance pay implementation (& possible classification/compensation study adjustments); also changes in E911 pay structure Increase in inmate population has again strained public safety budget May need to consider delays to capital projects Drop in Fund Balances (Gen Fund); Need strategies to address for next year. January 21, 2014 72 Assistant County Manager, Sybil Tate asked the Board members to participate in a brief, anonymous, non-binding survey through use of their iPad. The survey asked each participant to rank the importance of the budget items listed in the survey for inclusion in the Fiscal Year 2014-2015 budget. The survey results are as follows: January 21, 2014 73 January 21, 2014 74 January 21, 2014 75 January 21, 2014 76 CLOSING REMARKS & EVALUATION: County Manager, Heidi York requested the Assistant County Manager, Sybil Tate to email the Board members a retreat evaluation survey to include any feedback from the day long retreat process. Chairman Clayton and Ms. York thanked everyone for this participation during the budget retreat. RECESS: A motion was made by Vice Chairman Jeffers, and carried 5-0 to recess the meeting at 4:19 pm until February 3, 2014 at 6:00 pm at the Person County Recycling Center located on 741 Martin Street, Roxboro for the purpose of a tour. _____________________________ ______________________________ Brenda B. Reaves Jimmy B. Clayton Clerk to the Board Chairman