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PERSON COUNTY BOARD OF COMMISSIONERS FEBRUARY 18, 2013
MEMBERS PRESENT OTHERS PRESENT
Jimmy B. Clayton Heidi York, County Manager
Kyle W. Puryear C. Ronald Aycock, County Attorney
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 Monday, February 18, 2013 at 8:30 am in the S-100 meeting room at
Piedmont Community College located at 1715 College Drive, 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 2013-2014 budget and any other topics as deemed
appropriate.
Chairman Clayton called the meeting to order and led invocation. Vice Chairman
Jeffers was absent until 9:22 am.
Chairman Clayton and 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.
Ms. York provided the group with the following biographies of the guest
speakers:
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ECONOMIC OUTLOOK:
Dr. Mike Walden, Reynolds Distinguished Professor at NC State University gave
the Board the following presentation titled Economic Outlook:
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Dr. Walden noted a correction on slide #7 above: 2020 should read 2010.
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Slide #14 total inflation rate for 2012 equaled 1.8%.
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In Slide #30, Dr. Walden stated there have been two recessions in the last ten years with
NC suffering more due to the manufacturing base.
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Dr. Walden spoke to potential dramatic changes to the tax system: getting rid of
corporate and individual income taxes and replacing those with expanded sales tax that
would tax all goods and services at a higher rate.
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Dr. Walden concluded that he is cautiously optimistic as NC is in an economic
recovery that will accelerate with better growth in 2013. Dr. Walden noted the current
savings rate is at 3.2%. The forecast that the US would be energy efficient by 2020
assumes the required infrastructure (pipelines and processing plants) will be constructed
to handle the production of energy according to Dr. Walden. Dr. Walden predicts the
national deficit will ultimately be deferred again. Dr. Walden stated national programs
associated with aging, i.e. Medicare, social security, Medicaid will require changes to
help drive down expenditures. Dr. Walden addressed workforce aging noting the US is at
a replacement level with immigration and suggested the following book as a resource
reading on demographics, What to expect when you’re not expecting. Dr. Walden stated
trends in manufacturing in the US and worldwide is more technology and machinery
oriented and less people.
Ms. York announced a brief break at 10:02 am to transition speakers. The
meeting was reconvened at 10:08 am.
STATE LEGISLATIVE UPDATE:
Mr. Kevin Leonard, Deputy Director with the NC Association of County
Commissioners along with Johanna Reese, Director of Government Relations and
Casandra Skinner, Legislative Counsel gave the Board the following presentation titled
NCACC Legislative Update:
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Ms. Reese noted a correction that there are currently 26 former commissioners in
GA.
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Mr. Leonard stated he, Ms. Reese and Rebecca Troutman met with Art Pope, state
Budget Director to further discuss the pledge of Speaker Tillis and President Pro-Tem
Berger made last session in opposition to passing unfunded mandates to the counties.
Ms. Reese updated the group on one of the legislative goals: to restore state
funding and function for monitoring river basins across the state. Ms. Reese stated
DENR has addressed some the budget cuts by cutting monitoring to river basins noting
Assistant Secretary Gillespie spoke to the Environment Committee pledging his review
of the impervious area requirement. Chairman Clayton added that if the impervious area
requirement was changed from one-half acre to one acre, Person County would benefit.
Mr. Leonard noted his experience watching the property tax issues at the state
level having valuation issues given the economy. Mr. Leonard noted state level changes
related to property revaluation are not in the direction of increasing the years, but
decreasing to a mandatory four years versus the current eight years.
Commissioner Newell inquired about possible legislation to allow counties to
draw interest on cash balance. Mr. Leonard was not aware of such request.
Ms. Skinner spoke to the group regarding proposed legislation related to the
Wake County Bill, Senate Bill 27 and Senate Bill 59. Ms. Skinner noted the Wake
County Bill was a goal presented late in the process to allow for the option for counties to
own, acquire and construct traditional public school facilities. Ms. Skinner noted policy
has been adopted not favoring of any legislation that would require public funding for
charter schools. Senate Bill 27 would authorize a school board to having a school
marshal with Senate Bill 59 noting a school resource officer and/or volunteer. Ms.
Skinner noted that discussion at a recent Public Education Steering Committee included
another proposal involving the school resource officers which may require further study.
Mr. Leonard stated the bill in sitting in rules noting this item would be discussed at the
upcoming NACo legislative conference in March at the federal level.
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Mr. Leonard asked the Board if Person County is interested in being included on
the electronic public notice bill to offer an option to post public and legal notices on the
website and send out electronically versus the mandate to print and if so, to let the
NCACC staff know. There are currently nine or ten local governments interested and
once the interest caps at fifteen, the bill could be considered statewide.
Chairman Clayton thanked NCACC staff for their presentation and reminded the
Board the Association staffs are available to help counties noting the NCACC website is
a helpful resource.
Upcoming dates for the calendar are:
• Opportunity on Wednesdays to walk the halls of the legislature
• District meetings in April
• County Assembly Day on May 22, 2013
A brief break was taken at 11:04 am. The meeting was reconvened at 11:07 am.
PROPERTY REVALUATION:
County Manager, Heidi York introduced Mr. Michael Brown with the NC
Department of Revenue.
Mr. Brown told the group that North Carolina mandates reappraisals every eight
years with an option annually if desired. Mr. Brown there are three approaches that
counties use to value property: 1) sales approach, 2) cost approach and 3) income
approach.
Mr. Brown defined market value in the state of North Carolina according to the
Machinery Act (laws that govern property taxation) as true value which involves a
willing buyer, willing seller with no duress with both have reasonable knowledge of the
uses to which the property could be put to. Mr. Brown stated foreclosures should not be
used as they do not fit the criteria and good sales would trump with greater weight.
Mr. Brown outlined the property revaluation process with notices being mailed to
tax payers at or around January 1st with the first step of appeals being with the Tax
Assessor, who has the authority to adjust values until the Board of Equalization and
Review convenes at which time the authority to adjust values transfers from the Tax
Assessor to the Board of Equalization and Review. Mr. Brown stated each taxpayer
appearing before the Board of Equalization and Review will receive a dated decision
letter to which the taxpayer has thirty days from the date on the letter to appeal to the next
level of appeal before the Property Tax Commission. Following the state level appeal
would be to the NC Court of Appeals and the NC Supreme Court. Mr. Brown told the
group that great weight of the evidence should rule the case when making determinations
to adjust values based on taxpayers’ factual information, documentation, appraisal report
and/or specific issues pertaining to the property. Mr. Brown noted the county must
uniformly assess property at fair market value.
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County Attorney, Ron Aycock addressed the question related to liability for the
members of the special Board of Equalization and Review noting there is no liability
individually or collectively.
Mr. Brown stated the Dept. of Revenue implements a statistical measure of the
level of assessment for each county (sales ratio study). Mr. Brown confirmed that the
appraisal contract is not subject to the formal bid requirements and noted the eight
percent of the 27,000 parcels filing appeals was normal.
Mr. Brown confirmed that the Board adopts a Schedule of Values in the year
preceding the effective revaluation year to be valid until the next general reappraisal. Mr.
Brown stated tax payers with an issue related to the value are recommended to bring
documentation to the Assessor’s office for further review, i.e., an appraisal report which
is an opinion of value. Mr. Brown stated confidence in the Tax Assessor and the Board
of Equalization and Review to carry out its duties.
Commissioner Puryear asked Mr. Brown about the possibility of Person County
asking NC General Assembly to grant Person County permission to re-do property
revaluation. Mr. Brown stated a re-do is not part of the mechanism and that in all his
twenty-six years, he has not heard of a county requesting a revaluation re-do noting
although he felt it was unlikely, General Assembly has the authority to pass legislation
for such.
Commissioner Puryear asked Mr. Brown if he knew of committees created for
input related to the Schedule of Values. Mr. Brown stated he has known where former
commissioners have participated on an established workgroup committee(s) giving input
prior to the Assessor presenting the Schedule of Values to the Board, but not including
general public.
Mr. Brown offered his office (Local Government Division, Property Tax Division
at the NC Dept of Revenue) phone number 919-733-7711 for any further questions.
Ms. York stated an informal sampling of the values had been requested to be
reviewed by the Dept of Revenue. Mr. Brown stated his office would be happy to do
such noting their office is currently working on getting the sales ratio study (statistical
measure of the reappraisal) completed. Mr. Brown stated a sales ratio study is conducted
in all 100 counties annually noting NC is a true value state. Mr. Brown noted the
statistical measure is used for public service company valuation for the first year, fifth
year and eighth year of the reappraisal cycle. Mr. Brown confirmed the public utility
companies are valued by the Dept of Revenue and certifies the values to the counties and
cities, at which time, the counties and cities bill that certification of value of public
service companies to the individual companies.
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Commissioner Puryear requested the Board to approve a Resolution requesting
the General Assembly to grant Person County permission to re-do property revaluation
for 2013. Vice Chairman Jeffers suggested prior to consideration of a resolution that the
Board should talk with Person County’s legislators, Representative Wilkins and Senator
Woodard.
Commissioner Puryear requested to have a resolution on the Board’s next agenda
and invite both Representative Wilkins and Senator Woodard to be present.
Commissioner Puryear further requested consideration for the Board to form a committee
of members representing Person County Tax Office staff as well as private individuals in
the real estate sector to provide insight to create a real property appraisal policy to review
the Schedule of Values for real property.
Ms. York asked the Tax Assessor, Russell Jones to comment on what the effects
of the proposed re-do of revaluation would mean to Person County. Mr. Jones stated a
revaluation re-do insinuates something is wrong with the current revaluation noting the
level of appeals and the sales ratio of the lake properties are accurate. Mr. Jones ventured
to say future valuations would result in lake values increasing. Mr. Jones summarized
previous four-year cycle valuations results in 17% and 21% increases in overall values
respectively with the current revaluation for an eight-year cycle resulted in less than 5%
increase overall. Mr. Jones stated a revaluation re-do would be a waste of county funds.
Mr. Jones stated the Schedule of Values allows room to lower/raise property values based
on evidence provided to state values are wrong. Commissioner Puryear stated
disagreement that the responsibility should be placed on the taxpayer to prove the values
are incorrect but the county should illustrate how the value was determined as true market
value. Mr. Jones stated the Tax Office did not have comps on each parcel.
Commissioner Puryear questioned how is true market value determined if comps are not
available. Mr. Jones stated the Schedule of Values are developed based on all sales and
then use the sales ratio to compare for accuracy.
Ms. York reminded the Board that Mr. Brown noted if major inconsistencies are
discovered by the Board of Equalization and Review during citizen appeals, a
determination that values are wrong could be made however, basing the value being
wrong by the percentage the value increased is not allowed. Commissioner Puryear
recommended the appeal process to continue as planned reviewing case by case at the
same time, a local bill to be introduced to General Assembly.
Chairman Clayton stated no local bill was introduced on behalf of Mecklenburg
County and the chances of a minority Senator or a minority Representative getting a bill
passed that the majority party for one of the largest counties in the state is slim and none.
Commissioner Puryear disagreed the commissioners did not vote for the local bill to go to
General Assembly. Chairman Clayton asked the County Attorney to address the issue of
timing related to a grace period following the eighth year revaluation cycle. Mr. Aycock
stated his research for case law for an allowance of time beyond the eighth year cycle
resulting in none. Mr. Aycock noted an extension has been granted at the four-year cycle
but not at the eighth-year cycle.
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A motion was made by Commissioner Puryear, and carried 5-0 to place on the
Board’s meeting agenda for March 11, 2013 a draft Resolution requesting the General
Assembly to grant Person County permission to re-do property revaluation for 2013 with
Person County’s legislators, Representative Wilkins and Senator Woodard to be invited
to attend the March 11, 2013 meeting.
Vice Chairman Jeffers recommended the Board to have supporting facts for the
legislators to present to General Assembly.
Commissioner Blalock requested a brief categorized summary of the informal
appeals to use as evidence for consideration for the local bill.
The group recessed for a lunch break at 12:37 pm. The meeting was reconvened
at 1:06 pm.
CREATING A COUNTY VISION:
County Manager, Heidi York told the group that the top five priorities listed by
the Person Future’s Strategic Plan subcommittees were included in the board packets to
use for framework for crafting a county vision statement to guide Person County in
budgeting and implementing projects. Ms. York introduced Mr. Warren Miller of
Fountainworks to lead the Board’s discussion of the vision of the county in ten years, in
particular as to what the Board would like for Person County to be known for at that
interval in the future. Board members included the following ideals:
• A high quality of life with good educational systems, recreational opportunities,
safe and attractive communities for family life, clean water and air, recycling, no
crime with close proximity to urban areas,
• economic development through regional partnerships, industrial parks, improved
roads, rail, airport, water and sewer,
• low unemployment through a diverse job market, new industry with high-paying
jobs with good benefits, and
• self supporting, good tax base, locally grown food.
Mr. Miller helped the group identify the following big steps by Person County
leaders: market, jobs and training, investment, commitment, safe environment and buy-
in from the citizens. Challenges identified are funding, unified vision, competition, and
the right people in place with follow up commitment. County supports include staff,
business friendly, and conservative in spending, community support and a good website.
Vice Chairman Jeffers stated his preference to structure the strategic plan in a
more traditional plan outlining projects with timelines and associated costs as well as
have expertise given to which goals are attainable. Assistant County Manager, Sybil Tate
added that a new plan is due to begin in 2014.
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Commissioner Blalock announced an idea from the subcommittee for Person
County to hold a Tomato Festival that would be unique to Person County.
Commissioner Puryear stated agreement with Vice Chairman Jeffers for a
prioritized list of attainable goals for the strategic planning process suggesting ranking
the top five, ten or twenty projects that are realistic as well as request feedback from the
local community business leaders, stakeholders, etc. for associated costs, a measuring
tool and a timeline for each project.
The Board credited the valuable community input in setting the current goals but
stated the need for more information related to the strengths and weaknesses in
measuring each goal for realistic implementation.
County Manager, Heidi York stated success is determined by the county’s
leader’s vision with community support.
The group took a brief break at 2:21 pm. The meeting was reconvened at 2:28
pm.
REVENUE PROJECTIONS:
Tax Administrator, Russell Jones outlined the following presentation to provide
information to the Board related to county revenues. Mr. Jones stated the 2012 levy
realized $4.07 million in revenues compared to the $3.99 million budgeted.
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Mr. Jones stated as the value of the county increases, the revenue that one penny
generates also increases.
Mr. Jones noted he is optimistic that the new laws governing registered motor
vehicle tax will proceed July 1, 2013. Mr. Jones stated the Division of Motor Vehicles
(DMV) will collect the vehicle taxes earning approximately .54 cents per transaction.
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EXPENDITURE PROJECTIONS:
Finance Director, Amy Wehrenberg outlined the following presentation for
Person County’s Fiscal Review and Projections outlining Person County’s challenges
ahead specifically discussing what an Unassigned Fund Balance is and why this is going
to be a key player in the budget projections. Ms. Wehrenberg shared with the Board
some revenue and expenditure impacts that are anticipated.
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Ms. Wehrenberg stated the only factors that can reverse the anticipated drop in
UFB are to reduce expenditures, delay capital, or recognize additional revenues; however
Ms. Wehrenberg does not anticipate this to happen between now and the current year
end, therefore, a decrease is most certainly expected.
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Assistant County Manager, Sybil Tate added the broadband contract expenditure
is Person County’s 50% match to a provider per RFP grant award to provide access to
broadband in the unserved areas of the county (5%) impacting 700 residents.
County Manager, Heidi York stated the county has used fund balance for
recurring expenses impacting capital expenses.
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Ms. York finished the presentation with a preview of the next several months, the
budget process, and some highlights of budget impacts for next year.
Ms. York noted the property tax collection forecast to come in higher is
contingent upon the current tax rate remaining the same. Ms. York stated she had
delayed direction to department directors for submitting upcoming operating budget
requests so to relay the Board’s priorities.
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Public safety departments and the Department of Social Services are seeing an
increase in the demand of services.
Ms. York asked the Board to consider the following as the county enters its
budgeting process:
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• Is there interest in adopting a policy as a broader guiding principle related
to Fund Balance,
• Is there interest in setting a revenue neutral tax rate or to leave the tax rate
at .70 cents,
• Is there interest in implementing stormwater fees on county citizens
outside city limits, and
• Is there interest in supporting a competitive workforce to retain high
performance employees.
The Board took a brief break at 3:58 pm. The meeting reconvened at 4:04 pm.
BUDGET WRAP-UP:
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 2013-2014 budget. The survey results are as follows:
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Following the survey, Ms. Tate used a calculator to simulate the survey results
into spreadsheet for those items resulting in a 3.0 or above as an example. The survey
results illustrated interest in implementing a stormwater fee on county residents outside
the city limits. The group discussed pros and cons of such implementation during a tax
revaluation year.
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Ms. York commented the survey results showed more interest in a Cost of Living
Adjustment over Merit Pay for employees. Ms. York told the group she would forward
to them information related to the average salary of an employee of Person County as
well as the average household salary in Person County.
Ms. York informed the Board that she had already asked Michael Brown to
perform a sampling of the values and although he did not address in his presentation, he
had shared with her that the lake values were accurate with the possibility of a couple of
areas in the county that was appraised early in the process that may be at one percent
higher. Ms. York stated she would request Mr. Brown to follow-up with an email to
confirm the sampling with the results. Tax Appraiser, Russell Jones noted the results
indicated the lake values at 99% which means the lake properties are actually valued 1%
lower at this time. Mr. Jones noted the areas visited first in the revaluation process
almost two years ago (northern part of Woodsdale and the non-lake areas of Holloway) to
which his office will re-visit. Mr. Jones further noted new information recently received
from the Department of Revenue is instructing counties to appraise at a market value at
97-98% per instruction of the Property Tax Commission to decrease the number of
appeals.
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.
Ms. York stated proposed budget work sessions dates will be included in the
Manager’s Recommended Budget which will be delivered to the Board on May 20, 2013.
The budget public hearing is scheduled for June 3, 2013. Prior to the recommended
budget, a Community Conversations meeting focusing on the budget is scheduled for
April 29, 2013. A list of upcoming calendar dates will be sent to the Board members.
Chairman Clayton thanked everyone for this participation during the budget
retreat.
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RECESS:
A motion was made by Commissioner Blalock, and carried 5-0 to recess the
meeting at 4:31 pm until 4:00 pm on February 26, 2013 in the FEMA room at the Human
Services Building.
_____________________________ ______________________________
Brenda B. Reaves Jimmy B. Clayton
Clerk to the Board Chairman