March 29
March 29, 2011 1
PERSON COUNTY BOARD OF COMMISSIONERS MARCH 29, 2011 MEMBERS PRESENT OTHERS PRESENT
Jimmy B. Clayton Heidi York, County Manager Kyle W. Puryear Gene Hodges, Assistant County Manager
B. Ray Jeffers Brenda B. Reaves, Clerk to the Board
Samuel R. Kennington Ray Foushee, General Services Director Frances P. Blalock Amy Wehrenberg, Finance Director
The Board of Commissioners for the County of Person, North Carolina, met in recessed session on Tuesday, March 29, 2011 at 7:00 p.m. in the Commissioners’ meeting room in the
Person County Office Building for the purpose of discussing the Recommended Capital Improvement Plan (CIP) 2012-2016.
Chairman Clayton called the meeting to order.
RECOMMENDED CAPITAL IMPROVEMEMNT PLAN (CIP) 2012-2016:
County Manager, Heidi York told the Board the meeting was an opportunity to discuss capital priorities for the coming year and provide guidance on the needs for the next five years.
Ms. York answered the following questions from the last CIP discussion on March 21, 2011:
“What is Person County’s exact debt service level?” As of June 30, 2010 Debt Service Expenditures were $3,729,514. The debt service ratio (debt
as a percentage of total expenditures) is 7.5%.
“What is an appropriate amount of debt to carry?” Person County uses the debt service ratio as a measurement, which divides debt service payments (principal and interest) by total expenditures. Ms. York stated there is no recommendation from the Local Government Commission however noting some professional
organizations suggest debt service should not exceed 10% of total expenditures, while bond rating agencies have cited a level not to exceed 20%. Ms. York further noted the Board could adopt a policy specifying a level, if desired.
Ms. York noted it is always appropriate to benchmark against peer counties in the same population group. The State Treasurer’s Website defines Person County’s population group as
“Counties with Populations 25,000–49,999.” Ms. York highlighted the following benchmarks:
Debt Service
Exp
Ratio
%
Per Capita (cost per citizen)
Person County $ 3,729,514 7.5% $ 97
Avg: Pop Group $ 4,413,154 9.4% $117
Avg: Statewide $13,499,124 11.5% $144
10% ratio: Person County $ 4,597,792 10.0% $122
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Ms. York directed the Board to the graph showing Person County’s debt service levels over
the last five years compared to population-based peer counties as well as a listing of those peer
counties.
March 29, 2011 3
What will Person County’s debt service level drop to when the debt on the 1999 and 2000
borrowings is retired? Assuming Person County does not take on any new debt and maintain the same expenditure
levels as in FY 2010, the debt service ratio would be 2.7% in FY 2016.
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“Why does Person County adopt a CIP before an annual budget?” Ms. York explained these two important processes are done separately, but are very much
intertwined; with the CIP being adopted before the annual budget for several reasons. The
recommended funding amount in the CIP is made in context of the annual budget challenges and priorities. For example, the recommended fund balance appropriation for next FY in the CIP is
only $438,547. This is due to upcoming fiscal challenges, and recommends an appropriate amount in the context of the annual budget. Without knowing the intended fund balance appropriation for the CIP, the Manager would be unable to propose a balanced budget to the Board.
Ms. York reminded the Board that the CIP is simply a plan. The Board will annually take action to approve the CIP to formalize and add legitimacy to the CIP process. However, such
action does not appropriate funds for projects. Board appropriation of funding occurs by Board enactment of project ordinances or by the inclusion of projects and spending in the annual budget ordinance. An approval of the CIP is simply a statement of the Board’s intent to move in the
general direction implied by the CIP.
The group discussed proposed non-funded mandates from the State and its effect on the
CIP, roofing projects praising the recent roof study to plan and project the funding needs, window replacements and the possible need for a study to prioritize for critical needs.
Commissioner Kennington commented his desire for the CIP to include common objectives in the Person Futures Strategic Plan noting the top two relate to construction of a
workforce training center and an allied health building on Piedmont Community College’s (PCC) campus. Ms. York stated the allied health building was a project not recommended in the CIP due to the changing nature of the project. PCC representative, Robert Simons told the group that
PCC may be changing their priorities in a future request as PCC is currently reevaluating the PCC Master Plan and may realign the workforce training center as a higher priority when submitting requests next fiscal year.
Commissioner Jeffers led group discussion related to the proposed Recreation/Senior Center noting he, Commissioner Kennington and former Commissioner Johnny Lunsford met
with YMCA representatives to receive information and general discussion about options, and collaborative partnerships. Commissioner Jeffers wanted the Board to discuss and decide if
further meetings with the YMCA representative are warranted. It was the consensus of the group
for Commissioner Jeffers to pursue future meetings with the YMCA representatives to obtain further information related to options for the proposed Recreation/Senior Center. Commissioner
Jeffers noted the YMCA representatives have provided good recommendations based on past
experiences and would assist with Person County’s sustainability study focusing on demographics and need of services. The group voiced concerns related sustaining the operating
costs of such proposed facility but welcomed further options and information related to public/private partnerships and collaborative efforts between the county, city, schools, hospital, etc.
March 29, 2011 5
Ms. York asked the group if a feasibility study for site/space assessment identifying
stakeholders and a scope of project for the proposed Recreation/Senior Center should be included in the upcoming fiscal year budget, estimating such at a cost of $30,000. The group elected to not
designate funds for a feasibility study at this time but to collect further information on a more
informal basis.
Vice Chairman Puryear stated support of the proposed Recreation/Senior Center project however, noted his first priority is to bring jobs to Person County as well as reminded the Board
of the tough budget year including the potential loss of employee jobs as a consideration prior to committing to such a large project.
Commissioner Jeffers stated support of the Board discussing and evaluating county owned property at a future meeting. Commissioner Blalock stated support of maximizing use of
county buildings as well as using volunteers to run programs/facilities.
Commissioner Kennington stated a community misconception exists related to the current Senior Center. Commissioner Kennington asked the leadership of the Chairman and the
County Manager to correct by making known the Senior Center is operating well under the
direction of the Kerr Tar Council of Government as well as the financial support from the Board already committed for next fiscal year.
The group recognized the great job and new look of the Courthouse as the renovations
are being completed. Ms. York thanked the General Services Director, Ray Foushee for his efforts overseeing the Courthouse renovation work. Mr. Foushee offered to set up a tour for anyone wishing to see the Courthouse.
Ms. York asked the Board if all questions had been answered related to the CIP and if all
were in agreement to approve on April 18, 2011 as scheduled on the Budget Calendar. Commissioner Kennington thanked the County Manager for answering his questions noting there
were still many unknowns. The group nodded in agreement that there were no additional
questions and ready to have the CIP before the Board for adoption on April 18, 2011.
Ms. York thanked the Finance Director, Amy Wehrenberg for her efforts putting the CIP document together.
March 29, 2011 6
RECESS:
A motion was made by Vice Chairman Puryear, seconded by Commissioner Jeffers, and carried 5-0 to recess the meeting at 8:20 p.m. until 1:00 p.m. on April 4, 2011 at which time the
Board will meet as a Board of Equalization & Review.
_____________________________ ______________________________ Brenda B. Reaves Jimmy B. Clayton
Clerk to the Board Chairman