Agenda Packet February 6 2017PERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
MEETING AGENDA
304 South Morgan Street, Room 215
Roxboro, NC 27573-5245
336-597-1720
Fax 336-599-1609
Board of County Commissioners Annual Retreat
February 6, 2017
Future Senior Center
87 Semora Rd., Roxboro, NC
8:30-8:45 Arrival
8:45-9:00 Welcome / Call to Order Chairman Kendrick & Heidi York
9:00-9:45 Setting the Stage: County Snapshot and Trends Sybil Tate
County Services Heidi York
9:45-10:45 Ad Valorem and Vehicle Tax Revenues Russell Jones
- Fire Taxing Authority/VFD Funding
10:45-11:00 Break
11:00-11:15 Sales Tax Revenue Laura Jensen
11:15-12:00 Fiscal Review & Capital Projects Amy Wehrenberg
12:00-1:00 Lunch
1:00-1:45 Budget Priorities:
Economic Dev., Education, CIP & Operating Needs Heidi York
1:45-2:00 Break
2:00-2:45 Budget Wrap-up Heidi York
2:45-3:00 Closing Remarks & Evaluation Chairman Kendrick
Note: All Items on the Agenda are for Discussion and Action as deemed appropriate by the Board.
1
Community Snapshot and TrendsSybil TateAssistant County ManagerFeb. 6, 20172
Community Trends1. Library2. DSS3. Health 4. EMS5. Inspections6. Sheriff7. Econ Dev.8. Ag3
LibraryDesire to work, but lack of computer skills and knowledge to create a resume and cover letterData: 20 people on waiting list for computer classesAg. ExtensionFarm labor shortageData: 267 full‐time ag jobs; 2.7% increase since 2011 compared to .5% increase statewide4
Econ DevelopmentQuality and quantity of future workforceData: high school graduation rate is 76.3%; State‐wide rate is 85.9%No diploma14%Graduate or professional degree4%Bachelor's degree12%Associates Degree11%Some College21%High School38%Educational Attainment, 25+ years (2015)5
4.95.15.50.02.04.06.08.010.012.02008 2009 2010 2011 2012 2013 2014 2015 2016Unemployment Rate, 2008‐2016NationalStateCounty6
11,26511,12210,20010,40010,60010,80011,00011,20011,4002009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Jobs, 2009‐20217
HealthIncrease in STI’sData: 76% increase since 2010; grown from 179 to 316DSSSubstance AbuseData: 54 out 89 children in foster care are there due to substance abuse8
19.9%0.0%5.0%10.0%15.0%20.0%25.0%2010 2011 2012 2013 2014 2015Poverty Rate9
050010001500200025003000less than$14,999$15,000 ‐$24,999$25,000 ‐$34,999$35,000 ‐$49,999$50,000 ‐$74,999$75,000 ‐$99,999$100,000 ‐$149,999$150,000 ormoreHousehold Incomes, 201510
EMSInadequate knowledge about EMS servicesData: 25% of all 911 calls were hang‐ups, open lines, or wrong numbers in calendar year 2016InspectionsGrowth in residential spec. building in the southern part of the county; smaller homes in the $150‐$200K rangeData: Single Family Dwelling permits are up 50% when compared to last year at this time. 11
SheriffNuisance calls; complaints about gun shots firedData:162 complaints about shots being fired; 2296 total nuisance calls in the past 12 months12
8652544654807910611122005020406080100120FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 (est)Single Family Building Permits CityCounty13
39,71241,10205,00010,00015,00020,00025,00030,00035,00040,00045,00050,000FY 2000FY 2001FY 2002FY 2003FY 2004FY 2005FY 2006FY 2007FY 2008FY 2009FY 2010FY 2011FY 2012FY 2013FY 2014FY 2015FY 2016FY 2017FY 2018FY 2019FY 2020FY 2021FY 2022FY 2023FY 2024FY 2025FY 2026FY 2027FY 2028FY 2029FY 2030Population ‐FY00 to FY30Source: State Demographer14
020004000600080001000012000140001600018000FY17 FY20 FY25 FY30Population Projections by Age Group0‐1920‐3435‐6465+15
County Services: Mandated and Optional/Discretionary•Mandated means there is a General Statute requirement for the service•Discretionary means there is no legal obligation to provide the service16
Mandated Services and Mandated FundingMandated Services, Discretionary FundingDiscretionary Service and Discretionary Funding•Social Services•Unemployment•Retirement contributions•Law Enforcement Separation Allowance•Debt Service•Board of Commissioners•Board of Elections•Inspections•Community College•Public Health •Courts•Education•Emergency Management•EMS•911•Finance•Jail•Legal•Medical Examiner•Mental Health•Register of Deeds•Sheriff•Social Services•Soil and Water•Tax•Health Benefits•Senior Center•Cooperative Extension•Economic Development•Education (teachersupplements)•Animal Services•PATS•Administration•General Services•Fleet•Forestry•Veterans•IT•Library•Drug Court, Museum, HALO•Planning•Recreation17
Estimate of Mandated vs. Discretionary SpendingMandated Service and Funding, 10%Mandated Service, Discretionary Funding, 67%Discretionary Service and Funding, 23%18
IN ADDITION:•ACCEPTANCE OF THE REPORT OF UNPAID TAXES•SET ADVERTISEMENT DATE FOR MARCH 4THAd Valorem & Vehicle Tax Revenues19
Special Board of Equalization and ReviewAuthorized by NCGS 105-322Established by Board of Commissioner by resolution on January 7, 20135 member board, serving term of 4 years, along with 2 alternatesMembers appointed by Board of Commissioners, one member is also selected as ChairmanMembers must own property, have maintained residency for 2 years, and be current on property taxes Must appoint members on or before March 6th20
Special Board of E & R Resolution21
Where did the 2016 levy come from?66.24% REAL0.01% OTHER0.35% INVENTORY10.77% MACHINERY21.17% STATE0.49% FARM0.98% OTHER VEHICLE22
What causes the LEVY to change?Real Property-Growth (new construction), splits of parcels, demolitions, changes in exempt status, changes in acreage in deferred (farm use)State Appraised-Changes each year, unpredictable by the CountyEquipment-Additions/Deletions, depreciationRegistered Vehicles-New vehicles/current year depreciation(approximately 42,000 total). Collected by NCVTS (NCDMV).23
Changes in FY2018 Real Property ValuesAdded new construction= +17 Million Actual value for 2016-2017=$2.779 BillionEstimate value for 2017-2018=$2.795 Billion24
Real Property Value Changes, 2007-20172,100,000,0002,200,000,0002,300,000,0002,400,000,0002,500,000,0002,600,000,0002,700,000,0002,800,000,0002,900,000,0002007
2008
2009
2010
2011
2012
2013
2014
201520162017
25
Changes in FY2017 Equipment ValuesReduced for additional depreciation= - $49 MNo numbers available for additional equipmentValue for 2016-2017=$451 MValue for 2017-2018=$402 M26
Equipment Value Changes, 2007-2017050,000,000100,000,000150,000,000200,000,000250,000,000300,000,000350,000,000400,000,000450,000,000500,000,0002007
2008
2009
2010
2011
2012
2013
2014
201520162017
27
State Appraised Property Value ChangesAppraised annually by the StatePerson County will not receive valuation until September 2017Value for 2016-2017 was $888 M, an increase from prior yearDeclined in 2010-2011 and 2011-2012, but increased in 2012-2013 by $47 M to $822 MPrevious highest value was in 2009 at $876 MRecommended value for 2017-2018=$853 M28
State Appraised Property Value Changes 2007 - 2017700,000,000720,000,000740,000,000760,000,000780,000,000800,000,000820,000,000840,000,000860,000,000880,000,000900,000,0002007
2008
2009
2010
2011
2012
2013
2014
201520162017
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All Value Changes, 2007-20173,600,000,0003,700,000,0003,800,000,0003,900,000,0004,000,000,0004,100,000,0004,200,000,0004,300,000,0002007
2008
2009
2010
2011
2012
2013
2014
201520162017
30
Changes in FY2017 Registered Motor VehiclesCollected by NCDMV since September 2013Collection rate is better than old systemThis revenue source has continued to trend upwardBudgeting for $204,000 per month in revenues31
Changes in FY2017 Registered Motor Vehicles - 50,000.00 100,000.00 150,000.00 200,000.00 250,000.00 300,000.00201320142015201632
County Tax Rates0.620.630.640.650.660.670.680.690.700.712004 2005 2006 2007 20082009 2010 2011 2012 2013 2014 2015 2016Rate per $100, displayed by Tax Year33
For FY 18, what will one penny generate?Collection Rate Revenue96.00%$430,95496.25%$431,98596.50%$433,01796.75%$434,04897.00%$435,07997.25%$436,11097.50%$437,14297.75%$438,17398.00%$439,20434
Fire Tax Options1. No Change, Continue to fund Fire Departments out of General Fund 2. Add a Fire ServiceDistrict, based on property values, distributed by Board of Commissioners, or value based on corrected district lines3. Add a Registered Motor Vehicle Fire Tax (flat rate), distributed based on Fire Commission4. Add a Fire ProtectionDistrict by Petition and Vote, distributed based on property value35
Option 1: General FundEach penny on from the General Fund produces $436,110Provides for the most revenue per penny of any option since all taxable properties are includedTo get the funding as provided in the current year ($1,039,970), a rate of .02385 (2.4 cents) was encompassed into the general tax rate of .70 cents36
Option 2: Fire Service District TaxLevy a Fire ServiceDistrict TaxA tax, based on value, charged on all taxable property, excluding property inside the City of Roxboro.Must be distributed based on needs and desire of County Commissioners, since fire service lines do not match parcel linesWill need guidance before May 1st to update situs (change tax records to identify all properties that are in the fire tax district so that new tax is charged correctly)37
Fire Tax, what will one penny generate?Collection Rate Revenue96.00%$354,76296.25%$355,63396.50%$356,50396.75%$357,37497.00%$358,24597.25%$359,11597.50%$360,85797.75%$361,72798.00%$362,59838
Option 2: Fire Service District Tax Will only affect 9 months of DMV renewals for FY18One penny will generate $359,115 for FY18To get the funding as provided in the current year ($1,039,970), a rate of .02896 would be needed(2.9 cents)2 cents would provide $718,230 (an decrease of $321,740)3 cents would provide $1,077,345 (an increase of $37,375)39
ISO ratings and Insurance CostsISO CLASSAGENT 110$9S$7358$7067$7066(optimal rating)$6765$6764$6763$6762$6761$676Max Savings$5940
Option 2: Fire Service Lines41
PERSON COUNTY COMMISSIONERS’FY18 BUDGET RETREATFEBRUARY 6, 2017Sales Tax Outlook42
Looking Back…Expansion of sales tax base effective March 1, 2016Increased revenue projected to be $84.8 millionPurpose was to provide more resources to rural areas of the state43
Requirements for UseMust be spent on one or more of the following:Public Education (can include debt service)Community CollegesEconomic DevelopmentNo % distribution requirementMay supplant funding in those areas44
However…84.8 million only an estimateWhat form would the distribution take?Concerns that the General Assembly would amend the use requirements45
State Estimate vs. Actual Collections through November$229,384.71$145,393.82$0$50,000$100,000$150,000$200,000$250,000July - November 2016Initial State EstimateActual Collections46
Projected Collections as of 6/30$550,523.30$348,945.16$0.00$100,000.00$200,000.00$300,000.00$400,000.00$500,000.00$600,000.00July 2016 - June 2017Initial State EstimateCurrent Projected Revenue47
$8.40 $7.33 $5.76 $5.54 $6.05 $6.09 $6.43 $6.73 $7.06 $7.49 $- $1 $2 $3 $4 $5 $6 $7 $8 $9 $102008 2009 2010 2011 2012 2013 2014 2015 2016 2017*Sales Tax – Prior Years and Projected FY17(in millions)*estimate48
Person CountyFiscal Review & Capital ProjectsPerson County Board of Commissioners Annual RetreatFebruary 6, 2017Amy WehrenbergFinance Director49
2Discussion SummaryMid-Year Comparisons: Revenues and ExpendituresUFB Projection-FYE 2017CIPMajor ProjectsDebt Service-FY 2018Trends and Projections50
Revenues: Mid-Year ComparisonREVENUESDec'15 Dec'16 Difference % Change Ad Valorem Taxes 27,231,275 27,391,286 160,011 0.6%Sales & Other Taxes 2,660,227 2,706,122 45,895 1.7%Fees & Licenses 2,404,460 2,355,100 (49,360)‐2.1%State & Federal Funding3,430,643 3,292,623 (138,020)‐4.0%Other Revenues 194,487 222,582 28,095 14.4%TOTAL35,921,092 35,967,713 46,621 0.1%51
Expenditures: Mid-Year ComparisonDeficit is result of larger increase in expenditures than revenues.EXPENDITURES Dec'15 Dec'16 Difference % Change Personnel 11,261,299 11,533,808 272,509 2.4%Operating 13,464,910 13,363,498 (101,412)‐0.8%Capital480,306 171,475 (308,831)‐64.3%Debt Service 1,077,538 1,054,383 (23,155)‐2.1%Transfers toOther Funds 1,050,737 2,228,025 1,177,289 112.0%TOTAL27,334,790 28,351,190 1,016,399 3.7%NET (Revs over Exp) 8,586,302 7,616,523 (969,778)‐11.3%52
5Unassigned Fund Balance – General Fundas a % of Total Expenditures17.7%29.2%23.4%30.7%26.3%18.5%18.4%25.2%26.0%20.7%*0.0%5.0%10.0%15.0%20.0%25.0%30.0%35.0%2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*% of Total ExpendituresFiscal YearUnassigned Fund Balance as a % of Total Expenditures* EstimatedNote: Mid-year comparison indicates drop in UFB at end of FY17 to 20.7% due to large CIP investment and minimal revenue growth. However, other revenue and expenditure impacts that occur between now and June can alter this projection.53
CIP Funding Requests-SummaryCounty Projects: 3.43M (50.0%)School Projects: 1.84M (26.8%)PCC Projects: 1.59M (23.1%)TOTAL REQUESTS6.86M6Notes:Total requests are $9.36M less than prior year.CIP for FY17 required a fund balance approp. of $2.1M compared to FY16 when only $19K was approved.PCC’s requests decreased by $2.08M. Technology request not included; categorized as operational cost.Schools’ requests remained flat from requests in 2016.Fiber Infrastructure project: not included at this time.54
Person County Senior Center ProjectFinancing for the new Person County Senior Center: $2.256M (estimate)LGC granted authority to finance as a privately placed G.O.Projected debt service payment for FY2018: $230K. Based on 15 year term at 3%, which may change during final negotiations with the lender 7dAcquisition $2,050,000Planning/Eng. 133,635Renovations 40,600Issuance costs 31,765TOTAL$2,256,00055
Public Safety CommunicationSystem Upgrade & Broadband Project8The Board set aside $100K for environmental studies to be done on 4 towers (currently $20,150 remaining).The State will construct 2 towers; leaving 2 towers funded by the County.Includes purchase of radio equipment for public safety organizations and equipment to install on towersLatest estimate is $4M (does not include costs to be determined with 911 tower)Will consider financing options for this projectCurrent timeline for construction bids to be received is April 2017; awaiting agreement with the City for access to 911 tower56
Fiber Installation ProjectStaff is engaged in contract development; expected to be complete by March 2017.Cost estimates for this project are uncertain at this time. $150,000 was set-aside in the FY16 CIP to fund a consultant and some wireless installation.Stokes County received $250,000 from the General Assembly (HB1030) for their broadband project in 2015.No funding options have been determined.957
Airport Runway Extension ProjectSignificant grant opportunity from NCDOTProject is listed for approx.$10.1M with required County match of $1.07M (10%)Forecasts construction period to be FY 2019Board resolution of commitment required by June 2017.10Good: Large economic development potentialBad: Expensive match with already anticipated funding challenges.58
Increase in Debt Service –FY 201811Note: Debt service is increasing with three new debt payments in place for almost $900K in FY18. Represents three approved financings in the span of one year. Debt Service Impact FY 2018 New debt payments: Roxplex & Reroofing (actual)298,162 Senior Center (estimate)232,000 Towers & Broadband (estimate)369,270 Projected Debt Cost Increase899,432$ 59
12Trends and ProjectionsRevenues showing flatter trend than anticipated at mid-year. Expenditures increase due to CIP funding, health insurance and retirement contributions.Current trends indicate decrease in County’s Unassigned Fund Balance at FYE.Anticipating other cost constraints in public safety depts.Over $6.9M in CIP requests for FY18 to be considered. New potential projects could reap positive economic development results; however, significant costs will present funding challenges.Estimating $900K increase in County’s debt service costs for FY18.60
COMMISSIONER’S BUDGET RETREATFY2018Determining Your FY17-18 Budget Priorities•Economic Development•Education•Capital Projects•Operating Needs•Polling on Priorities61
Economic DevelopmentFY17 Budget is $196K + $1.38M for Catalyst fund(catalyst fund increased by $584k)FY17 highlights:Launched Econ Dev. website$250,000 for water line design at megasiteIncreased PT personnel position to FT15% increase in overall budgetFY18 highlights: ovehicle needs: $37K replacement cost, exceeded maintenance budget in January62
EducationFY17 Budget was for PCS:FY17 Budget for PCC:Considerations: study of facilities needs, activity buses, ADA issues Current ExpenseCapital Tech. CapitalCIPDebt ServiceTotal$9,376,614 $159,000 $619,014$848,925$795,722$11,799,275Current ExpenseCapital CIP Debt ServiceTotal$1,111,836 $0 $189,000 $92,037$1,392,87363
Capital Improvement PlanFY18 CIP recommendation will be minimal spending, in order to restore fund balance…Increased $2.1M over FY16.FY18 CIP Highlights:Replace boilers – LEC: $85KRelocate IT: $127KTax software: $375KSchools requesting ~$1.84M in projects(roof of maintenance bldg., bleachers NMS, ADA upgrades Woodland, valve replacement SES, security cameras elems.) PCC requesting ~$1.6M in projects(roof bldg. D)64
Anticipating Operating NeedsAdd a shift to EMS (8FTE’s): $450KAdd 2 911 Supervisors: $115KAdd 1 Deputy to Sheriff’s Office: $65KAdd 1 FTE to Information Tech: $70KVehicles: 3 vehicles cut last yearEmployee Health Clinic: $60KImplementation of Market Study for Health & Human Services Agencies (Year 2): $60K?65
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