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HomeMy WebLinkAbout06-04-2026 Meeting Minutes BOCJune 4, 2026 1 PERSON COUNTY BOARD OF COMMISSIONERS June 4, 2026 MEMBERS PRESENT OTHERS PRESENT Kyle Puryear Katherine M. Cathey, County Manager Sherry Wilborn Michele Solomon, Clerk to the Board Jason Thomas Antoinetta Royster Donald Long The Board of Commissioners for the County of Person, North Carolina, met in recessed session on Thursday, June 4, 2026, at 6:00 p.m. in the Commissioners’ Boardroom 215 in the Person County Office Building located at 304 S. Morgan Street, Roxboro, NC. Chairman Puryear called the meeting to order and recognized a quorum was present. ADJUSTMENTS TO THE RECOMMENDED BUDGET County Manager Katherine Cathey provided an update prior to the Board’s budget discussion. She provided the following update: Public Safety Pay Study •A public safety compensation study is underway due to ongoing recruitment and retention challenges, especially for paramedics and detention center staff. •HR staff are finalizing data, including cost impacts for FY26-27. • Estimated funding need: rough preliminary estimate up to $450,000, later refined to roughly $490,000 when including domino adjustments. New Revenue Projection – Sales Tax • Finance Director Tracy Clayton reevaluated revenue projections. •Current sales tax trend indicates approximately $224,000 more than originally budgeted. Recommendation from the County Manager •Add the extra $224,000 in revenue. •Place it in a contingency line for public safety salary adjustments. If costs exceed the $224,000 •The County may need to return to the Board next year to discuss: o possible fund balance appropriation, o alternative revenue sources, or o using lapsed salaries. June 4, 2026 2 Chairman Puryear stated that he supports the overall recommended budget. He stated that he would like to reduce the property tax rate from 63¢ to 62¢, requiring an estimated $795,000 in offsetting revenue or reductions. Commissioner Long stated that he was in agreement with Puryear. He recommended holding spending at current year levels if possible. He discussed regional EMS pay and had concerns that competing counties, such as Durham, and Orange, may soon increase pay. County Manager Katherine Cathey recommended moving forward July 1, 2026, with adjustments to salary for EMS to get them where they need to be, rather than waiting. She stated that Human Resources Director Sonya Carver would be looking at the completed pay study and could make those adjustments. Chairman Puryear asked where the County stands on EMS fees. Finance Director Tracy Clayton provided the following information related to EMS revenues and Medicaid reimbursement: •EMS revenues normally include about $235,000 in Medicaid reimbursement. •This year, the County expects only ~$60,000. • Medicaid reimbursement process changes are contributing to the shortfall. •Billing company and NC FAST are working with the County to ensure reporting is correct. •Despite this drop, EMS revenues will likely break even with original estimates due to other offsets, the County has received $2 million of the $2.17 million that was budgeted. Chairman Puryear commented on Fund Balance appropriation and asked the reasoning for the increase of $1.2 million. Cathey stated that $1 million of that increase is to utilize DSS fund balance to do Human Services Building renovations (one-time expense), with a 50% expected reimbursement from the state. Chairman Puryear asked about interest earnings, and if the County has looked at other types of investments to get a better interest rate. Clayton stated that the County is getting the best interest rate. She stated that she implemented the cash management strategy, and it was a success. She stated that staff reviews balances in the bank account weekly and that money is moved from Truist to the interest-bearing account, which is how the County has been able to recognize the excess revenue. She stated that the interest-bearing rate is between 3.5 and 3.75. June 4, 2026 3 Chairman Puryear had questions related to the Community Risk Reduction line item, with an increase of $94,000, and cap-out vehicle at $31,000. Clayton stated related to the vehicle, that the increase is for a truck top and a bed slide that will enable storage of equipment and supplies used for fire and emergency services investigations and inspections. Cathey stated that it is a replacement vehicle for the Fire Marshal, and the cost is for upfitting the vehicle once it arrives. Chairman Puryear asked Tax Administrator Russell Jones to provide revenue projections and discuss the tax collection rate. Jones reported the following: •Current collection rate: 99%, slightly below last year’s record numbers. •Increasing the assumed rate from 98.5% to 99% could net approximately $233,693. •Jones strongly advised against raising the projected collection rate due to: o concentrated tax base, o volatility in large industrial taxpayers, o historical examples where a single bankruptcy significantly lowered collection. Jones provided the following related to state-appraised property revenues: •State-appraised property makes up 16% of the tax base. •Numbers are not available until September 1 (after budget adoption). •County contacted the State for preliminary estimates but received no firm data. •Due to unpredictability, the County is budgeting this category flat, despite evidence that Moriah Energy Center may eventually increase valuations. Puryear asked Jones if he felt comfortable raising expected state revenues by $795,000. Jones stated that he is not comfortable and reiterated the unpredictability and risk. Commissioner Royster asked for clarification on the revenues for Moriah Energy Center. Jones stated that the state-appraised numbers are not available until September 1 and make up 16% of the tax base. He stated that in the past, the percentage has been higher. He stated that he has reached out to the Department of Revenue, and they are advising to be extra conservative this year. He stated that most years have been budgeted flat. He stated that there is nothing yet on the books to report. Chairman Puryear re-visited lowering the tax rate by 1 cent. He asked for recommendations to offset funds to lower the tax rate. Clayton stated that the fire tax fund has a healthy balance, and her recommendation would be to take it from that fund. June 4, 2026 4 Puryear proposed using $571,855 of the general fund balance to support a 1 cent tax reduction, with the expectation that naturally occurring unanticipated revenues during the fiscal year will replenish the fund balance. Cathey stated that the current recommended budget includes $3.317 million in fund balance appropriation, and that $2 million is DSS fund balance, and $1 million of that is for Human Services Building renovations, as previously stated. She stated that $384,000 is Health fund balance, $204,000 relates to ARPA funds directed to CIP, and approximately $600,000 is regular general fund appropriation used strategically to avoid a tax increase. Commissioner Long mentioned ways to lower the tax rate to include discussions related to merit increases, COLA, and the seven new positions. He suggested approving only two positions to save approximately $400,000. Commissioner Royster noted that positions in DSS and Tax Office were state recommended following the peer reviews that the Board requested. She expressed concerns about failing to implement state-recommended positions. Vice-Chair Wilborn inquired about the pay study for EMS. Human Resources Director Sonya Carver stated the following: •Detention adjustment estimate: ~$200,000 • EMS adjustment estimate: ~$180,000 •Total impact across both departments: ~$490,000 County expects to offset part of this through: • lapsed salaries • reduced overtime if vacancies fill •contingency funds Wilborn stated that she looked back at previous tax rates, going back to 2013, and this is the lowest rate. She stated that staff has worked very hard to squeeze a turnip already. Chairman Puryear stated that he would like to see the following: •Retaining the $224,000 Sales Tax Increase – This will remain allocated for public safety pay adjustments, not tax reduction. •Reducing the Tax Rate from 63¢ to 62¢ – Funded by increasing the fund balance appropriation by $795,000. •Keeping all recommended positions in the budget – The budget ordinance will include all 7 new positions. Clayton shared the following budget calculator with what was proposed by Puryear: June 4, 2026 5 June 4, 2026 6 Puryear asked Wilborn if she was comfortable with the calculations and proposed budget. Wilborn had questions related to industry equipment for Jones. She asked if Jones was seeing any new industry equipment, or other things related. Jones replied that he is not aware of anything that the County has incentivized through economic development that is going to be coming on the books. Commissioner Thomas stated that Puryear has been on the Board for twenty years, and has more experience with the budget than the rest of the Board, and that it is risky, yet he is comfortable with and supports Puryear’s recommendation. Commissioner Royster stated that she is in agreement in lowering the taxes and noted that she will always be in favor of revenue neutral. She stated that this is risky; however, she feels that once we are able to include the numbers for Moriah Energy Center, she feels more comfortable. Vice-Chair Wilborn stated that is actually what makes her feel a little more comfortable, as she has been out there to the site and seen all the work that they have done in the last year. Commissioner Long stated that he is in agreement with Puryear. He stated that he does not think there will be a problem with the revenues coming in, unless there is some kind of catastrophic issue worldwide. Clayton noted that the FY26-27 is a rebate year for nonprofit sales tax refunds. She stated that this could reduce actual revenue compared to projections, and that sales tax estimate has already been pushed to the maximum comfortable level. She stated that last year was the first time in a number of years, that the County exceeded the 25% fund balance. She stated that Cathey has done a very good job at managing all of the expenses this year. She expressed concerns related to unexpected items that may come up, in theory, and confirmed fund balance remains strong but advised caution with aggressive appropriations. Cathey stated that last year the County ended slightly above 25% fund balance, approximately $771,000 above threshold. She stated that the plan, not yet executed, was to transfer that to the Capital Investment Fund (CIF), providing additional cushion. She recommended against making that transfer due to the board’s intent to increase the fund balance appropriation for FY26-27. June 4, 2026 7 A motion was made by Commissioner Royster and carried 4-1 to direct staff to prepare a budget ordinance incorporating: • the 1¢ property tax decrease • public safety contingency funding • increased fund balance appropriation • and all recommended positions Commissioner Long voted in opposition. Cathey confirmed that staff will prepare the updated budget ordinance for adoption at the June 15, 2026, meeting. ADJOURNMENT A motion was made by Vice-Chair Wilborn and carried 5-0 to adjourn the meeting at 6:50 p.m. ___________________________ Michele Solomon Clerk to the Board _____________________________ Kyle Puryear Chairman