STATE OF NORTH CAROLINA ) COUNTY OF STOKES  OFFICE OF THE COMMISSIONERS STOKES COUNTY GOVERNMENT DANBURY, NORTH CAROLINA THURSDAY FEBRUARY29,2024  ) ) )  Thel Board of Commissioners oft the County of Stokes, State ofNorth Carolina, met for a Financial Planning and Capital Needs at the Camp Hanes Retreat Center located in King, North Carolina on Thursday, February 29, 2024 at 9:00 am with the following members present:  Chairman Brad Chandler Vice Chairman Keith Wood Commissioner Sonya Cox Commissioner Ronnie Mendenhall Commissioner Rick] Morris County Personnel in Attendance: Finance Director Lisa Lankford Assistant Finance Director Tracy Aaron Other Attendees:  Interim County Manager/Clerk to the Board Amber Brown  North Carolina Association of County Commissioners (NCACC) Amy Cannon, NCACC Outreach Associate Johnna Sharpe, Government Operations Expert, Consultant Denise Canada, NCACC Fiscal Policy and Research  Director DEC Associates, Inc:  Doug Carter, President Andrew Carter, President  Chairman Chandler called the workshop to order.  Interim County Manager/Clerk Amber Brown presented the opening comments:  Welcome everyone Workshop Stokes County  Thank all those for participating in today's] Financial Planning and Capital Needs Would also like to thank the YMCA for allowing us to hold our workshop here Thank the Commissioners for: focusing ont the Financial Planning and Capital Needs for  1  February 29,2024  Financial Planning/Capital Needs Workshop    Appreciate the opportunity to work with North Carolina Association of County Commissioners (NCACC) and DEC Associates (DEC)-looking forward to continuing working with both groups for the betterment of Stokes County  Introductions and Agenda Overview  Amy Cannon, NCACC Outreach Associate, presented the opening comments: Thank you for allowing NCACC toj participate in the Financial Planning and Capital Needs Workshop and the County Manager Recruitment Process This is your session, and we want you to be able to get some good feedback Want this session to be interactive, sO please stop us ifyoul have questions or comments This session will be very important as the staff begins to prepare the Fiscal Year 2024-25 Have. Johnna Sharpe, Government Operations Expert, NCACC Consultant, and Denise  during the workshop County Budget  Canada, NCACC Fiscal Policy and Research Director here today  Director Denise Canada presented the opening comments:  Glad to bel here factors presentations Stokes County Demographics  Been with NCACC about two years doing demographics, tax issues, and economic  Director Canada presented the Stokes County Demographics power point presentation: (a copy  ofthe presentation can be obtained from the Clerk to the Board)  Population  Graph using a 10-year census data (rapidly increasing around 1980-2020) County population has declined slightly from a 2010 peak 11,400 new residents between 1980 and 2020 - little over 43,000 residents currently 71%1 has moved into unincorporated areas Municipal residents account for a slightly larger share of population in 2020 than 1980 Chairman Chandler confirmed with Director Canada that she could provide the Board with the number of] King residents that reside in Forsyth County compared to the number residing in Commissioner Cox noted that she believes those living in King that are in Forsyth County incorporate about two neighborhoods- - the majority arei in Stokes County.  Stokes County at a later date.  Director Canada continued with thej presentation:  Stokes County 2023:  More 50-+ than younger Largest group of men are ages 50 & 58 (tied) Largest group of women is age 57 Notable low point in 40s  Must look at the need for services for the older population such as medical  2  February 29, 2024  Financial Planning/Capital Needs Workshop    Demographics  O Presented graphs regarding Men and Women in Stokes County compared tol Men Thei median age in Stokes County is 45.9: years, higher than 77 other counties in North Commissioner Morris noted the need tol know how the current age ofr residents in Stokes County Chairman Chandler noted that there are al lot of retirees moving into Stokes County from out of Commissioner Cox noted the number of nursing homes and retirement villages in Stokes County that contributes to the age demographics with al lot oft the new homes that are targeted toward the  and Women in North Carolina  Carolina effects the school. state.  retirement age group. Economy  51%ofcounty residents compared to North Carolina:  NC Stokes 12% 21% 10% 20% 25% 11%  Advanced Degree Bachelors Associates Some College Diploma/GED Nol Diploma  6% 11% 11% 23% 38% 13%  Chairman Chandler confirmed with Director Canada that the data comparing Stokes County to  North Carolina as it relates to educational degrees is from the latest census,  Director Canada continued: Place of Work (estimate) Yadkin) Work in Stokes 14% Work in Mecklenburg 6% 3% work out of state  Work in bordering NC Counties = 58% (Forsyth, Surry, Rockingham Guilford,  Data shows al lot oft those from Stokes County works in Forsyth and Guilford Counties There are pros and cons regarding people working outside their county, but in general most counties want their people to work int the county they live as most people spend On the other hand, working in larger counties can increase the median income average Vice Chairman Wood noted this is hard to track accurately as he has worked the past 20 years at  money where they work which increases the sales tax  home for a company based in Gastonia whose home office isi in' Texas.  3  February 29, 2024  Financial Planning/Capital Needs Workshop    Director Canada continued her presentation:  Unemployment has steadily declined since the height of the pandemic The rate in Stokes follows the State's overall trend  Chairman Chandler requested additional information regarding the County's workforce which  Director Canada stated she could provide later. Director Canada continued her presentation:  Stokes County saw a 3%i increase in Gross Domestic Product from 2017-2022 Believe this is a very, good number - County is holding its own  Statewide change -1 11%  The 2022 drop suggest that inflation rose more than income (per capita income adjusted  fori inflation)  O Stokes tracks closely with the statewide trend  Commissioner Morris commented: about these items)  Would like two topics to bei included in today's discussion: (how we should bei thinking Duke Energy located in Belews Creek will most likely be converting the existing coal plant to ai nuclear plant which will definitely increase the County's tax base Destination Event Center and Equestrian Center an individual is investing several million dollars - will include a winery, restaurant, overnight lodging, etc. Would be interested in how we can: maximize these two items  by 2035- - along with an increase of employees  Director Canada: responded:  Will be glad to discuss that later  Sales Taxes  Second largest revenue source for the County with property tax being number #1 Graph shows that February 2021 was 27%1 higher than February 2020 Stokes County tax collections are trending up slightly Some counties have begun to see slight declines or leveling out There have been some significant changes over the past few years  Optional Quarter Cent' Tax  47 Counties have levied the Article 461 tax 22 Counties have never held ai referendum  31 Counties have: failed to pass ai referendum (includes Stokes County -attempted  twice)  Taking Article 461 to referendum  Voter approval = voters must approve additional taxes under Article 46 Not Binding - the referendum is advisory only - final decision is up to thel Board Only 1 annually - only one referendum allowed per 12-month period Persuasion - Counties: may use public $ to educate votes but not to sway or  ofCounty Commissioners  persuade  4  February 29, 2024  Financial Planning/Capital Needs Workshop    Commissioner Mendenhall commented:  Spoke about an organized group ofl ladies who made phone calls regarding ai referendum to build a new high school in Davie County (bond referendum passed 51%1 to 49%)-  bond had previously failed Director Canada continued her presentation:  Discussed specific language must be on the ballot  Persistent NCACCLegislative Goal - Seek legislation allowing counties to include specific language on the sales tax referendum ballot designating how thej proposed  proceeds will be spent  Questions  Director Canada noted she would be happy to answer questions.  Chairman Chandler commented:  One pressing issue is our school system = number of facilities with declining enrollment Wel havel lots ofhousing developing in the western part oft the county Seeing a lot of people moving into Stokes County - retired with no kids  How do we plan fori future enrollment  Director Canada responded:  As enrollment declines, it is important to look at the amount of funding being  appropriated to the school system Commissioner Cox commented:  Previously spent 15 years on the Board of Education  Served on thel bond referendum committee to build West Stokes High School and Piney We were given advice from a consultant on how to gett the bond: referendum to pass; we Believe that also holds true with passing a sales tax referendum, you dol have to havea private group who can spend their funds or raise funds to get ai referendum passed Rockingham County solicited aj private group to promote a sales tax referendum Wei need to move quickly ifwe are going to get aj private group together to promote a Chairman Chandler noted the possibility oft talking about the appointment of a committee ona future agendal but would need to check with County Attorney Browder regarding the limitations oft the discussion since no county funds can be spent on promoting a sales tax referendum.  Grove Middle School did what was advised and it passed  sales tax referendum this November  DEC President Doug Carter responds:  Alot of counties appoint the Chamber of Commerce to be the spokesperson Chamber of Commerce organizes and raises the funding - they define what is needed  such as aj private group  5  February 29, 2024  Financial Planning/Capital Needs Workshop    The Board briefly discussed the school system's sales tax that comes tot the County and must be  appropriated by the Board of County Commissioners.  Commissioner Cox commented:  Just received an answer to aj previous question - how many residents of] King live in  Forsyth County versus those living in Stokes County Out ofthe 7,739 residents 625 (8%) live in Forsyth County Do not believe there are any businesses in] Forsyth County Appreciate the opportunity of being here today Will be happy to further discuss issues at a later date ifneeded  Director Canada concluded:  Provided additional information regarding NCACCI Legislative Goals Procedures for this  year  Chairman Chandler recessed the work session for ai five-minute break. Chairman Chandler called the recessed work session back to order.  Financial Planning and Capital Needs  NCACC Outreach Associate. Amy Cannon presented the following information:  Commended the Board for completing thel Planning Survey and: for being so thorough Wanted to share the data from the survey- data shows that there was ai tremendous amount ofc overlap int the responses- - Board members are: really together as what they see This information is good for staff to have when starting the budget process as far as Question #2- - How do you envision the county evolving over the next 51 to10 years?  are the challenges and opportunities in thei foreseeable future  operational and capital needs  Increasing growth opportunities from tourism Growth will vary across the county Broadband will support growth Public Safety (Sheriff, Fire, EMS)?  Question #3 - What do you foresee as thet topi three (3) major challenges near term in:  Competitive salaries (also across the board) Updated technology and equipment  Attracting and retaining well-trained staff (same issue across the state) Fire- -1 need for paid firefighters as volunteers insufficient (also a challenge across the state - many counties have raised fire tax in order to hire staff) Question #3 - What do you foresee as the top three. (3) major challenges near term in:  (Education)?  Build relationship with School Board Take Forsyth Tech-Stokes to next level  School capital planning: aging schools and declining enrollment  Question #3 - What do you foresee as the top three (3) major challenges near term in:  (Human Services)?  6  February 29, 2024  Financial Planning/Capital Needs Workshop    Employee retention: size of caseloads (majori issue across the state especially with  social workers who are burned out) Increase interest in foster parenting Unfunded mandates such as. Medicaid Expansion Health Board's strategic plan/Opioid Crisis (Community Planning and Economic Development)? Carrying out 2035 Comprehensive Plan (director or public/private partnership) (General County Administration)? January 2025 Reappraisal Restart Financial Planning Cross-training; staff capacity Not tax increases Health care/Critical access hospital School facilities Animal Control Question 5- On-going or planned projects County Buildings Criminal Justice Public Safety Education Other  Select hospital/urgent care provider and location (including EMR) Question #3 - What do you foresee as the topt three (3) major challenges near term in:  Economic Development ini transition -1 need to decide on organizational structure Question #3 - What do you foresee as the top three (3): major challenges near term in:  Technology Needs (complicated and very expense)  Add staffing to County Manager's Office and Finance Department as well Question 4- What are the biggest concerns or issues raised by esidentsystakcholders?  Board ofElections Renovation Courthouse Addition New Animal Shelter Critical Access Hospital Community College Broadband Moratock Park Technology  Public Schools- - aging facilities and number of facilities  Question 6- What do you consider the County's current top priorities? Healthcare availability (hospital decision); mental health treatments Financial and capital planning (schools and county); increasing fund balance  Broadband and Updating infrastructure  Public Safety Animal Shelter Maximizing tourism  Salaries - attracting and retaining staff (also across the state)  7  February 29, 2024  Financial Planning/Capital Needs Workshop    Outreach Associate Cannon turned the session over to Consultant Johnna Sharpe. NCACC Consultant Johnna Sharpe presented and discussed the following Financial Planning and Capital Improvement Plan (CIP) power point presentation: (a copy of the presentation can be  obtained from the Clerk to the Board) Capital Improvement Planning: Today's Session Goals  Gain a common understanding of what a CIP is and why iti is important Understand the steps involved in creating a CIP and discuss how the steps can Develop an outline ofkey tasks and timeframes for building the CIP - create "a  best be accomplished in Stokes County  Plan for the Plan" County Responsibilities:  Steps in] Developing a Comprehensive CIP Assessing Current Needs Setting Goals and Objectives Identifying and Prioritizing Projects Implementing and Monitoring O Bringing it all Together- - Building the CIP Loto ofmini plans go into developing a CIP Capital Improvement Plan (CIP)  Financial Planning and Budget Allocation (presentation by DEC  Associates)  A strategic document that outlines the County's facility and infrastructure needs Ac comprehensive approach to managing capital assets over. an extended period, AI roadmap for allocating resources efficiently, prioritizing projects and ensuring Provides a systematic approach to infrastructure management & planning Helps prioritize projects based on community needs and available resources Enhances transparency and accountability in decision-making processes Improves coordination among various departments involved inl key projects Provides direction for the delivery of services to the residents of Stokes County ACIPI keeps everyone on the same page- - Board of County Commissioners, Staff, Stokes County residents, stakeholders - aj public document that anyone can see Can serve as a core fundamental planning document = you have an operating budget and  and the projects necessary to address them  typically to 5to 7 years  timely delivery of essential improvements  Benefits ofa CIP  Facilitates long-term planning and budgeting  Schools are al huge component oft the CIP  capital budget  What makes something a CIP versus an operating budget item?  Cost - common threshold $100,000; for a single project or where phased  amounts exceed $100,000  8  February 29,2024  Financial Planning/Capital Needs Workshop    Length of project - longer than a year or recurring program  CIPisarolling, funded plan  o For aj project that will occur over multiple years, all funding is appropriated at the time ofcontract award to eliminate. any project risks associated with funding Only the first year ofa CIP is appropriated as part of the budget process Add the next year = becomes an integral part oft the budget Revise or change existing projects based on new conditions or priorities The CIP is not a "static" document, it requires regular attention andi monitoring  The plan is update annually to:  County responsibilities - CIP Major Categories  Public Schools Land acquisition Design Construction Major renovations Criminal Justice Court facilities Detention facilities Fire Tax District Fire Stations Apparatus County Buildings New facilities Renovations Roofs and Building Systems Public Safety EMS Facilities Radio Systems Animal Control Other. Areas  Technology - long range planning to know what is coming up, what and  when updates are needed  Chairman Chandler commented:  Had a recent conversation regarding Stokes County not having a landfill and all trash has The question came up - What happens if Forsyth County suddenly stops allowing us to  tol be taken to Forsyth County bring our trash there?  Interim County Manager/Clerk Brown responded:  Director of Public Works has been looking at other possible options in case that does  occur one day  Consultant Sharpe continued with her presentation:  Land: fields are very complicated, expensive and no one wants a land field near their house-h having aj plan is very important and looking ahead is very important  9  February 29, 2024  Financial Planning/Capital Needs Workshop    Willl bej providing some examples of CIPS and their fundamental principles in other counties such as Wake County - actually was responsible for Wake County's CIP for  over 12 years CIP Summary  Will have broad major categories (sometimes called elements) broken into subcategories (call programs) that are then broken down into projects You will always have projects such as replacement of roofs which you need to know about for each county owned facility the estimated cost, the timeframe, Every CIP is different from county to county because the CIP is defined for that particular county - your CIP will detail the needs of Stokes County Itwill become the umbrella on multiple plans for various responsibilities and  (replacement of roofs, paving, technology, etc.)  etc.  initiatives for the County  DEC President Carter confirmed Interim County Manager/Clerk. Brown that that the last county facility study was done in 2020 and the last school facility study was done in 2022. (done by  Peterson and Gordon Architects) Commissioner. Morris added:  Ifall the existing schools were completely renovated, the cost would be approximately Some immediate renovations needs would be approximately $50 million (estimated by  $90: million (estimated by Peterson and Gordon)  Peterson and Gordon)  Just remember with all those plans - you have got tol have money  Consultant Sharpe continued with her presentation:  Until you have a CIP - you don'tk know how much money you actually need The CIP is ai reference to what the County needs - it details the needs and prioritizes the Do not think ai full CIP can be developed within the next two months for this year's budget, realistically thinking about a CIP for Fiscal Year 2025-26  needs  Unless yous start, you will never have a CIP  Commissioner Mendenhall commented: courthouse and the renovations done, it will be mandated  Spoke about the mandate from the Court System regarding security needs at the existing Remember Commissioner Morris confirming with the Judge that ift the renovation is not  Commissioner Morris noted the mandate regarding the jail expansion that was done several,  several years ago.  Consultant Sharpe continued with her presentation:  Would like to start with developing a comprehensive CIP  O Step One - Collecting and analyzing data on current conditions and performance  10  February 29,2024  Financial Planning/Capital Needs Workshop    What ist the condition of facilities and infrastructure possible Are there health and safety issues to address Doi facilities provide adequate capacity for the: future Can needs be accommodated by renovation or expansion ori isa When do roofs, HVAC, security systems, etc. require replacement Who knows the answer to the above questions- someone who can identify  considerations  new: facility needed -how do we. know  the needs  Interim County Manager/Clerk Brown commented: Have made a: few comments about the facilities:  As far as health and safety issues have two facilities in Danbury -1 the old Courthouse and the old Danbury School which currently both house county staff Old Courthouse houses the School System Administration and a county Old Courthouse was built 1904 which has historic character and value to Old Courthouse does have ADA accessibility issues that were Old Courthouse needs - new roof, brick/mortar-joint issues, new windows, new interior finishes, new HVAC, newj plumbing, new electrical, etc. In2 2021 estimated cost was between $2-$4 million Built in 1925 and does have similar needs Houses three county departments Old part ofjail needs some renovations . plumbing  Old Courthouse:  department (Soil/Water) the County grandfathered in  Old Danbury School  Vice Chairman Wood noted that there are people out there that has plans for the Old Courthouse.  Commissioner Cox mentioned:  Added that the estimates given by Architects Peterson and Gordon regarding the schools also provided advice about what was the best option -1 renovation or new: facility - there were recommendations that some oft the facilities because ofage and cost - better to build Confirmed with Ms. Sharpe that the County'sl Public Works Director, who is responsible for county facilities, would play a key role in the developing the facilities needs  anewi facility  Consultant Sharpe commented:  Schools are a different category - there are some requirements that have to be met when When a new building replaces one oft these older facilities, the Board then has to have a plan as to what happens with the older facility - that has to bei in the plan Those things mentioned by Amber have tol be listed and given aj projection oft time and  itcomest to renovation versus new: facility  cost  11  February 29, 2024  Financial Planning/Capital Needs Workshop    CIP Team includes the county manager, finance director, facility manager, IT-t that is the core group with each county adding integral stafft that are needed to accomplish the goals  ofthe CIP  Chairman Chandler commented:  Have one director that is over facility needs who also has other county duties Some of the departments have limited staffs such as the finance department With adding this CIP, the county has departments that don'thave adequate stafft to follow  up on issues Consultant Sharpe added:  County may have to deal with internal capacity issues that you may have to be addressed for the CIP to be a success - that can be addressed with additional staff or a consultant There may be needed investments for a CIP to be successful in Stokes County  Consultant Sharpe continued her presentation:  Step 2-1 Establishing criteria to use evaluating capital projects  What objectives should the CIP accomplish - possible considerations: Ensure buildings are safe for workers and visitors Are buildings operating efficiently - can energy savings be attained to reduce long-term operating costs Byi investing in haliwafanstphalaby, can services levels ore quality ofl live be improved  Questioned the Board - What are the goals and objectives that are aj priority for  this Board?  Vice Chairman Wood commented:  Once developed, would want future Boards to use the CIP - something ongoing that can  beu used, adapted, amended, etc. -1 notj just put on a shelf  Chairman Chandler commented: the Board every two years  Believe a five to seven (5-7): year CIP is needed especially when there can be change in Spoke briefly about the CIP that he dealt with inl his prior employment  Consultant Sharpe added:  Another important thing to consider is efficient energy systems that need replacement Must also remember that with renovations can also increase spending - such as adding  that could save funding over time more space increase in utility costs Consultant Sharpe continued her presentation  Step 3 - Planning for the long-term needs oft the County (seven-year horizon) How are projects identified, and by whom? - Possible considerations Data driven master plans/consultant assistance  12  February 29, 2024  Financial Planning/Capital Needs Workshop    Stakeholder input - county departments and the community -  extremely important Critical needs assessment County vision  Who are the critical stakeholders to engage in capital planning and how best can County department heads know what is needed for their facility and their  they be engaged? department  School system is a critical player in the CIP Need to determine who else needs to be a stakeholder  Commissioner, Morris noted that grants could be applied for renovating the old Courthouse.  Consultant Sharpe continued her presentation:  Capital needs identified from the Board of Commissioners' surveys:  County Buildings ) Board of Elections Renovation Criminal Justice o Courthouse Addition Public Safety New Animal Shelter Critical Access Hospital Education Community College Other Broadband Moratock Park Technology  Public Schools (aging, number of facilities)  Commissioner Mendenhall commented: Things can change within the CIP  o Spoke briefly about the Board of Elections Renovation - current renovations at  the old bank building and the savings  Consultant Sharpe continued her presentation:  The uniqueness of School Funding (NCGS 115C-521)  Responsibilities:  Local Board ofEducation: and apparatus County) County Commissioners:  Provide adequate school buildings equipped with suitable school furniture Present the needs and costs ofbuildings, equipment, and apparatus each year when the school budget is submitted to the tax-levying authority (the  13  February 29,2024  Financial Planning/Capital Needs Workshop    Have a reasonable time to provide the funds which they upon investigation shall find to be necessary for providing for buildings The challenge is designing aj process to reach an agreement on what the bolded Jointly approved school facilities planning guidelines, include enrolment  suitable equipment  terms mean projections  Believe there are three critical components:  School Capacity and Enrollment (increasing or declining enrollment) Building Guidelines- = renovation, lifecycle replacements, new school  sizes and standards Safety and Security Support Facilities Energy and Environment Issues County Population Projections School-age Population Projections Municipal Development Plans Enrollment by School and' Teacher/Public Ratios Facility Operating Costs Per Pupil Regular communication between both Boards Board Leadership Meetings  Adata-driven, long term school CIP plan that follows the planning guideline  Regular frequency, on-going dialogue Attendees: Chairs and' Vice Chairs, Superintendent, County Manager, Finance Officers when appropriate Plan agendas for joint meetings to include objectives and content Regular Full Board Joint Meetings to include Topics County Financial Planning Updates - Capital and Operating School Budget Requests (Operating & Capital)  tol be presented  School Capital Planning Enrollment Updates Major Initiatives Updates  Commissioner Morris commented:  o Communication between both Boards is the worst it has ever been since my association The Board ofEducation first came to the Board and asked how much funding was available and then they would give us aj plan according to the funding First time I was ever asked toi fund something without aj plan  with the County as a manager and commissioner  Commissioner Cox commented: is on their website  The Board of Education did have aj population study looking at enrollment in 2022 which Believe their question was what was our funding capacity for the schools  14  February 29, 2024  Financial Planning/Capital Needs Workshop    Believe they were asking us for a funding amount - something that we couldn'tjust give  them without knowing whati iti is for  Consultant Sharpe added:  A lot ofcomplex issues that have to be laid out -1 understanding the long-term issues One critical point regarding schools in Stokes County - student population projections are declining, but county population is going up - that means you are probably attracting people who do not have school age children How does this change the service of delivery andl how should that change the funding for the school system from an operating basis as well  Commissioner Cox commented:  One oft the issues regarding school age population particularly in King - years ago there were a lot ofmoderately priced homes (starter homes) that were built in King that attracted families with children - some oft these the kids are already out ofs school but AI lot ofthe houses currently being built are not starter homes attracting those families There are a lot of people wanting to move into the King area just not enough houses One thing that could tip that situation would be the availability ofhomes for buyers with Now that 74 is connected to Guilford County - you have that big corridor- - you can bei in Consultant Sharpe stressed that Municipal Development Plans are key when it comes to student population - are they building homes that will attract families with school age enrollment. Commissioner Mendenhall noted that some of the homes hel has seen going upi ini thel King area are starting out ini the $400,000s which could bel hard for a lot of families starting out with small kids unless they both have great jobs -1 to be able to a $400,000- home especially with the  these developments are still full with school age children right now kids  There are several planned developments going up in the King area  Kernersville in 10-12 minutes  increasing ofinterest rates. Consultant Sharpe commented:  Have to look at teacher/pupil ratio and whether that is cost effective especially in schools with declining enrollment- - determine iftl that is a good use oftaxpayer dollars  Would need to look at: facility cost per pupil  Chairman Chandler commented:  Briefly discussed annexation and housing developments (subdivisions) that impact the County when they are built just outside the city limits - not part ofthe city but close enough to enjoy the added amenities of the city such as: shops, restaurants, fast food,  grocery stores, etc.  15  February 29, 2024  Financial Planning/Capital Needs Workshop    These not being in the city fall into services provided by the County such as law Due to the recent decision about applying for a school grant for King Elementary-Iam Associate Amy Cannon noted that the Board (possibly manager, chair, and vice chair) meet with city officials on an ongoing basis -just as suggested for the Board ofEducation = there has to be Consultant Sharpe agreed that communication and meeting with city officials as well as the Board of Education and school officials are! key to being able to address issues (good agendas,  enforcement, EMS, garbage, etc. taking the hits ofbeing anti-King  Itis difficult to forecast- - how do you deal with that  communication.  good dialogue, and getting things out on the table). DEC President Doug Carter commented:  The one thing now that is ovérwhelming is the cost in building a new school 15-20 years ago, we worked on aj project in Sampson County tol build three (3) new high schools which cost approximately $100,000 million - nicel high schools Right now, to build ai new high school will cost approximately $100,000 million The School of Arts High School being planned in Durham is estimated over $200 million The County needs to. know from the Board of Education where the needs are, where the Ats some point in time, the County has to decide how much funding can the County afford Iam in construction, Ihave asked the question to the folks in Raleigh and can't get an answer, how can aj private or charter school build a new school for the fraction oft the cost  because oft the uniqueness ofi its facility  declining student population is, the urgency of the needs, etc.  Vice Chairman Wood commented:  ofb building aj public school Associate Cannon responded: They don'thave amenities Vice Chairman Wood continued:  Some oft these charter schools, it seems, can go up overnight -1 they are safe Counties are being made to build public schools like a' Ta Mahal Think some ofthis needs to start at the state level  Commissioner Cox added:  State does determine and mandate the size of classrooms, class size, etc.  Should be some: flexibility  DEC President Carter noted one going up in Apex has a parking deck.  Consultant Sharpe continued her presentation:  16  February 29,2024  Financial Planning/Capital Needs Workshop    Turned the floor over to DEC Associate Doug Carter for Step 4: Funding the Plan -1 to be  addressed by DEC Associates Financial Presentation - DEC Associates, Inc. the presentation can be obtained from the Clerk to the Board)  President Doug Carter, DEC. Associates, Inc. presented aj power point presentation: (a copy of  Key work - accountability per capita Will bet talking:  Explained the recent building ofs school construction inl Meckienburg County based on  About the partnership between the County and DEC Associates Status of Current Capital Improvements Fund Transactions that have been Issued since 2008 Potential Current Financial Planning and Capital Needs Capital Improvement Fund Planning and Calendar  Partnership Between the County and DEC. Associates History oft the County and DEC. Associates  Engaged by the County int the summer of2008. - Reengaged 2024 Goal to create a capital funding plan for school building projects Some needs were becoming urgent and costly especially for schools Prioritize and plan to create least amount ofimpact to county budget and Most counties plan everything thru the General Fund which funding for To eliminate this issue, the Capital Improvement Fund (CIF) was created None ofthe funding the CIP ever goes back tot the General Fund Separate revenue stream and fund dedicated solely for capital formation Reduces the "peaks and valleys' ofrevenue needed - consistent sources Goal toj place the county in sound financial policy position Provided a debt affordability model - ran 34 models thus far Stokes County was one oft the first inl NC to create this fund which is highly perceived by Local Government Commission (LGC) and rating Lot of counties are now deciding what they want their fund balance to be such as 16%, 18%, 20%, etc. and then when their audit is completed and ift there is extra funding beyond their desired goal, that extra funding goes into the CIF This eliminates creating huge fund balances that most oft the public May want to look at doing something like this in Stokes County General Capital Improvements were not added - Current Need Today we begin the process to more comprehensively define the need  taxpayers  Cities are different from counties when it comes to planning debt gets eat up from the operating cost  Creation oft the Dedicated Capital Improvement Fund (CIF)  and debt service  agencies  doesn't like to see and adds to the CIP  17  February 29, 2024  Financial Planning/Capital Needs Workshop    There will some decisions that the Board willl have to make before ai final CIP is developed (possibly by this fall for the next year's budget = FY Need to also decide how the current projects such as the courthouse expansion and the new animal shelter are going to bej paid for  2025-26)  Commissioner Morris requested to add commentsydiscussion regarding the need to include  matching funds fori internet grants. DEC President Doug Carter responded:  ACIF includes all major projects, how they will be funded, dates of completion, etc. sO matching funds would be included int the CIF - anything related to capital The CIF would show how each project is being funding which would include matching Discussed how the CIF was created in 2008 with dedicated funding going into the CIF at that time versus what is now going into the CIF from the General Fund (not the 4-cent Originally there was $2.2 million going into that CIF, now it is approximately $900,000 - Sales tax collection designated for schools and education lottery fundings are separated Looks like sales tax designated for schools is paying largely for pay-go projects Need to look to see whether the school sales tax funding is getting us where we need to or could be used to secure bonds to get a good amount of money up A good CIF includes debt and pay as you go - Stokes County's CIF does not have pay as Want to complete the CIF with all revenues that need tol bei ini it, will then be able toj plan Timing in an affordability model has more impact than the interest rate in the CIF Discussed how transferring excessive funding in the General Fund (beyond the County's desired goal) can increase the funding in the CIF with leaving a healthy Fund Balance In Stokes County, we don't have the confidence to know how: much fund balance an  funds  property designated)  (short int that fund in what we could havel had) The 4-cent property tax was designated for schools from the CIF. - they should go into the CIF  you go  and determine how much funding is needed  Chairman Chandier commented;  appropriate amount is and how much is a surplus DEC: President Doug Carter responded: The completed CIF will help that issue DEC President Doug Carter continued:  Capital Investment Fund (in and out flow) Inl Flow to the CIF  General Fund Contribution School Sales' Tax Collections Education Lottery $s  18  February 29, 2024  Financial Planning/Capital Needs Workshop    Miscellaneous Revenue Out Flow oft the CIF  Debt Service (pay existing and: future debt) General Government M&R pay-go and CIP pay-go Future School Capital Fund School capital Pay-go Projects Community College Pay-go Projects Technology Capital, Maintenance & Repairs  New capacity Creation ofDebt Capacity Projected Revenues Projected Expenses Projects move slowly Actual debt cost lower projections Actual revenues higher than projections Rapid debt reduction Other factors Meet Fund Balance Goal for the CIF  DEC President Andrew Carter continued the presentation:  Briefly discussed examples of Prior Presentation of Alternatives on the plan shown on 07-28-08, 11-24-08, 01-12-09 - actually have had several, several other  alternatives that were shown to the Board Financial Plan Issuances to. Date refinancing transactions  DEC President Doug Carter continued the presentation:  Several privately placed transactions have occurred including several Transactions in 2009, 2010, 2011, 2013, ,2014, 2015, 2016, 2017, and Have done financing with USDA which gives good interest rate with long  2020  terms (did USDA funding for the jail) Transaction financed several functions/purposes  Public Schools Jail Land Acquisition Community College EMS Rate Modifications for Savings Others  Numerous other Financings have been Reviewed/Studied Debt Affordability Model has 73 Alternatives County has been Active in Revieing Debt Affordability  One thing I want to speak about = County does not issue GO Bonds, County issues Limited Obligation Bonds which do not require a vote  19  February 29,2024  Financial Planning/Capital Needs Workshop    Question comes into play whether bonds should be voted on New legislation as to what has tol be placed on the ballot Ifyoul have a GO Bond that fails on the ballot, LGC will not let you issue bonds for 2-3 years unless for something that is mandate by the court  Current CIF and. Affordability Model Condition Noti included in the CIF - Should Be:  All Capital Needs- - More than Schools Include all revenue sources - school dedicated sales taxes in separate fund - appears to be used for Pay-go Only Debt Service payments and Pay-go Expenditures  Current Sources to CIF  4cents of Ad Valorem - instituted in Fiscal Year 2012 for schools $910,000 from General Fund - Frozen amount ofPrior D/S Original amount reduced by appronimately51.300,00  No funding in Fiscal year 2020  Education Lottery Need or Be Used Only for Schools  Must decide Should CIF Current Capacity be Available to any Capital  DEC President Doug Carter added something to think about:  When the 4 cent was created, it was defined specifically for school projects The CIF has never operated around general improvements projects, it has been schools Youl have no capacity currently existing, there is no fund balance to do general What willl have to be decided at al later time, do you use the capacity that you currently have to do the courthouse renovation, then as you plan with the school system, find a way Since there is no fund balance inside the CIF: for general improvements Ifwe don'ti use some oft the capacity currently in the CIF, we are going to have to raise taxes a couple of pennies in the early years to pay the debt on the courthouse project - We willl be bringing to you before your budget in June, a discussion to determine how you will pay the debt service for the new animal shelter and the courthouse renovations (immediate projects) and whether the animai shelter can be push off even though it has Youl have no capacity for general government: improvements facilities, but you have Must decide ify you want to make aj policy to use the capacity in the: fund now to do the courthouse renoyations'animal shelter and then find the capacity once the school system Legally you don'thavei to put that funding back into the fund since it was aj policy  improvement projects  There is some capacity inside the CIF today  toj put that money back  that does not include the new animal shelter  become aj priority project  approximately $7-$7.5 million capacity ini the fund  determines it needs  decision by aj previous board - not a voted tax for schools You have capacity but it isi inside the 4-cent fund  20  February 29,2024  Financial Planning/Capital Needs Workshop    Commissioner Morris asked if that was being questioned to avoid raising taxes.  DEC President Doug Carter responded:  What Iwould say is that the County is going to have to find revenue to pay for these projects - the question is do you want to use the current capacity for at time period until all this planning is done and determined how much is needed and where is that funding DEC President Andrew Carter reiterated that the model has always been predicated as a school Commissioner Morris noted that whatever is done, there has to be transparency.  coming from  debt.  DEC: President Doug Carter responded:  Int three or five years, al lot oft the debt will be paid down All this can'tbe done by June 30thofthis year There are some decisions to be made Commissioner Morris commented:  Wel have got to get the CIF completed, find out what the school system's needs are Immediate question is how do you pay for the debt service on the courthouse renovations  Ihave been associated with county government since 2004 primarily as county manager Reduced the tax rate by 2 cents during a reevaluation that we got no credit for doing that My point- - at some time you have to raise taxes to do these things From aj philosophical standpoint - what I would like to do say is that taxes are being raised for the courthouse renovations because thej judge made me doi it  Irecommended tax increases which were all ignored Have went ten years with no tax increase  DEC: President Doug Carter responded:  Inm most all the counties wel have worked with, including Stokes - have raised taxes to People are willing to pay more taxes ifit gets them a school or a specific facility You need linkage, ifitg goes into the CIF, people can seel how the taxes are going to be  build schools  spent- 1 projects in the CIF Commissioner Cox commented:  Youj just can'traise taxes for no good reason, you are going tol have to build some schools Going back tol Nancy Reynolds, going tol be upfront, I was actually principal there before Nancy Reynolds was 85 years old when the new school was built in 2009 Department of] Instruction had stated that Nancy Reynolds would be shut down - had  Commissioner Mendenhall commented:  the new school was built (2002-2004) structural issues (safety and health issues)  21  February 29, 2024  Financial Planning/Capital Needs Workshop    Commissioner Morris added that there were no complaints regarding the 4-cent tax because it Commissioner Cox questioned DEC President Carter his thoughts/opinion regarding grants (like the one the Board did not approve recently for a new elementary school in] King) that we might  was put out there that it was going for schools people understood.  have another opportunity. DEC President Carter responded:  Ifyou think you can get some money, then you apply, but here is the problem that money  is primarily going to go tot the poorest towns Don'tknow why you would: not apply  Commissioner Morris responded: ist the main reason  Wei requested a comprehensive plan from the school system which we did not get - that Commissioner Cox noted that that the required match was going to be paid for by the school  system, but it was still not approved. Commissioner Cox continued:  Some people didn't like where the school was going to be built, but in my opinion, that is thel Board of] Education's decision, not ours - had been a school board member fifteen There is no question that we need some new schools whether iti isi in the northeast part of Ifyou can replace a school for a $2.1 million match, feel financially it makes sense to  years before becoming a county commissioner the county, King, or wherever  apply  Commissioner Morris added: we did not geti it  Thej problem is that we: requested a comprehensive consolidation plan for the schools, and They gave us aj piece of scrap for aj plan, that is the reason we turned it down  Chairman Chandler commented:  The Board of Education was willing to put up the $700,000 match for the first year (there would bet two additional $700,000 payments) with Chairman ofthe Board of Education saying that it would be the hope that the Board of Commissioners would take up the Plus, the question is if you have the fund balance that can provide the matching amount inav whim, why have you not been maintaining the schools or planning in advance for the Again, it all goes back to operating in crisis mode which this County has done for years  remaining two payments of $700,000 grant which they have not done  and years February 29, 2024  22  Financial Planning/Capital Needs Workshop    Ijust want to thank Commissioner Mendenhall again for suggesting the County engage Also want to thank Commissioner Mendenhall for questioning Dr. Rice about the loan that was still owed forl Lawsonville Elementary that was being recommended to be closed Ofcourse, Dr. Rice did not know, but later came back and stated that it does affect the loan - that should have been thought out before any decision was: made Then they quickly decided toi move another school tol Lawsonville and Lawsonville students are being sent to 2 different schools -1 that is what happens when something is  with DEC. Associates, this is very good information fort the Board  by thel Board ofEducation  not thought out - crisis mode Commissioner Cox added:  Agree with Chairman Chandler that this is all very good information, do remember the County engaging with DEC Associates but when this originally took place, I wasa Vice Chairman Wood confirmed with DEC: President Doug Carter that ift they had gotten the grant, but bids and other things needed at the site go over the amount awarded from the grant, the Vice Chairman Wood added that he knew a lot from surrounding counties regarding the building  member oft the Board of Education  County pays for the additional needed funding.  ofnew schools and their cost. DEC President Doug Carter continued:  Potential Current Financial Planning Needs Model - contract approved  Board of Commissioners Authorized Update to CID CIF and Debt Affordability Model Need to be Updated  CIF Funding Sources need to be Revisited and Determination of Adequacy of Revenues - Review has begun but not completed Debt Affordability Model Update and Review will indicate Affordability Analysis could be completed, and various scenarios Determination of Borrowed or Pay-go Methods  potential Future Debt Capacity  reviewed  Process to Reevaluate the CIF and. Affordability Planning and Analysis Reiterated the importance oft timing with when it come to al Debt Work with DEC to Assess CIF Funding and Current Affordability  Process and Timming to Reevaluate CIF Affordability  Affordability Model  What Capacity Does the CIF currently have - current capacity can fund approximately $7 million - no significant additional until Fund Balance and other Data ini the CIF not fully Updated Will expand revenues to the CIF Sales Taxes, Additional Pennies,  2030. - will show you the actual model etc. (will work through all that)  Determine Current Capital Needs - General Needs and Schools Financial Planning/Capital Needs Workshop  23  February 29, 2024    Most importantly, you have tol know what your Board ofE Education Have Cost and' Timing Been Fully Developed and Vetted Have Operating Cost Impacts Been Fully Determined Determining Priorities and Ranking the Order ofNeed Determining Timing Needs and How they Impact Affordability Drives the Affordability Model More than Interest Rates Key to Getting Greatest Capacity from the Model Have met on behalf of Board of Commissioners with school boards multiple times and stated that what you wanted can't be afforded: for three Once Needs Completed - Determine Debt Affordability and Timing Develop Funding and Affordability Alternatives Demonstrate How Timing and Cost Impact Affordability Are Current CIF Revenues Adequate New Capacity from Additional Revenues - Preliminary Thoughts Each Penny added in 2025 Budget Adds New Capacity Timing and Interest Rates Impact Capacity Include Both General and School Capital Needs? Determine Capacity Allocation from Current CIF  wants and needs  Timing ofCapital Needs is Key  or more, years  Final Decision on Breadth oft the CIF  Commissioner Morris commented:  Have tol keep in mind that this is not just a want/needs list, this nowi is a consolidation list Confirmed with DEC President Doug Carter that the needs for the CIF have toi include Alsol have tol keep ini mind that some oft the commissioners have promised to take al look at revenue neutral with the next reevaluation that is scheduled for 2025 Whether to. leave taxes as they are, go revenue neutral or lower taxes regarding the next reevaluation has to be figured in with all this planning  county needs  DEC President Doug Carter responded:  Most counties that Ihave been associated with, do not go completely revenue: neutral, a lot keep the same tax rate with some lowering the tax rate but not completely back to No one is never happy with: reevaluation - even if you lower the tax rate and the value  revenue neutral  goes up - most are: still paying more taxes  Consultant Sharpe added:  One thing that has to be dealt with is the current portion of property tax revenue that is My strong recommendation is to look at that -i if the schools have enough fund balance to pay the match for the grant -the only way they get a fund balance is that they are not  directly going to the schools spending your money  24  February 29, 2024  Financial Planning/Capital Needs Workshop    Need to look at the current fund balance of the school system capacity for county operations as well as school debt  Need tol look at the current amount being spent per pupil - what is happening with that Need tol look at how you are funding the operating differently that could give you  Outreach Associate Amy Cannon: requested Consultant Sharpe to explain again about how the  school system maintains a fund balance. Consultant Sharpe responded:  The only way a school system can maintain a fund balance is that they are not spending Vice Chairman Wood responded that then they come back and say that they are being punished  all oft the allocation that is being provided by the County  because they are being so frugal. Consultant Sharpe responded:  Then you have to look at how they are accumulating that fund balance  Are they able to leverage more state dollars which is great and ifthey can continue to dot that - they don'tneed same level off funding from the County Need to analyze their financial statements (look at the budget versus actuals) if you think the allocated dollars are not being spent to maintain the schools Need tol look at their audit -i it is public information - should be on their website Remember when we. had our joint meeting, the question about the amount oft their fund balance was never brought up until I directly asked Finance Director Lanette Moore  Commissioner Mendenhall commented:  They were not going to voluntarily provide that information  Consultant Sharpe responded:  Going to work with Finance. Director Lankford to determine how that fund balance has  occurred - actually already have a template inj place to start that Can calculate how that fund balance has occurred  Commissioner. Morris and Commissioner Cox both commented that part oft the reason for the large amount ini their fund balance can be contributed to American Rescue Plan Act (ARPA). Consultant Sharpe responded it still needs to be looked at before ARPA funding came into play. DECI President Carter noted that iti is illegal for the school system to refund allocations back to a county but remember that a school system's fund balance has to be local dollars or something  extraordinary such as. ARPA.  DEC President Doug Carter continued the presentation:  Calendar tol Reevaluate CIF Affordability The Calendar and' Timing will be Critical  2023. Audit Completed and CIF Update in Progress Determine Cost and Preferred Hoped For" Timing Financial Planning/Capital Needs Workshop  25  February 29, 2024    Meeting with Entires Needing Capital Investment and] Determining their Priorities - do believe that the twoj projects for the County would probably be the best things to work with before this year's budget and bring in the big needs such as schools later when a comprehensive list is provided by the school system Determining Operating Cost Impacts Meetings with County Management andl Board of Commissioners Finalize the Capital Improvement Plan - will get aj partial CIF before the budget to include how toj pay for the debt service for the Reviewing Alternates and Resulting Impacts on County Finances County Commission Input will be Crucial andl Important to make Final CIP and Debt Affordability Decisions Include Decisions in the Upcoming Budget Cycle Update CIF and Final Decisions on Scope - To be determined Make Final CIF and Project Decisions - tol be determined Number of Meetings with County Commissioners and Staff during  courthouse  Potential Calendar  CIP Complete - to be determined  the Calendar  Chairman Chandler commented:  Ist this feasible or recommendable before our budget work sessions start, could no more than two (2) members ofthel Board and the county manager meet with DEC. Associates to Consultant Sharpe noted that has been done in several counties to get things started especially when there is a complicated CIF at which time commissioners could get good solid information.  start some type of dialogue regarding the CIF  DEC Doug Carter responded: Chairman Chandler continued:  This has been done in several counties  Like Consultant Sharpe stated, ith has been done in other places, very familiar with this This gets a lot of questions answered reducing the length of future meetings Board members would still have the opportunity in a work session to express their  being done during my previous career in Fayetteville  opinions and ideas  Lunch  Chairman Chandler recessed the workshop for a lunch break. Chairman Chandler called the workshop back to order.  Bringing It All Together February 29,2024  26  Financial Planning/Capital Needs Workshop    Outreach Associate. Amy Cannon presented Bringing It All Together: The Plan for the Plan (CIP) and Wrap up ofFinancial Planning and Capital Needs Session power point presentation. (a  copy oft the presentation can be obtained from the Clerk to the Board)  Step 5: Creating the organizational structure to develop and manage a CIP What contributes to a successful CIP process - possible considerations: Master plans and facility condition assessments recreating preliminary timelines Subject matter experts Engaging the school system  An internal core team responsible for gathering andi reviewing request and  Wrap up ofl Financial Planning and Capital Needs Session  Next Steps in Developing the CIP  Timeframe: Target for having al Draft CIP  Project Owner/leader as mentioned by Consultant Sharpe (county manager, finance director, public work/facilities manager, ITI Director. -1 those needed to Assistance needed: Subject Matter, Experts, Consultants -1 think it needs to be included on your survey - staffing capacity is a concern - is iti time tol look for Stakeholders to engage - department heads need to bei included in part oft this plan especially in the older facilities that have safety and health issues Information needed to make decisions on immediate project financing needs DEC Associate President Carter brought up some very good points regarding the financial aspect of the CIF and some immediate decisions that need to be made Tor make sure before you complete thel Local Government Commission application regarding the courthouse project you need to know how the project is Would like tol hear the Board's thoughts on moving forward from here  accomplish the CIP)  some outside: resources to build this CIP  going to be paid: for  Chairman Chandler responded:  Tol be honest, this feels like we are going into a new galaxy right now, for me, Ihave always been on the other side - not the side that has to find andj provide the funding After we engage with them and others, wel have got to decide what are our priorities We are. just about to start the FY 2024-25 budget which is notl looking pretty with the increase in expenses plus the fact that we are having al hard time retaining staff especially Fiscal Year 2024-25 budget is not going to be easy -i ify you want to cut taxes, the quickest way to reduce a budget is cutting personnel and youl have to be able to provide  Ithink we: need to start with a: steering committee  inj public safety services  Outreach Associate Cannon responded:  Thet thing to remember is that cutting personnel often causes aj reduction in services  27  February 29, 2024  Financial Planning/Capital Needs Workshop    Inc county government, a lot of the services,, just about all oft them, are: mandated -t that is When starting that process, you find there are very, very few services that are not You are already lean on the staffing side in a lot of areas especially the general  avery difficult process mandated government area Commissioner Morris responded: mandated services  Asc county manager, that was looked at, and there are only a: few departments that arei not One thing that I would like to doi is possibly have aj policy that states that any unfunded mandate that we get like this courthouse renovation, wej just passed the cost on to the taxpayers - explaining why we did this - ifthey think there is al better idea, then they can Courthouse project is ai mandate, and the animal shelter is not aj mandate but very much The animal shelter could bel looked at as a mandate due to the safety and health oft the animal population in the county, especially ifthere is limited space. Commissioner Morris added that the animal shelter has been put off for several, several years and needs to be replaced - facility is outdated, capacity is limited, and some oft the mandated  let us - bottom line, we have got to pay for it someway  needed  Outreach Associate Cannon continued:  requirements such as the flooring are very expensive. Outreach Associate Cannon continued: overwhelmed today  Going back to Chairman Chander'scomments, can understand how the Board can be Do agree that the development ofa a CIP team is a very important piece of the CIP Believe, ifit the desire oft the Board, we can assist in facilitating that team Bring that group together and look for any resources available Next step would be to engaging the department heads, refresh the faciality assessment Try then to try to find the resources to develop the CIP Chairman Chandler, Iamj just one vote, but I1 like that plan.  Doi think breaking things down into small steps  Chairman Chandler conferred with the other Board: members that they all agreed with Outreach Chairman Chandler suggested to Outreach Associate Cannon that they get with Interim County  Associate Cannon suggestions.  Manager/Clerk Brown to get the process started. Outreach Associate Cannon responded: Will bel happy to work with the County  28  February 29, 2024  Financial Planning/Capital Needs Workshop    Would like to say ai new CIP is a very comprehensive document and is going to take time Will keep in contact with DEC Associates to make sure we are going down the same path Iknow the elephant in the room is the schools, but I think it needs to be mentioned and Need tol hear what the Board's thoughts are with reengaging with the school system Plans are underway trying to schedule a time for myself, Vice Chairman Wood, and Interim County Manager Brown to meet with Superintendent Rice, Board of Education  andj patience in order to put it together and make sure it is right  Consultant Sharpe added:  hear thoughts from the Board  Chairman Chandler responded:  Chair and Chairman Consultant Sharpe responded:  Sharing with them what the Board is doing = engaging in the financial planning and the development oft the CIP and the importance ofh having aj plan from the: school system Not wanting to talk about politics in any way, but do believe the upcoming primary AsIdid not choose to run back this year, there are two seats open on the Board of Commissioners with Commissioner Cox seeking reelection (November being the last There are three seats open on the Board of Education (five-member board) could be three new Board of] Education members which could change the perspective Commissioner Cox noted that it will all be decided in the primary next week but not being sworn  Commissioner Mendenhall commented:  election is going to be very important to the Board of] Education  month that Iwill be serving as a commissioner)  in until the: first ofl December. Outreach Associate Cannon responded:  Believe, the County, by starting this process, can be a leader for the schools You are going to start the same process that you need from thel Board of Education At some point when you start this process and sharing this information with them, they may get al better understanding what you need to develop that long term plan and vision Ihave heard Doug say earlier today that he has appeared before several Board of At some point, there might be some value to having your financial advisor share some of the things that are needed for this Board to make an informed, financial decision for this  for Stokes County from a capital plan standpoint Educations and talked about a CIP  county  DEC President Doug Carter responded:  Al lot of times, we have met with the superintendent and the financial staff first Can also meet individually with board members (no more than two)  29  February 29, 2024  Financial Planning/Capital Needs Workshop    Have before showed debt affordability models if SO desired by thel Board One oft the first things is about rebuilding that relationship Itis iss sharing information and having discussions - transparency  Outreach Associate Cannon responded:  Ini my experience. as a county manager, Boards of] Education believe you have more Board ofEducation does not understand all the services that counties have to provide, they do not know the strain on the tax dollar, and they do not have to raise property taxes This Board understanding what the Board of] Education responsibilities are and the Board ofEducation understanding what the Board of County Commissioners' responsibilities  money than what you say you have  are- - that goes al long way inl building a trusting relationship  Commissioner Mendenhall commented:  Believe they do understand, Istood up an hour and five minutes and did comments to address what all wel have to do and are responsible for as county commissioners They were. listening and they knew since Ihave been a superintendent before becoming a Itold them I knew about education, but needed them to know all about the departments that the county commissioners are responsible for- listed most ofthem Chairman Chandler confirmed with Commissioner Mendenhall that each school principal submits a school budget for their school with the top three (3) priority capital projects. Chairman Chandler confirmed with Commissioner Mendenhall that he could request things from the school system about utility costs, county paid teaching positions, etc.  commissioner, Iknew both sides  Commissioner Cox commented:  Just want to understand that the next step would bei for Amber to set up a meeting between the school superintendent, finance director, and county finance director and Possibly have financial advisor meet with school system staff later down the road to Believe if financial staff meets with school staff and the Boards are initially left out ofit,  interim county manager discuss what is needed for the CIP itwill work better  DEC President Doug Carter responded:  A CIP is aj project-based document by year they think they can get that project up and going  We have to be able to see the cash flow to determine how quickly this can occur We would also need aj priority list from the school system (example 1-10) to see when Most projects in the CIP do not get done in the first year within that CIP, they are ongoing and some with future dates (can meet with them to develop their needs) Just finished a project like this in Person County, met with school system staff, engineers,  etc.  30  February 29, 2024  Financial Planning/Capital Needs Workshop    Would be happy to meet with Board of Education regarding school needs  Just remember that timing is everything  Outreach Associate Cannon noted that ended the CIP presentation, DEC. Associates would be leaving the workshop, and the Board would return for the County Manager Recruitment Process  after a short break.  Chairman Chandler recessed the workshop for a short break. Chairman Chandler called the meeting back to order, County Manager Recruitment Process  NCACC Outreach Associate Amy Cannon presented the County Manager Recruitment Process power point presentation. (a copy of the presentation can be obtained from the Clerk to the Outreach. Associate Cannon noted that she and Consultant Johanna Sharpe had recently met with Chairman Chandler and Vice Chairman Wood about the Board's desire to: move forward with a  Board)  county manager recruitment process.  Outreach. Associate Cannon began the presentation:  Have just recently finished this process fort two (2) other counties  Have put together this power point presentation for the Board's review of what we can do Would like feedback from the Board today as to how much the Board would like for us to Want to: make sure what wel havej prepared today are suggestions, but that this is the Board's] process and will bel happy to helpi in any way Manager recruitment and selection is an important decision Success is dependent upon a well-defined and Board approved process Attract and identify well qualified and experienced candidates Promote transparency and fairness ini the hiring process Allow for comprehensive assessment ofi individual's' "fit" forj position Mitigate risk ofhiring wrong candidate Enhance public trust and confidence in the selection  do  A's 'good" process will:  Jobl Description: Experience and Preferences (pulled from your job description)  Financial management year Long-range planning Effective decision making  Budget development - very important process that carries the County from year to  Outreach Associate Cannon opened the floor for comments regarding desired experience and  preferences from the Board Board: members commented: February 29, 2024  31  Financial Planning/Capital Needs Workshop    Vice Chairman Wood- must have common sense Commissioner Mendenhall - being able to multitask Outreach Associate Cannon continued the presentation:  Commissioner Morris - manager also serves as the personnel officer, leadership by example  Job! Description:  Excellent communicator with exceptional interpersonal skills Dedicated to public service and ethical values Collaborative management style Motivates and mentors staff  Experience Preferences: (job description did not speak exactly to what kind of experience  are you looking for)  Type ofl Experience - Broad/Specialized Education and Background  Years ofLocal Government Experience- - Minimum of5 years or 7-10 years Level ofLeadership Experience -I manager ins smaller unit or assistant in larger  unit  Board: members commented:  Chairman Chandler 1 really like specialized; however, being a small rural county, Iwould rather Commissioner Morris - would like someone with a strong financial background (very easy to get int trouble in that area) along with a strong background inj personnel (personnel issues can be  have someone that has broad experience - someone who knows where to go  complicated and also very easy to geti int trouble in that area)  Outreach Associate Cannon continued:  Need tot talk which is valued more education or experience or are they about the same and the number ofyears desired for experience (job description did not mention the number Need to have these questions answered in order to start the job vacancy announcement o Will provide the Board with aj proposed job vacancy announcement for review  ofyears of experience desired) - this is very important  and can be changed if needed  Board member commented:  Vice Chairman Wood -1 thinking 7-10 years but what does those numbers do to the pool that is  out there  Outreach Associate Cannon responded: required (5-7) years of experience net which we can talk more about later  The last two (2) counties that wel have done - one required ten (10): years and the other We received 20 applications each = one thing also depends on far do you want to cast the  Board members commented:  32  February 29, 2024  Financial Planning/Capital Needs Workshop    Commissioner Morris- - one thing that has to be determined isi ifthel Board is going to require certain components such as experience/education ori is it going to be desired  Outreach Associate Cannon responded:  Yourj job description requires a 4-year degree in business administration or ai related field; does not mention anything about a Masters in Public Administration or MBA We always put in "a combination of experience and education". in case you have someone whol has al low number of years ofe experiences but high degrees You do not want to unnecessarily take someone out of consideration - this allows you to consider knowledge, skills, abilities, and experience Another item to be considered- - are you willing to. look at a deputy manager who has possibly been in a larger city/county but never been ai manager  Outreach Associate Cannon continued:  Key Components of Recruitment Process:  Jobl Profile  The brochure will talk about Stokes County, its amenities, number of Will also talk about what thel Board is looking fori in a county manager will use attributes in thej job description plus those added today,  employees, etc.  experience, education, etc. Will inform a candidate how to apply the opportunity Application Review Process Recruitment Plan and' Timeline Interview and Selection Process  Good opportunity to, get someone really excited about Stokes County and  Jobl Description - Salary J job description has a salary of about $105,000.00 When we bring the. Job Profile back toi the Board for review - we will bring some salary comparisons back for your review - similar counties, counties with similar  demographics, etc.  Salary isi important but not everything Have worked with a smaller county like Stokes  Suggest using a salary range $105,000.00 is a little low ini my opinion  Job Profile  Ideal candidate characteristics Community Minimum qualifications  Emphasize survey results regarding experience. and personal  Include location, amenities, history, culture Only interested in NC government experience Equivalent combination of education, training, and experience  Residency requirement - Compensation and Benefits:  33  February 29, 2024  Financial Planning/Capital Needs Workshop    Consider adding al hiring range based upon a salary comparison ofs similar  counties  Vacancy Announcement: Distribution - need to determine by the Board (Virigina is very  close)  NCACC  North Carolina League ofMunicipalities (NCLM) North City & County Manager's. Association (NCCCMA) National Association of Counties (NACO) Virginia Association ofCounties (VACO)  Consider International City and County Manager's. Association (ICMA) First place professionals go to when seeking positions May be able to eliminate separate postings tol NACO, VACo, and SCAC Ifprimary interest is only NC experience, need tol know Recommend advertising on ICMA which is International City and County  Manager Association  This cast the net very wide  Board: member commented:  Commissioner Morris - need to decide ift the candidate must live in Stokes County Chairman Chandler-yes, think the: manager needs live in Stokes County - be vested in Stokes Commissioner Morris - confirmed with Outreach Associate Cannon that ifc county residence is going to be required - there should be ai timeframe for the candidate to move to Stokes County. - Vice Chairman Wood - confirmed with Outreach Associate Cannon that by requiring the candidate tol live in Stokes County most candidates expect for the County to help with moving expenses - what II have seen as a best practice is the candidate gets three (3) bids for the moving and the County pays the amount oft the lowest bidder but allows the candidate to choose the Commissioner) Morris = added that he would not require that experience can only bei inl North Vice Chairman Wood - to be honest and frank, ifyou bring in someone from other states not closely surrounding North Carolina to Stokes County, will start an exit of people - would not  Vice Chairman Wood- -yes to living in the County  County  negotiated period oftime (be included ini the brochure ifr required)  moving company and pays the differential  Carolina work  Commissioner Cox - agree with that Outreach Associate Cannon responded:  Remember when you cast the net far, remember you are evaluating someone's education Aj piece of that evaluation isi making sure that candidate will fiti in Stokes County Recommendation is to cast the net through ICMA as earlier mentioned You may have someone who is in New York but was raised, educated in Guilford County maybe moved forj personal reasons but wants to move back tol NC  and experience  Board members commented: February 29, 2024  34  Financial Planning/Capital Needs Workshop    Commissioner Mendenhall = serve on the Forsyth Tech Board ofTrustees - Dr. Green (former president) retired in 2019 - served on the recruitment committee (14 members) for a new president - cast the net nationwide - received 63 applications- - had two rounds narrowing the  candidates down to four with three being from North Carolina Outreach Associate Cannoni responded it usually works itself out.  Outreach Associate Cannon continued: Recruitment And Selection Schedule  Finalize Recruitment Brochure - March 25th Posting ofVacancy Announcement - April 1st Application Closing Date - April 30th  Application Review/Pre-sereening Week ofMay 13th-h have talked with Human Resources about the applications coming to us unless the Board desires something This process seems to get more candidates applicants certainly do not want their Boards know they are looking for other employment especially Itis difficult for a Human Resources Director to bej process applications Going to somewhere other than HR seems to make candidates feel there We will start reviewing the applications as they come in Will prepare a spreadsheet that contains pertinent information for the Will make. a recommendation as to whether the candidate should movec on Remember this is your process sO you have input Once the Board selects the candidates to be screened, we will havea virtual screening session with each candidate After the screening phase, we will give the Board another recommendation on the applicants that we: feel the Board should consider  different  ifiti is a county close by  for someone that they will be working for will be more confidentiality  Board  totl the screening phase  interviewing  There was consensus oft the Board that the applications should be sent tol NCACC -  Amy/Johanna.  Outreach Associate Cannon continued:  Board Interview Process = Week of May 28th  Board Selection, Offer, Reference, Background check, Contract - Week of June Our tentative schedule does occur during your budget process - those dates can be  10th  Plan is to have someone on board by late July - early August changed ifneeded -1 this is the Board's discretion  Consultant Johnna Sharpe commented:  35  February 29, 2024  Financial Planning/Capital Needs Workshop    We will forward the complete application packet from each candidate that has been  screened in order for the Board to review  Chairman Chandler confirmed with Outreach Associate Cannon that the County'sl HR Department would do the background check and drug screening once an offer has been made to the candidate; the offer will be subject to the background check and drug screening. Chairman Chandler confirmed with Outreach Associate Cannon that a 2ndi interview could done  ifdeemed necessary. Chairman Chandler commented:  Understand the need for confidentiality  Ini my past employment, have seen the County hold like aj public forum (meet and greet) for the top candidates (with their permission) so the citizens can meet and talk to them But do not want something like this to limit the pool of candidates as previously  mentioned  Outreach Associate Cannon responded:  Ini my experience, most candidates, even ift they are the top candidates, do not like for their name to be out there indicating that they are looking for other employment = not  wanting their respective employer to know they are looking  Consultant Sharpe commented:  Have seen it done both ways, however, ultimately how would you weigh that input and You could end up with a certain group of people wanting one candidate and the Board  ultimately the bottom line is your decision wanting a different candidate Outreach Associate Amy commented: seei ini the next county manager Consultant Sharpe commented: manager really does Commissioner Mendenhall commented:  One thing that you could do on the: front end is ask the citizens what they would like to  One thing to remember is that al lot of people actually do not know what a county  Agreed that candidates, especially those who are county managers, do not want their Board to know that they arel looking for other employment = can get that manager into  trouble with their Board  Outreach Associate Cannon continued with the power point information:  Application Criteria and Considerations  Maintain applicant confidentiality throughout process - only successful candidate  will be revealed  36  February 29, 2024  Financial Planning/Capital Needs Workshop    Require cover letter and resume in addition to application Establish process for application review Consider aj pre-screening process  Provides initial assessment beyond written documents Early identification oft red flags or potential issues Assessment of background and alignment with Board's goals Allows Board to spend more time on highly qualified candidates Consider additional assessments' written, oral, or situational exercises based upon Consider paying "reasonable travel expenses" to those being interviewed- Goal is to narrow the field to 31 to 5 applicants to interview with Board (1-2 for  Interview and Selection Process applications  especially those traveling and need to stay overnight second interview ifnecessary) Develop candidate evaluation criteria Candidate Evaluation Criteria Education and qualifications  Education background, Master of Public Administration, ICMA  Credentialed Manager certification  Chairman Chandler noted the need to be able to verify educational degrees - have known of  situations where a candidate would put down false information.  Outreach Associate Cannon continued:   Experience  Local government experience, preferably county NC local government experience  Demonstrated success in managing complex budgets, personnel, and  projects  Leadership and management skills  Ability to inspire and motivate staff Conflict resolution and negotiation skills A lot ofthis can come out during the screening process Wes also check the internet Communication Skills - very important Strong written and verbal communication skills Ability to articulate complex issues to different audiences Need ai manager than can explain intricate financial data Deep understanding of local government structure, policies, and Knowledge of challenges and opportunities facing Stokes County Commitment to ethical conduct and legal compliance Experienced in ensuring transparency and accountability in operations Problem-solving and decision making especially in critical times  Policy and governance understanding  procedures Ethical and Legal Compliance  37  February 29, 2024  Financial Planning/Capital Needs Workshop    Effective problem-solving in challenging situations Ability to make data-informed decisions Community engagement and relationship building Financial management and fiscal responsibility  Success in building relationships with elected officials, stakeholders Fosters collaboration among departments, community organizations Skilled in developing, managing budgets, financial planning Experience in maximizing efficiency and effective resource allocation  Outreach Associate Cannon concluded:  Will open the floor for any questions or discussion  Commissioner Morris confirmed with Outreach Associate Cannon that they have an ICMA contract template that the Board and County Attorney can review and make changes. Vice Chairman Wood questioned what kind of"Golden Parachute" clause (severance pay) is  included in the contract template. Outreach Associate Cannon responded:  In North Carolina, most counties (the average) include a six-month salary severance pay  in their contracts ifterminated without clause  There was full consensus of the Board to allow NCACC to move forward with the county Chairman Chandler confirmed with Outreach Associate Cannon that they could work with Commissioner Cox's request regarding the tentative schedule presented today.  manager recruitment process as outlined and discussed today.  Outreach Associate Cannon responded:  Will get working on the brochure and be back with the Board hopefully inl March Looking forward to continuing working with Stokes County officials and staff Would appreciate any feedback that the Board has - we are here to serve  Has been aj pleasure to be here today  Chairman Chandler expressed the Board's appreciation for today'sp presentations and discussion.  ADJOURNMENT  With no further business to come before the Board, Chairman Chandler entertained ai motion to Vice Chairman Wood moved to adjourn thel Financial Planning and Capital Needs Workshop.  adjourn the Financial Planning and Capital Needs Workshop.  Commissioner Mendenhall seconded and the motion passed unanimously.  38  February 29, 2024  Financial Planning/Capital Needs Workshop    Dalbouno /  R-ERCRRL  Amber Brown Clerk to the Board  Brad Chandler Chairman  39  February 29, 2024  Financial Planning/Capital Needs Workshop