1  CARTERET COUNTY BOARD OF COMMISSIONERS BOARD SEMINAR CIVIC CENTER, MOREHEAD CITY MARCH 4, 2024 9:00 A.M.  Commissioners Present: Chairman Jimmy Farrington, Vice-Chairman Mark Mansfield, David Quinn, Chris Chadwick, Bob Cavanaugh, and Chuck Shinn Staff Present: Tommy Burns, County Manager; Dee Meshaw, Deputy County Manager/Finance Director; Gene Foxworth, Assistant County Manager/Planning  Director; Ray Hall, IT Director; and Lori Turner, County Clerk Chairman Farrington called the meeting to order at 9AM. Vice-Chairman Mansfield offered the invocation.  FINANCIAL PRESENTATION  Dee Meshaw, the Deputy County Manager/Finance Director opened the seminar with an overview of the financial statements for Fiscal Year 2024. She stated the County is ina a strong economic position because revenue exceeded expectations and expenditures were less than budgeted. Also, the Federal Reserve increased interest rates, SO we had strong investment earnings. Ms. Meshaw reviewed each slide below.  Financial Update  Financial Update Presented to Carteret County Commissioners March4,2024  Fiscal Year Ending June 30, 2024 Estimated  Fiscal Year  June 30, 2025 Budget  Ending    2  General Fund FY24  General Fund is projected to end the fiscal year in Some major revenue sources will exceed the budget as well as expenditures will be less than  a strong financial position.  the budget.  General Fund FY24 Revenue Budget to Estimated Comparison  Amended Budget FY24 02/29/24  Estimated Revenue 06/30/24  Variance with Budget  Ad Valorem Taxes Sales & Other Taxes Permits & Fees Intergovernmenta Sales & Services Other Revenue Appropriated Fund Balance Total  $58.74 Million $59.14 Million 23.36 Million 23.36 Million 4.80 Million 18.94 Million 5.49 Million 9.35 Million 7.06 Million  4.57 Million 17.38 Million 5.59 Million 12.43 Million 0.00 Million  $127.74Milion $122.47Million $(5.27)Million  General Fund FY24 Expenditures Budget to Estimated Comparison  Amended Budget FY24 02/28/24  Estimated Expenditures 06/30/24  Variance with Budget  General Government Public Safety Iransportation Environmental Protection Economic & Physical Development Human Services  $12.68 Million $12.05 Million 22.03 Million 20.08 Million  2.44 Million 5.03 Million 4.32 Million  2.73 Million 5.00 Million 3.87 Million  23.95 Million 22.06 Million    3  General Fund FY24 Expenditures Budget to Estimated Comparison  Estimated Expenditures 06/30/24 $27.63 Million 4.67 Million 4.59 Million 6.44 Million 7.39 Million  Amended Budget FY24 02/28/24 $27.63 Million 4.67 Million 5.06 Million 6.45 Million 13.48 Million $127.64Million  Variance with Budget  Education: Public Schools Education: Community College Cultural & Recreation Debt Service Non Departmental (Transfer toother funds & non department expenses) Total  $116.51.Million $11.13Million  General Fund Summary FY24  Amended Budget  Estimated  Total Revenue and Other Total Expenditures and Other Revenues and Other Sources Over Expenditures and Other  Sources Uses Uses  $127.74 Million $122.47 Million 127.74 Million 116.51 Million  $55.96 Million $5.96 Million  Change in Fund Balance FY24 Increase In Total Fund Balance Estimated Increase in Total Fund Balance Analysis: Nourishment Restricted) Increase  Restricted Fund Balance: Net Restricted reserves increase (Add Beach Assigned Fund Balance (Assume no change from FY24 Adopted, $4.30M, to FY25 Adopted Budget appropriated fund balance) Unassigned Fund Balance: Increase Increase in Total Fund Balance 06/30/24. Estimated Unassigned Fund Balance Analysis: Unassigned Fund Balance 06/30/23, Audited Unassigned Fund Balance Increase FY24, Estimated Ending Unassigned Fund Balance 06/30/24, Estimated Unassigned Fund Balance as Percentage of GF Expenditures  $5.20 Million 0.00 Million 76Million $5.96 Million $43.12 Million .76 Million $43.88 Million 40.21%  General Fund Revenue FY25 Budget Considerations Revenue General Fund Assessed Value (to be provided) Sales Tax Revenue Permits, Fees, Sales and Services Investment Earnings  General Fund Expenditures FY25 Budget Considerations Public Schools: Operating, Capital, and Debt  Increase 2.00% 0.00%  Service County: Staffing Operations  Capital and Major renovations    4  PBMARES AUDIT REPORT PRESENTATION  Robert Bittner with PBMares provided the Audit Report. He thanked the Board and County Financial Team for their assistance with the audit. We are charged with rendering our opinion, and the opinion of PBMares was that the County received an overall clean opinion again this year. This is the highest level of assurance we can provide. The County is in full compliance with laws, grants, and other regulations. Also, there were no material noncompliance of Carteret County's financial statements. The Medicaid Determination Function had a hit. All other counties in North Carolina have struggled with hitting this moving target as well. This is basically a timing issue. See Item 17 in the chart below. The County will have to provide an FPIC Response Letter  County has met most LGC Performance indicators.  on this issue. The full audit report is attached for public review.  PBMares. CPAS and Consultants  February 23, 2024 Board of Commissioners Carteret County. North Carolina Beaufort, North Carolina Attention: Board Members  We arey pleased toy present this report related tos our audit oft the basic financial: statements of Carteret North Carolina (the County) as of and for the year ended June 30, 2023. This report summarizes County, certain the matters County's required financial by professional standards to be communicated to you in your oversight responsibility for This report is intended: solely for the information and use ofthe Board of Commissioners and and is not intended to be, and should not be, used by anyone. other than these specificd parties. management, It will be our continue pleasure to respond to any questions you have about this report. We appreciate the opportunity  reporting process.  to be of service to the County. PBMaress LLP PBMares, LLP TABLE OECONTENTS Required Communications Significant Accounting Estimates  to  1-3 4-5  Exhibits Firm  Exhibit A-Significant Written Communications Between Management and Our  Representation Letter Management Letter Exhibit B-Performance Indicators    5  REQUIREDCOMMUNICATIONS  Generally accepted auditing standards (AU-C 260, The Auditor's Communication With Those Charged With Governance) require the auditor to promote effective two-way communication, between the auditor and those. charged with governance.. Consistent with this requirement. the following summarizes our responsibilities regarding the financial statement audit as well as observations arising from our audit that are significant and relevant to: your responsibility to oversee the financial reporting process. Our Responsibilities, With Regard to the Financial Statement Audit Our responsibilities under auditing standards gencrally, accepted in the United States of Americal have been described to you in our arrangement letter dated February 28, 2023. Our audit of the basic financial statements does not relieve management or those charged with governance of their responsibilities, which Overview of the Planned Scope and Timing of the Financial Statement Audit Wel have issued a separate communication dated August 17, 2023, as an attachment to the above referenced arrangement letter, regarding the planned scope and timing of our audit and identified significant risks. Under generally accepted accounting principles, in certain circumstances. management may alternative accounting practices. In our view, in such circumstances, management has selected the Management has the ultimate responsibility for the appropriateness of the accounting policies used by the County. The followingi is: a description. of's significant accounting policies ort their application that were either GASB Statement No.96, Subscription- Based Information Technology. Arrangements, was implemented. The objective of this statement is to better meet the information needs of financial statement by improving the accounting and financial reporting for leases. We did not identify any significant accounting policies in controversial or emerging areas for which there Summary information about the process used by management in formulating particularly sensitive accounting estimates and about our conclusions regarding the reasonableness of those estimates is in the There were no audit adjustments made to the original trial balance presented to us to begin our audit. We: are not aware of any uncorrected misstatements other than misstatements that are clearly trivial. Other Information in Documents Containing Audited Financial Statements Our responsibility for other information in documents containing the County's audited basic financial statements. is to read the information and consider whether its content or manner of its presentation. is materially inconsistent with the financial information covered by our auditor's report or whether it contains a material misstatement of fact. We read the County's financial. statements and schedules listed in the financial. section of the table of contents as "Other Supplemental Financial Data". We did not identify We encountered no disagreements with management over the application of significant accounting principles, the basis for management's, judgments on any significant matters, the scope of the audit or  are: also described in that letter.  Accounting Policies and Practices Preferability of Accounting Policies and Practices preferable accounting practice. Adoption of, or Change in, Accounting Policies initially selected or changed during the year: Significant Accounting Policies isal lack of authoritative guidance or consensus. Significant Unusual Transactions We did not identify any significant unusual transactions. Management's Judgments and Accounting Estimates attached Summary of Significant Accounting Estimates. Audit Adjustments and Uncorrected Misstatements  select among  material inconsistencies with the audited basic financial statements. Observations. About the Audit Process Disagreement With Management significant disclosures to be included in the basic financial Consultations With Other. Accountants We are not aware of any matters. Significant Issues Discussed With Management management. Significant Dimculties Encountered in Performing the Audit Difficult or Contentious Matters' That Required Consultation  with other:  about  management. had  accountants  accounting or auditing  No significant issues arising from the audit were discussed or the subject of correspondence with We did not encounter any significant difficulties in dealing with management during the audit. We did not encounter any significant and difficult or contentious matters that required consultation outside We have separately communicated control deficiencies in internal control identified and this Significant Written Communications Between Management and Our Firm Copies of significant written communications between our firm and the management, of the County. including the representation letter provided to us by management, are attached as Exchibit. A.  the engagement team. Internal Control Matters communication is attached as Exhibit A.    6  Performance Indicators  The North Carolina Local Government Commission (LGC) requires certain key performance indicators be communicated to those charged with governance and these indicators are attached as Exhibit B. In the event a performance indicator does not meet the LGC's minimum metrics, the Board will be required to provide a formal action plan in writing to the LGC within 60 days oft the receipt ofthis document. For the year ended June 30, 2023, the County, had two performance indicators that require communication The American Institute of Certified Public Accountants (AICPA) regularly emphasizes that auditor independence isa aj joint responsibility and is managed most ettectively when management, audit committees (or their equivalents), and audit firms work together in considering compliance with AICPA independence rules. For PBMares, LLP to fulfill its professional responsibility to maintain and monitor independence, AICPA rules require independence both of mind and in appearance when providing audit and other attestation services. PBMares, LLPi is to ensure that the AICPA's General Requirements for performing non-attest services are adhered to and included in all letters of engagement. Maintain a system of quality management over compliance with independence rules and firm Timely inform PBMares, LLP, before the effective date oft transactions or other business changes, of Change in corporate structure impacting affiliates such as add-on acquisitions or exits. Provide necessary affiliate information such as new or updated investment structure charts, as well as financial information required to perform materiality calculations needed for making affiliate Understand and conclude on the permissibility, prior tot the Carteret County and its affiliates, officers, dircctors, or persons in a decision-making capacity, engaging in business relationships with Not entering into relationships resulting in close family members of PBMares, LLP covered persons, temporarily or permanently acting as an officer, director, or person in an accounting or  tot the LGC by the County Board ofCommissioners. Shared Responsibilities: AICPA Independence  management, Carteret County, and PBMares, LLP each play an important role.  Our Responsibilities  policies. The County's Responsibilities the following: determinations. PBMares, LLP.  New affiliates, directors, or officers.  financial reporting oversight role at Carteret County.  Shared Responsibilities for Independence  Auditor independence is a joint responsibility and is managed most effectively when management, audit committees, and audit firms work together in considering compliance with applicable independence rules. For PBMares, LLP to fulfinl its professional responsibility, to maintain and monitor independence, management, the audit committee, and PBMares, LLP each play an important role. We are required to maintain both independence of mind and in appearance when providing audit and other attestation services. Iti is our responsibility to ensure that the general requirements for performing non-attest services are adhered to: andi included in all letters of engagement. We are required to maintain as system of quality management over compliance with independence Timely inform PBMares, LLP, before the effective date of transactions or other business changes, of Change in county structure impacting affiliates such as add-on acquisitions or exits. Provide necessary affiliate information such as new or updated investment structure charts, as well as financial information required to perform materiality calculations needed for making affiliate Understand and conclude on the permissibility, prior to the County and its affiliates, officers, directors, or persons in a decision-making capacity, engaging in business relationships with Not entering into relationships resulting in close family members of PBMares, LLP covered persons, temporarily or permanently acting as an officer, director, or person in an accounting or  Our Responsibilities  rules and firm policies. The County's Responsibilities the following: determinations. PBMares, LLP.  New affiliates, directors, or officers.  financial reporting oversight role att the County.    7  SIGNIFICANT  ESTIMATES  Accounting estimates are an integral part of the preparation. of financial statements. and are based upon management s current judgment. The process used by management. encompasses their You knowledge wish and to experience about past and current events, and certain assumptions about future events. estimates. may monitor throughout the year the process used to determjne and record these accounting 2023 basic The following summarizes the significant. accounting estimates reflected in the County's June 30.  financial statements. Accounting policy process the estimate Fair Value of Investments Accounting policy process the estimate Accounting policy process the estimate Accounting policy process the estimate Unbilled Usage Receivable Accounting policy process the estimate ofl Deeds Pension Liability (Asset) Accounting policy process the estimate Debt Premiums Accounting policy process the estimate Leases Accounting & SBITA's policy process the estimate  Estimate Useful Lives of Capital Assets  Capital assets are recorded net of accumulated. depreciation. which is computed based on the estimated useful life of the asset.. Depreciation is calculated using the straight-line method over the estimated useful industry lives and management's: estimates ofthe actual expected useful accordance with accounting principles gencrally accepted in Investments are carried at their fair value which is the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement and other relevant information generated by market involving identical or comparable assets or a group. of assets.  lives of the assets. life for certain classes of assets. States of America (GAAP)-  Management's estimation The estimates for useful lives are based on a combination of standard Basis for our conclusion Based on the audit procedures performed, we believe that management lives on the remsonableness of has utilized a reasonable process to estimate the useful the United in  date. area A collectible amounts. that were written off inj prior years. GAAP. actuary. GAAP.  Management's estimation All investments are measured using the market approach: using transactions prices Basis for our conclusion Estimation process is. consistent with accounting policy and in on the reasomableness of accordance with GAAPI based on our audit procedures performed in this Allowances for Doubtful Receivables valuation allowance is established to report receivables at estimated Management's estimation The allowance is estimated by analyzing the percentage of receivables Basis for our conclusion Based on the audit procedures performed, wel believe that management on the reasomableness of has utilized a reasonable process for its estimate in accordance with Management's estimation The liability is based on an actuarial calculation from a third party Basis for our conclusion Based on the audit proccdures performed, wel believe that accordance with on the reasonableness of has utilized a reasonable process for its estimates in Management's estimation usage. The receivable is estimated by allocating the. July billing for the number Basis for our conclusion Based on the audit procedures performed. estimate we believe that accordance management with LGERS and Law Enforcement Special Separation Allowance. Pension Asset and Register Management's estimation The asset (liability) is based on a calculation by a third party actuary State Basis for our conclusion Based on the audit procedures performed, we believe that accordance management with on the reasonableness of has utilized a reasonable process for its estimates in Manmgement's estimation The bond market determines the premium and management amortizes it Basis for our conclusion Estimation process is consistent with accounting policy and this in on the reasomableness of accordance with GAAPI based on our audit procedures performed in  Accrued Other: Postemployment Benefits  Accrued as a liability int the soverament-wide financial statements.  Receivables and revenue recognition include an estimate for unbilled  of unbilled days in June. GAAP. statements. Auditor). GAAP.  on the reasomableness of has utilized a reasonable process for its  in  financial  Recorded as an asset or liability in the government-wide hired by the NC LGERS system (which is audited by the NC  The County records al liability for the debt premium.  over the life of the debt. area.  The County records lease and subscription liabilities and right to use assets as a result of GASB 87 and GASB 96 Suhserprlon-bases Information Technology, Arrangements. based on the County"'s borrowing rate. Right to use assets are of their at the present value of the future minimum lease payments as date ofi inception less accumulated ammortization.  Management's estimation The lease and subscription liabilitics are measured at discount recorded rates Basis for our conclusion Estimation process is consistent with accounting policy and this in on the reasomableness of accordance with GAAPI based on our audit procedures performed in  area.    8  EXHIBIT A  Significant Written Communications Between'  Management and Our Firm  CARTERET COUNTY FINANCE  Denise H. Meshaw, CPA Deputy County! Manager Finance Department  Tel: (252)728-8410 Fax: (252)728-0133 emgcaneetounymagox ww.caneretountyncgow  February2 23, 2024 PBMares, LLP 3621 John Platt Drive Morehead City, NC28557  This representation letter is provided in connection with your audit of the basic financial statements of Carteret County, North Carolina as ofa and fort they year ended) June 30, 2023 for the purpose of expressing an opinion on whether the financial statements are presented fairly, ina all material respects, in accordance with accountingi principles generally accepted int the United States of America (U.S. GAAP). We confirm, tot the best of our knowledge and belief, that as of February 23, 2024:  Financial Statements  . We have fulfilled our responsibilities, as set out in the terms of the audit arrangement letter dated February 28, 2023, for the preparation and fair presentation ofthef financials statements referred to above We acknowledge our responsibility for the design, implementation and maintenance ofi interal control relevant to the preparation and fair presentation of financial statements that are free from material Wea acknowledge our responsibility for the design, implementation and maintenance ofi internal control The methods, data, and significant assumptions used by us in making accounting estimates and their related disclosures are appropriate to achieve recognition, measurement, or disclosure thati isr reasonable in the context of U.S. GAAP, and reflect our judgment based on our knowledge and experience about past and current events, and our assumptions about conditions we expect toe exist and courses of action Significant assumptions used by us in making accounting estimates, including those measured at fair value, arer reasonable andi reflcct ourj judgment based on our knowledge and experience about past and current events, and our assumptions about conditions we expect toe exist and courses ofaction we expect Related-party transactions have been recorded in accordance with the economic substance of the transaction and appropriately accounted for and disclosed in accordance with the requirements ofU.S. GAAP. Types ofr related party transactions engaged inb by the County include: Those with component units for which the County isa accountable. Thosey with other organizations for which ther nature ands significance oft their relationship with the County ares such that exclusion would cause the reporting County's financial statements tol bei misleadingor  ina accordance with U.S. GAAP.  misstatement, whether due to fraud or error. top prevent and detect fraud.  wec expect tot take. tot take.  incomplete.    9  PBMares, LLP February 23, 2024 Page2  Those withj jointly governed organizations in which the County participates. d. Interfund transactions, including interfund accounts and advances receivable and payable, sale and purchase transactions, interfund transfers, long-term loans, leasing arrangements, and guarantees. 7. The financial statements properly classify all funds and activities in accordance with Government Accounting Standards Board(GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, Thef financial statements include all fiduciary activities required by GASB Statement) No. 84, FiduciaryActivities, 9. All events subsequent to the date ofthe financial statements, and for which U.S. GAAP requires adjustment or 10. The effects of all known actual or possible litigation and claims have been accounted for and disclosed in 11. Management has followed applicable laws and regulations in adopting, approving and amending budgets. 12. The government has properly separated information in debt disclosures related to direct borrowings and direct placements of debt from other debt and disclosed any unused lines of credit, collateral pledged to secure debt, terms in the debt agreements relatedtos significant defaultort terminationevents with finance-related consequences and significant subjective acceleration clauses in accordance with GASB Statement No. 88. 13. Components of net position (net investment in capital assets, restricted, and unrestricted) and classifications of fund balance (nonspendable, restricted, committed, assigned, and unassigned) are properly classified and, if  as amended. as amended.  disclosure, have been adjusted or disclosed. accordance with U.S. GAAP.  applicable, approved.  14. Wel have accepted responsibility for all significant judgments and decisions that were made.  15. We agree with the findings of our actuary used in calculating and evaluating our benefit obligations in theLaw Enforcement Officers' Special Separation Allowance, the Register of Deeds' Supplemental Pension Fund, LGERS, and in the Other Post-Employment Benefit (OPEB) Plan and have adequately considered the qualifications oft the specialists in determining the amounts and disclosures used in the financial statements and underlying accounting records. We did not give or cause any instructions tol be given to the actuary with respect to the values or amounts derivedi in an attempt to bias their work, and we are not otherwise aware ofany matters 16. Arrangements with financial institutions involving compensating balances or other arrangements involving  that have had an impact on the independence or objectivity oft the actuary. restrictions on cash balances have been properly disclosed. 17. Tax exempt debt has maintained its status.  18. Weh have no direct ori indirect legal or moral obligation for any debt of any organization, public or private, or to 19. We have complied with all aspects of laws, regulations and provisions of contracts and agreements that would  special assessment bond holders that is not disclosed in the financial statements. have a material effect on the financial statements in the event ofnoncompliance. 20. We have nol knowledge of any uncorrected misstatements in the financial statements. 21. Webelieve the implementation of the GASB Statement listed below is appropriate: GASB Statement No. 96, Swbscription-Based Information Technology Arrangements.    10  PBMares, LLP February 23, 2024 Page3  22, Wehaver requested an unsecured electronic copy ofthe auditor'sreport, compliance reports and Carteret County's basic financial statements and agree that the auditor's report, compliance reports and basic financial statements  will not be modified in any manner. Information Provided 23. We have provided you with:  Access to alli information of which we are aware that is relevant to the preparation and fair presentation of  the financial statements such as records, documentation and other matters; Additional information that you haver requested from us for the purpose oft the audit;  Unrestricted access toj persons within the County from whom you determined it necessary to obtain audit d. Minutes of the meetings of the govering board and committees, or summaries ofactions of recent 24. All transactions have been recorded ini the accounting records and are reflected in the financial statements. 25. Wel have disclosed toy yout theresults of our assessment ofrisk that thel basic financial statements may be materially 26. Itis our responsibility to establish and maintain internal control over financial reporting. One of the components ofinternal control is risk assessment. Wel hereby represent that our risk assessment process includes identification and assessment ofrisks ofmaterial misstatement due to fraud. Wel have shared withy you our fraud risk assessment, includinga description oftherisks, our assessment ofther magnitude and likelihood of misstatements arising from thoserisks, and the controls that wel have designed and implemented in response to thoserisks. 27. We have no knowledge of allegations of fraud or suspected fraud affecting the County's financial statements  evidence; and  meetings for which minutes have not yet been prepared.  misstated as a result of fraud.  involving: Management.  b. Employees who have significant roles in internal control.  Others where the fraud could have ar material effect on the financial statements.  28. Wel have no knowledge of any allegations oft fraud or suspected fraud affecting the County's financial statements received in communications. from employees, former employees, analysts,regulators, short sellers or others. 29. Wel have no knowledge ofnoncompliance or suspected noncompliance with laws and regulations. 30. We are not aware of any pending or threatened litigation and claims whose effects should be considered when 31. We have disclosed to you the identity of the County's related parties and all the related-party relationships and 32. We have informed you of all significant deficiencies, including material weaknesses, in the design or operation ofi internal controls that could adversely affect the County's ability to record, process, summarize and report 33. We are aware ofno communications from regulatory agencies concerning noncompliance with, or deficiencies  preparing the financial statements. transactions of which we are aware.  financial data.  in, financial reporting practices.    11  PBMares, LLP February 23, 2024 Page 4  Supplementary Information  34. With respect to supplementary information presented in relation to the financial statements as a whole:  We acknowledge our responsibility for thej presentation of such information.  b. Webelieve suchi information, including its form and content, is fairly presented in accordance with U.S. The methods of measurement or presentation have not changed from those used in the prior period. There are no underlying significant assumptions or interpretations regarding the measurement or presentation When supplementary information is not presented with the audited financial statements, we will make the audited financial statements readily available to the intended users of the supplementary information no later than the date ofissuance of the supplementary! information and the auditor's report thereon. 35. With respect to management's discussion and analysis and the schedules of funding progress and contributions presented as required by the Governmental Accounting Standards Board to supplement the basic financial Wea acknowledge our responsibility for the presentation of such required supplementary information. b. Wel believe such required supplementary! information is measured and presented in accordance with Ther methods ofmeasurement or presentation have not changed from those used in the priorperiod. d. There are no significant assumptions or interpretations regarding the measurement or presentation ofsuch information outside the assumptions andi interpretations used in the presentation oft the financial statements. In connection with your audit conducted in accordance with Government Auditing Standards, we confirm that 36. Isresponsible: for the preparation and fair presentation of the financial statements in accordance with the 37. Is responsible for compliance with the laws, regulations and provisions of contracts and grant agreements 38. IsI not aware of anyi instances that have occurred, or are likely tol have occurred, of identified ands suspected fraud and noncompliance with provisions of laws, regulations, contracts and grant agreements that have a material 39. Is responsible for the design, implementation and maintenance ofi internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 40. Acknowledges its responsibility for the design, implementation and maintenance of internal controls to prevent 41. Has taken timely and appropriate steps to remedy fraud; noncompliance with provisions of laws, regulations,  GAAP.  ofsuch information.  statements:  guidelines prescribed by U.S. GAAP.  Compliance Considerations management:  applicable financial reporting framework. applicable to CarteretCounty.: effect on the financial statements.  and detect fraud.  contracts and grant agreements; or abuse that the auditor reports, ifapplicable.    12  PBMares, LLP February 23, 2024 Page 5  42. Has aj process to track the status ofaudit findings and recommendations. objectives and whether related recommendations have beeni implemented. management's planned corrective actions, for the report.  43. Has identified for the auditor previous audits, attestation engagements and other studies related to the audit 44. Has provided views on the auditor's reported findings, conclusions and recommendations, as well as 45. Acknowledges its responsibilities as it relates to non-audit services performed by the auditor, including a statement that it assumes all management responsibilities; that it oversees the services by designating an individual, preferably within senior management, who possesses suitable skill, knowledge or experience; that it evaluates the adequacy and results oft the services performed; and that it accepts responsibility for the results of In connection with your audit of federal awards conducted in accordance with Subpart F of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform. Adminishrative. Requirements, Cost Principles, and Audit Requirements for Federal. Awards (Uniform Guidance) and the State Single Audit Implementation Act, we confirm: 46. Management is responsible for complying, and has complied, with the requirements of Uniform Guidance and 47. Management is responsible for understanding and complying with the requirements of laws, regulations, and the provisions ofcontracts and grant agreements related to each of its federal and state programs. 48. Management is responsible for the design, implementation and maintenance, andl has designed, implemented and maintained, effective internal control over compliance for federal and state programs that provides reasonable assurance that the auditee is managing federal and state awards in compliance with federal and state statutes, regulations, and the terms and conditions of the federal and state award that could have a material effect on its 49. Management is responsible for the preparation of the schedule of expenditures of federal and state awards, acknowledgès and understands its responsibility for the presentation of the schedule of expenditures of federal and State awards in accordance with the Uniform Guidance and the State Single Audit Implementation Act; believes the schedule of expenditures of federal and state awards, including its form and content, is fairly presented in accordance with the Uniform Guidance and the State Single Audit Implementation Act; asserts that methods of measurement or presentation have not changed from those used in the prior period, or ifthe methods of measurement or presentation have changed, the reasons for such changes has been communicated; and is responsible for any significant assumptions or interpretations underlying the measurement or presentation ofthe 50. Management has identified and disclosed all of its government programs and related activities subject to the Uniform Guidance and State Single Audit Implementation Act compliance audit. 51. Management has identified and disclosed tot the auditor the requirements of federal and state statutes, and the terms and conditions of federal awards that are considered to have a direct andi material effect regulations, on each 52. Management has made available all federal and state awards (including amendments, if any) and any other correspondencer relevant to federal and state programs and related activities that! havet taken place with federal and 53. Management has identified and disclosed to the auditor all amounts questioned and all known noncompliance with the direct and material compliance requirements of federal and State awards or stated that there was nos such  the services.  the. State Single Audit Implementation. Act.  federal and state programs.  schedule of expenditures of federal and state awards.  major program.  state agencies or pass-through entities.  noncompliance.    13  PBMares, LLP February 23, 2024 Page 6  54. Management believes thatt thea auditeel has complied witht the directa andi material compliance requirements (except 55. Management has made available all documentation: related to compliance witht the direct andi material compliance requirements, including information related tot federal ands state program financial reports ando claims for advances 56. Management has provided to the auditor its interpretations of any compliance requirements that are subject to 57. Management has disclosed tot the auditor any communications from federal awarding agencies and pass-through entities conceming possible noncompliance with the direct and material compliance requirements, including communications received from the end oft the period covered by the compliance audit to the date ofthe auditor's 58. Management has disclosed to the auditor the findings received and related corrective actions taken for previous audits, attestation engagements, and internal or external monitoring that directly relate to the objectives of the compliance audit, includingf findings received and corrective actions taken fromt the end oft the period coveredby 59. Management is responsible for taking corrective action on audit findings of the compliance audit and has developed a corrective action plan that meets the requirements of the Uniform Guidance and the State Single 60. Management has provided the auditor with all information on1 the status oft the follow-up on prior audit findings by federal awarding agencies andy pass-through entities, including all management decisions. 61. Management has disclosed the nature of any subsequent events that provide additional evidence with respect to conditions that existed at the end oft the reporting period that affect noncompliance during the reporting period. 62. Management: has disclosed alll known noncompliance with direct andi material complaneerquiremens occurring subsequent tot thej period covered byt the auditor'sn report or stated that there were no such known instances. 63. Management has disclosed whether any changes in internal control over compliance or other factors that might significantly affect internal control, including any corrective action taken by management with regard to significant deficiencies and material weaknesses in internal control over compliance, have occurred subsequent 64. Federal and state program financial reports and claims for advances and reimbursements are supported by the 65. The copies of federal and state program financial reports provided to the auditor are true copies of the reports submitted, or electronically transmitted, to the federal agency or pass-through entity, as applicable. 66. If applicable, management has monitored subrecipients to determine that they have expended pass-through assistance in accordance with applicable laws and regulations and the terms and conditions oft the subaward and have met the other pass-through entity requirements of the Uniform Guidance and State Single Audit 67. If applicable, management has issued management decisions for audit findings that relate to federal awards it makes to subrecipients and that such management decisions are issued within six months of acceptance of the audit report by the FAC. Additionally, management has followed up to ensure that the subrecipient takes timely and appropriate action on all deficiencies detected through audits, on-site reviews and other means that pertain to  forr noncompliance ith has disclosed to the auditor).  and reimbursements. varying interpretations.  report.  the compliance audit to the date oft thea auditor'sreport.  Audit Implementation. Act.  tot the period covered by the auditor's report.  books and records from which the basic financial statements havel been prepared.  Iimplementation4ct.  thei federal award provided to the subrecipient from the pass-through entity.    14  PBMares, LLP February 23, 2024 Page 7  68. Ifa applicable, nanagement has considered the results of subrecipient monitoring and audits, and has made any 69. Management has charged costs to federal and state awards in accordance with applicable cost principles. 70. Management is responsible for, and has accurately prepared, the summary schedule of prior audit findings to include all findings required to bei included by Uniform Guidance and the State. Single. Audit ImplementationAcl. 71. The reporting package does not contain protected personally identifiable information. 72. Management will accurately complete appropriate sections oft the data collection form. 73. fapplicable, management has disclosed: all contracts or other agreements with service organizations. 74. Ifapplicable, management: has disclosed tot the auditor all communications from service organizations relating to 75. During the course of your audit, you may have accumulated records containing data that should be reflected in our books and records. All such data have been so reflected. Accordingly, copies of such records in your  necessary adjustments tot the auditee's own books and records.  noncompliance: att those organizations. possession are no longer needed by us. Carteret County, North Carolina County-Manager EGt an Dee'Meshaw, Deputy County Manager  PBMares. CPAS and Consultants  February 23, 2024 To the County Manager and Carteret County, North Carolina Beaufort, North Carolina  Assistant County Manager of Finance and. Administration  In planning and performing our audit of the basic financial statements of Carteret County, North Carolina (the County) as of and for the year ended June 30, 2023, in accordance with auditing standards generally accepted in the United States of America, we considered the County's internal control over financial reporting (internal control) as al basis ofdesigning audit procedures that are appropriate in the circumstances for the purpose ofe expressing our opinions on the financial statements, but not for the purpose ofe expressing an opinion ont the effectiveness oft the County's internal control. Accordingly. we do not express an opinion A deficiency exists when the design or operation ofa a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A deficiency in design exists when (a) a control necessary to meet the control objective isr missing. or (b) an existing control is not properly designed so that even ifthe control operates as designed, the control objective would not be met. A deficiency in operation exists when a properly designed control does not operate as designed or when the person performing the control does not possess the necessary A material weakness is a deficiency, or a combination of deficiencies, ini internal control such that there is a reasonable possibility that a material misstatement of the financial statements will not be prevented, or A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness,; yet important enough tor merit attention by those charged with governance.  ont the effectiveness of the County's internal control.  authority or qualifications to perform the control effectively.  detected and corrected on a timely basis.    15  County Manager and Carteret County, North Carolina February 23, 2024 Page 2 Internal Control Deficiency  Assistant County Manager of Finance and Administration  Following is a description of an identified control deficiency and compliance finding that we determined Timeliness of Audited Financial Statements Submission: Internal Control Deficiency North Carolina General Statute 159-34 (NC G.S 159-34) requires the submission of the annual audit 4 months past the end oft the fiscal year, with an extended due date at 51 months past the end of the fiscal year. Staffturnover: and implementation ofar newt tax software package resulted ins significant delays in the: ability  did not constitute as significant deficiency or material weakness:  toj prepare for audit.  We recommend that controls be put in place to ensure report is submitted timely.  Timeliness of Second Party Reviews of Medical Assistance Eligibility: Internal Control Deficiency We noted during testing Medical Assistance Eligibility that twoi in out ofthe three Special Assistance cases, 2nd party reviews were not performed timely. Upon further investigation, we noted that 21 in out of the 25 Special Assistance cases, 2d party reviews were not completed timely. They were completed in July 2023 instead of throughout the year. These untimely Special Assistance reviews did not have an effect on the County's quarterly 2nd Party review requirement compliance with the NCDHHS, as those were fulfilled. without exception. We noted that the untimely reviews were due to time constraints created by staff turnover and a significant increase in case load, which resulted in the supervisor having to work case We recommend that al back-up plan be implemented toi insure that these requirements are performed timely, This letter isi intended: solely for the information and use ofthe County Manager, Assistant County Manager of Finance and Administration, management and others within the County and is not intended to be and should not be used by anyone other than these specified parties. We appreciate serving Carteret County, North Carolina and would bel happy to assist youi in addressing andi implementing any ofthe: suggestions in  applications and recertifications herself as well tol help meet caseload demands. such as training additional staff or hiring additional staff as needed.  this letter.  PBMaress LLP PBMares, LLP  EXHIBIT B  Performance Indicators  The following images from the audit report are difficult to read due to the small size of the font used in the original document. Please contact the Carteret County Finance  Department for a copy of the report.    16  PERFORMANCE INDICATORS  Martingenwdiwbmmasak fromy youru unit'sa auditn reportwasu usedtog generatet thek following trend:a andp performancei indicators. Wehavec createdu this Performancel indicatort tabtomaketh thesele indiatorsa avallablete toa auditorsa youra auditiso conducted. lfany unit'sn resultsa ares shadedn red, theu unitn musts submita" "Response tot the Auditor's Findings. Recommendations, and Fiscal Matters" within 60d days fromt thea auditar's boardp  andlocaigover must Then response addressa all  performanceir indicatorss shadediared.  Unit Name: Unit Number:  Carteret County 5115  FiscalYear2023  bybmutiondlPerfomane" Indicator  Int thep past, units of government have been grouped by population to evaluate ratios and benchmarking (including Fund Balance Available). Beginningy with fiscaly year 2020, wel have grouped units General Funde expenditures forp purposes ofevaluatingt ther minimum amount offu fund balancea aunitn needs to operate. Aunit's GeneralF Funde expenditures provedt tobea abetter correlation tot thea amount byl off funds balance neededt to operate, especially foru units withl large! higher education ort tourism populations. Activity from Debt Service Funds (fa applicable)i isir included int thec calculation because these Thet table below! lists thet thresholds that are used in the analysis ofy your unit's fiscal health. These thresholds were determined! based on an analysis ofp previous years general fund artivity. These  fundst typicallyo originate fromt theG GeneralF Funda anda aret transferredt toal Debt Service Fund.  thresholdsv willb ben monitoreda andu updatedasa applicable. Municipalities General FundE Expenditures below: PowellB Bill $100,000 260% $100,000to $999,999 132% $1,000,000to $9,999,999 63% Aboves $10,000,000 46% Counties General FundE Expenditures! below PowellBill Below! $100,000,000 $100,000,000a anda above 32% dates olthisw priory Prior Year Finandalo Daba. GENERALE FUND:  MedianFBAaskof Minimum Thresholds  Expendituresw without FBAas%of FofMonths FBAI using Annualized  Expenditures 100% 71% 34% 25%  Expenditures 12.00 852 4.08 3.00 Expenditures 240 192  Unitso of government areg grouped! by general funde expenditures forp purposes of evaluating available fundb balance asap percentage of expenditures (GFF FBA%). Fachg grouping category hash its ownn minimumt threshold. lfyoua areint thei lower quartie your GF FBAS might bec considereda aperformance indicator ofc concern! andy youn might be askedt to communicate tous. To the left are the minimum thresholdsf for Municipalitiesa andCounties.  MedianF FBAas%of Minimum1 Thresholds 39% rors  Expenditureswithout FBAas%of ofMonths FBAU using Annualized  Expenditures 20% 16%  GENERALF FUND:  been ece the GCS taft, please dtap papultedont thisw worishet Picise  hreshold UnhR  Fund balance available for appropriation is an important reserve for locall governmentst top provided cashf flowd duringperiodso ofdecining revenuesa andtobel used fore emergencies and unforeseent expenditures. Their informationt tothel leit indicatest thea amounto ofavailablec casho onh hand. Youwilla alsos see thea averagef for units ofy yours size Note thats 8.33% represents enough fund balance tocover jonly one month of expenditures. Normaly, a unit has to either increasel 81.14% revenuesord decreases expenditurestt toincreasef fund! balancea available. Thisc calculationl looks atfundb balance available plusd debts service fundb balance M applicable). This number ist them divided byt thet totaloft totale erpendituresp plus  Fund Balance Available asaF Percentage ofExpenditures  100,00% 80.0016 60.00% 20.00%  #2021 #2022 2023  transfersoutless! bondproceeds.  Unit Name: Unit Number:  Carteret County 5115 Unh Dataf from Auditv  FiscalYear2023 Positive Changein  dhhmmandaw  Therev prprlatudhundhalamcak fortheG GeneralF Fundinthe2 2023b budgetA ANDY yourd changainfundhalmaew wasi Pleases tateil fundlalancew wasusedforo operationsercapitalp purpesesi  fthe GeneralF Fundh hasr more expenditures thanr revenuesb becausec ofo operational thisp practiced couldre resulti ind snadatwiawew available. The General Fund has fundd deficity whichr meanst thatt the unit's revenues and other receipts are inadequate to support its operations. GS. 159 13D/2) requirest thatt the boardf fundt thef fulla amounto ofapriort fiscaly year's deficitinthel immediately aftert the June3 30, fiscaly year-end. Thelawn requires sucha actionbel takent to stop anyf further deterioration oft thec overall financial condity fund. Pleaseletusknowit ifthed deficity wasf fundedinthebudget: andw theunitp planstotaket tobringt thes generalf fundbalanceu uptoana accepta  FundBalance N/A issues andf fundb balancev wasa appropriatedt toc covert thel loss, thec continuationol  TheG General Fundhadte totalf fundbalancele lessti thanz zero- FundDehdt  Positive FundBalance $92,319,462 current fiscaly years budget. Therefore, this deficits should haveb been funded    17  Unit Name: Unit Number:  Carteret County 5115  ofPerformance Indicator performancel that the mores forits current bills unrestricted cash plus wed This could indicate that the fund may tinues,  WATER UND:  Note: more than performanca indicator is AGuick than thanv 3.39 trom customers (accounts have difficulty paying its current bills. Hthis ystem  Please  Quick Ratio- Watera ands Sewer  2021 2022 #2023  202  This calculation subtracts operating expenses from operating revenues. Depreciation expense is not included the calculation but debt principal and notcoveringy youro operating expenses anddebtservice payments. This indicatar how many month's worth of expenses finduding debt nterest but not depreciation) can pay based on the amound cash aty year-end. Thet typical billing cyle is one'r month 8. 3339 251.30N and one extra month usually gives local government enough cash handle unusual monthly expenses (16.66%). This 165 would be the bare minimum! The rate of the Water and Sewer Fund should support the operating without operatingsubsidieso transfersf from otherf funds. This capitala assets condition ratiof formula calculates the remaining uselul lifeA remaining asset value less than 0.50 may signalt ther need to replac the AS stewards of the public's resources, the governing body is responsible for ensuring that the audited financial statements are available to the public ina timely manner. External groups such ast the North Carolina General Assembly. federal and State agencies that provide funding and other public associations needcurrent financiali information abouty your locals govemnmentaswell  Operating Net Income (loss) excluding depreciation, induding debr! 1174895 $214.260 $709 Greater zero $709 interest payments arei included. Anepative balancei indicates thaty your rates arel  cash debt  excluding  including 216.05% fort  251.305  thef from  flow issues.  thatares than fsuch trensfers-in andi 043  xpenses assetsint  aining 040 ofassetg greater than 2023 Target  pital INDICATORS:  date  023  Target Fiscalvear 2023  Unit Name: Unit! Number:  Carteret County 5115 314  Indicator  This indicators showst thatt the local government didnot collect 3% (or more) ofits budgeted ad valorem taxes. This could be an indicator of negative events, inaccurate budgeting. and/or issues with the collection process. Uncolectedrevenves: atthe 3levelrepresents several pennies taxrate.  The budgeted ad valorem finduding motor for the General fund  10  negative percentage.  thet disouss  you expecta inp value fory your next propertyl thate exceed thel legalb budget ordinance. This system, contract approval process and/or compliancev with! North CarolinaG General Statute 159. Thisk indicatori ridentifies whether thes unit hasz any materialw weaknesses, management! letter commentsori items identifiedon Completedby Audit tab including 1055, 1056, 1058, 955and 957, Theindicatori istod determineit ifany time duringthef fiscaly year, the unit was without board- appointedf financed oficer. The indicatoris istod fanyt time duringt thef fiscal year, appointedi finance officer was bonded.  N/A  revaluation which Theunithase thatthe payment significantd  Target    18  Unit! Name: Unit Number: INDICATORS:  Carteret County 5115  FiscalYear2023 Target  bphmusteadretemanel Indicator  GENERAL  2023 2023 fthe  The unit hadp problems with debts service payments being late and/or did not comply with thebond No  Thisi indicatorli listsv whethero rornottheu unith hasi issues withd debts servicep payments Thisi indicator advisesi ifany otheri issues that the units should laddress  orbondcovenants.  Aretherea additionalia lissuesti theunits shoulda addresst thata allectthe fscalhealthe Zlelhtrihtandnrow! FPIC Response.  unicatedtot thes unitd duringthea audtp presentation? Please adude details  inthe FPIC response letter.  FINANCIAL PRESENTATION CONTINUED  Ms. Meshaw thanked Mr. Bittner for the audit report and stated the County has a good Ms. Meshaw continued her presentation by stating sales tax revenue is meeting budget. Right now, it is at 1.5% growth which equates to $300K in revenue. Home loan interest rate increases have impacted the Register of Deeds fee revenue. That department is currently down $500K in fee revenue. Ms. Meshaw predicts that the Feds may start Total budgeted revenue is $127.74M. Expenditures are less than the budget in every category. Lapse salary and benefits are the largest cause for this. There are currently The Carteret County Public School System and Carteret Community College $4M in funds from FY23 have been rolled forward for uncompleted projects. An example is the repair of the façade at the Courthouse which was budgeted in FY23 but Vice-Chairman Mansfield and Ms. Meshaw discussed ABC revenue which is down due to the store being closed in Newport for renovations. Sales are also down statewide. Ms. Meshaw concluded her presentation by stating she expected an increase in school funding requests from the School Board and reminded the commissioners that we will  working relationship with his firm.  doing interest rate decreases in September 2024.  50 vacant positions throughout County Government.  expenditures have met budget.  repairs will not begin until mid FY24.  have debt service of $2M on the GO Bonds coming due.    19  General Fund FY23  General Fund ended thet fiscal yeari in as strong Several major revenue sources exceeded the budget; expenditures were less than! budgeted.  Carteret County Government Financial Review Fiscal Year Ended 06/30/23 March4,2 2024  financial position.  General Fund Revenue FY23  Other 3%  Sales and Services 4%  Transfer In 11%  Ad Valorem Taxes 45%  Intergovernmental 15%  Permits and Fees 4%  Other Taxes 18%  General Fund FY23 Revenue Budget to Actual Comparison  Amended Budget 23 $55.96 Million 20.66 Million 5.03 Million 18.19 Million 5.09 Million 15.35 Million 7.20 Million $127.48Mlion  Actual Revenue FY23 $56.84 Million 22.61 Million 5.19 Million 19.45 Million 5.31 Million 17.07 Million 0.00 Million $126.47 Million  Variance with Budget  Ad Valorem Sales & Other Taxes Permits and Fees Intergovermental Sales and Services Other Revenue Appropriated Fund Balance Total  ($1.01)Million    20  General Fund Expenditures FY23  General Government 119  Cultural& Recreational 4% Debt Service 3%,  Other 149  Public Safefy 16%  Enviromental Protection 4% Economic Development 3%  Education 27%  Human Services 18%  General Fund FY23 Expenditures Budget to Actual comparison  Amended Budget FY23 20.60 Million 1.99 Million 4.91 Million 4.74 Million 22.52 Million Amended Budget FY23 $26.41 Million 4.63 Million 4.94 Million 4.16 Million 18.98Million $127.48_Million  Actual FY23 18.46 Million 1.49 Million 4.61 Million 3.42 Million 19.99 Million Actual FY23 $26.41 Million 3.93 Million 4.14 Million 4.04 Million 13.89 Million  Variance with Budget  General Government Public Safety Transportation Environmental Protection Economic & Physical Development Human Services  $13.60 Million $12.75 Million  General Fund FY23 Expenditures Budget to Actual Comparison  Variance with Budget  Education: Public Schools Education: Community College Cultural & Recreation Debt Service Non Departmental (Transfer to other funds and non department expenses) Total  $113.13.Million $14.35Milion  General Fund Summary FY23  Amended Budget $127.48 Million 127.48 Million  Actual $126.47 Million 113.13Million $13.34Million  Total Revenue and Other Sources Total Expenditures and Other Uses Revenues and Other Sources Over Expenditures and Other Uses    21  Change in Fund Balance FY23  Increase In Total Fund Balance Increase in Total Fund Balance Analysis: State Statute: and Beach Nourishment from FY22)  $13.34 Million  Restricted Fund Balance: Neti increases in restricted reserves (Restricted by Committed Fund Balance: Revaluation Fund unspent balance Assigned Fund Balance (FY24 Adopted Budget appropriated fund balance increased from adopted FY23 budgeted fund balance) (FY23 $3.3M; FY24 $4.3M)  $8.59 Million (.39) Million Million 1.00 4.14Million $13.34Million $38.98 Million 4.14 Million $43.12.Million 43.45%  Unassigned Fund Balance: Increase Increase in Total Fund Balance 06/30/23 Unassigned Fund Balance. Analysis: Unassigned Fund Balance 06/30/22 Unassigned Fund Balance Increase FY23 Ending Unassigned Fund Balance 06/30/23  Unassigned Fund Balance as Percentage of GF Expenditures  Unassigned Fund Balance Analysis FY23  Governmental Revenues Greater than  Amended Budget: Ad Valorem Tax Sales Tax  $.88 Million 1.95 Million .38 Million 1.01 Million .17 Million $4.39 Million  Permits and Fees/ Sales and Services  Investment Earnings intersovermenta  Total Revenues Greater than Amended Budget  Unassigned Fund Balance Analysis FY23  Governmental Revenue Greater than Budget $4.39 Million  (Previous slide)  Governmental Unspent Expenditures:  Salaries and Benefits Maintenance Other Operating Capital Total  $3.08 Million 1.74 Million .70 Million 1.43 Million $6.95 Million ($7.20 Million) $4.14Million  Less Appropriated Fund Balance Net Increase to Unassigned Fund Balance    22  PROJECTS PROPOSAL PRESENTATION  Mr. Gene Foxworth, Assistant County Manager/Planning Director, began his presentation with the window replacement projects at the new Administrative Building and the Western Planning Office. The animal shelter requested $300K in repairs and the County plans to do about $100K of that including insulation and electrical upgrades. Storage needs continue to be a problem throughout the County. Chairman Farrington asked how we are getting by with our storage needs currently. Mr. Foxworth replied that several departments have concentrated on digitizing the files that can be digitized, but some records cannot be destroyed. Commissioner Chadwick asked for clarification on Clerk of Court storage needs. A report on the Court's needs will be forthcoming. Commissioner Cavanaugh asked about the window replacement lifespan. Mr. Foxworth stated most new windows have a 20 year lifespan. Mr. Foxworth continued with the façade repairs at the Courthouse which will begin in about two weeks. Itwill cost about $680K to replace all oft the windows in the Courthouse annex. Additional projects are  listed on the spreadsheet below.  PROPOSED PROJECTS FOR FY 24/25 402 Broad: St., N.A.B, Western Office, Animal Shelter, EDG, GSOF, Misc.  The General Services Division have met and discussed needs fort the upcoming year. Below youy willf finda a New Admin Building Window Replacement- - This project will replace all the windows at the Western Office Window Replacement - This project will replace eleven (11) windows with new Animal Shelter Main House Ceiling Spray Foam Insulation - This project will consist of removing the dirty blown-in insulation and replace with spray foam insulation. Estimated total- Animal Shelter Electrical Upgrade This project will have a new service installed for additional appliances as well as upgrade to the existing. Estimated total- $60,000.00 Storage Facility - This project will provide adequate storage to multiple departments as well as house surplus items. Estimated total-$450,000.00 (considering this is built on existing County Various Maintenance & Repairs - These projects will consist of upgrading the old' T-121 lighting att the Western Office with LED, exterior repairs and painting, metal door replacement and continued LVP flooring within the EDC and exterior painting of rusted structures at the General  list of projects by department or location for convenience not priority. N.A.B with new energy efficient windows. Estimated total- - $82,000.00 energy efficient windows. Estimated total- $36,000.00  $60,000.00  property)-  Services Facility. Estimated total. $104,500.00    23  PROPOSED PROJECTS FOR FV 24/25  Courthouse Complex  The General Services Division have met and discussed needs for the upcoming year. Below you will find a Admin & Annex Window Replacement: - This project will replace the original single pane windows and associated trim for the Administration and Annex. Estimated total $680,000.00 Horseshoe Parking Lot This project will mill and overlay the horseshoe parking lot to ensure: a flat smooth surface. Estimated total $330,000.00 Water Source Heat Pump Replacement: - This project will replace six (6) defective, leaking units with modern energy efficient units. Estimated total -$137,000.00 District Court Ceiling Tile Replacement: This project will replace the old, worn and stained ceiling tiles within the courtroom with PVC tiles. Estimated total $ 26,000.00 Courtyard & Annex/Oid Courthouse Divider Storefront Replacement: - This project will replace the discontinued, broken storefront systems with new frames, glass and doors. Estimated total Courthouse Flag Pole Repairs This project will relocate the main pole so the flag does not get caught during half-staff, straighten out service poles and install new hardware. Estimated total- Various Maintenance and Repairs- These projects consist of replacing worn damaged ceiling tiles with PVC tiles as well as replace outdated faucets in twelve (12) public restrooms, replacement of loose and worn rubber steps and cove base on the first story of the Annex, replace remaining Interior signage with new standoff glass, continued painting of the Old Courthouse and Annex interior, replacement of exterior metal doors and make repairs to the wooden ceiling within Guardian Ad Litem. Estimated total- $187,000.00  list of projects for convenience not priority.  -$190,000.00 $38,000.00  PROPOSED PROJECTS FOR FY 24/25  Department. of Social Services  The General Services Division in collaboration with the Department of Social Services have met and discussed needs for the upcoming year. Below you will find a list of projects by convenience not priority. Second Story Painting & Repairs - This project will repair sheetrock and update the appearance Second Story Ceiling Grid Repair, Tile & Register Replacement - This project will eliminate stained, rusted and broken ceiling system for the second story. PVC ceiling tiles and registers will be used to prevent future rusting and condensation leakage. Estimated total- $95,000.00 Second Story Flooring Replacement - This project will replace aged and worn carpet for all second story areas with carpet tiles as well as replace both stairwells with rubber flooring. Second Story Lighting Upgrade - This project will replace all second story lighting with new Activity Center Cabinet Glass- This project will reutilize the existing built in cabinets within the Activity Center by installing custom lockable glass doors. Estimated total $6,000.00 Landscaping: - This project will consist of removing existing shrubbery and foliage around the perimeter of the facility and professionally installing low maintenance trees, shrubs, aluminum  of all areas on the second story. Estimated total $35,000.00  Estimated total $65,000.00  drop in LED fixtures. Estimated total $35,000.00  edging and mulch. Estimated total $50,000.00    24  PROPOSED PROJECTS FOR FY 24/25  Health Department  The General Services Division in collaboration with the Health Department have met and discussed needs for the upcoming year. Below you will find al list of projects by convenience not priority. Rear Gutter Discharge - This project will consist of cutting out existing rear sidewalk to redirect gutters to discharge into the parking lot. Estimated total- $22,000.00 Rear Canopy Replacement- This project will remove and replace the rusted, deteriorating back canopy that houses the generator and other equipment. Estimated total- $90,000.00 Interior Painting of Main Areas - This project will update the overall appearance of the main Clinic Ceiling Grid Repair, Tile and Register Replacement - This project will eliminate stained, rusted and broken ceiling system within the Clinic. PVC ceiling tiles and registers will be used to prevent future rusting and condensation leakage. Estimated total $72,000.00 ABC Conference Room Renovation - This project will consist of minor ceiling grid repairs, replacement of discolored ceiling tiles with PVC ceiling tiles, replacement of old cabinets/kitchen area, removal of existing partitions, sheetrock repairs and painting. Estimated Continued Flooring Replacement - This project will start phase two of four of replacing old and torn carpet with an LVP product throughout the facility. Estimated total $75,000.00  lobby and main hallways. Estimated total $50,000.00  total $30,000.00  PROPOSED PROJECTS FOR FY 24/25  Senior Center  The General Services Division in collaboration with the Senior Center have met and discussed needs for the upcoming year. Below you will find al list of proposed projects for FY 24/25 for convenience not priority. Metal Door Repair & Paint- This project will repair rusted exterior surfaces and apply fresh  paint. Estimated total $14,000.00 Estimated total - $50,000.00 total- $38,000.00  Parking Lot - This project will sealcoat and restripe ground markings.  Carpet Replacement - This project will replace all worn 20-year carpet throughout. Estimated Cabinet Refurbishment- - This project will reface all countertops with Formica and repaint all Gutter Cleanout - This project will clean all plugged gutters and downspouts around the entire Entry "A" Storefront & Door Replacement - This project will remove the fogged and damaged  existing cabinetry. Estimated total-$17,000.00 facility. Estimated total $6,000.00 Estimated total -$34,500.00  storefront and doors which will be equipped with automatic openers.    25  COUNTY STAFFING DISCUSSION  Tommy Burns, County Manager, stated Ms. Meshaw and Sheriff Asa Buck wanted to discuss some staffing issues. Ms. Meshaw said she wanted to give a bird's-eye view of employee staffing. 307 County employees have less than 5 years' experience. Less than 1% of our staff have 30+ years' experience. The under 5 years staffing is broken out even further; 107 employees have less than 1 year experience. That is a challenge with our workforce. A young workforce is a challenge for training and mentoring demands. We have 50 vacant positions, most being in the Sheriff's Division and  Communications.  Employee Staffing  350 300 250 200 150 100 50 o 0-4 Employees 307  61.03%  14.9196 5-9 75  9.34% 10-14 47  7.36% 15-19 37 Years with County  3.38% 20-24 17  3.38% 25-29 30 and more 17  .6%  Percentage of filled positions  Employee Longevity Less than 5 Years  120 100 80 60 40 20 o Employees  21.27%  14.12%  10.54%  8.75%  6.36%  Less than 1 107  71  53 Years with County  32  Percentage of filled positions    26  Sheriff Asa Buck began his presentation with a discussion on staff turnover. 84 people have left in 5 years, that's a 73% turnover rate. There are 34 shift positions and 19of those employees have been here for 1 year or less. The Detention Center has 8 open positions and people are not applying to work in the jail. Deputies and Detectives are covering shifts in the jail. We are in a bad situation when it comes to jail staffing. The Patrol Division is not quite as bad, but there is a lot of turnover and a lack of applicants. Onslow County paid one of our deputies $14K more per year. We lose to other counties and our own municipalities because they pay better. When deputies Sheriff Buck believes an increase in salary is the solution. He showed his hourly wage comparison chart with the County being at the bottom of the chart. He is proposing a 12% pay increase this year. This will put us in the pack with the top four paid municipalities in the county. Commissioner Cavanaugh stated this problem continues every year. We raise our pay and the municipalities follow. This has got to stop  leave they take the training dollars and knowledge with them.  somewhere.  Sheriff Buck stated open positions hinder covering training, sick leave, etc. We don't have an over abundance of deputy positions. Commissioner Cavanaugh asked about total open positions. Sheriff Buck responded currently there are 4 criminal division vacancies and 8 detention officer vacancies. Commissioner Cavanaugh said this is a Sheriff Buck stated we have enough in lapsed salary to pay this 12% increase for the rest of the year and still have funds left in the bank. Commissioner Chadwick asked about creating a pay scale for officers, detention, and communications. Mr. Burns Chairman Farrington asked about part-time employees helping with gaps in shift coverage. Sheriff Buck said we could not operate without part-time help. Transports are a good example. We have three part-timers that do the civil side. But Patrol needs to be employees who work on the road on a regular basis, that work every day. There Chairman Farrington stated he toured a jail in Pamlico. We need to be able to run with technology and not just people. Electronic monitoring saved the County $571K in FY23; over 5 years the savings have been about $1.8M. Sheriff Buck said he would like to Chairman Farrington said the commissioners need to work on this and we will continue  state wide problem.  responded that he and his staff are looking into this option.  is only one part-timer who works the road on a regular basis.  see that savings reinvested in our folks. this discussion at the next Board meeting.    27  SALARY COMPARISON  Starting pay-training/entrylevel officer Emérald Isle (6% colal lasty year) Beaufort Pine Knoll Shores Sheriff's Office (proposed 12%i increase) Atlantic Beach (received 8%i in 2023) MHC (requesting as paystudy & increase FY24/25) Newport Cape Carteretirequesting 48,000inb budget) Indian Beach Sheriff's Office Current $23.50 $23.00 $22:81 $22.50 $22.00 $2150 $21.00 $20.50 $20.00 $19.50 $19.00 $18.50  Hourly $22.81 $22.75 $22.66 $22.24 $22.09 $21.48 $21.14 $21.07 $20.50 $19.86 Hourly  Hours paid biweekly 2184/84hr 2080/80hr  84HR 84 hr 84hr 84hr 84hr 84hr 84hr 84hr 84hr 84/80 hr  $49,820.10 $47,447.71 $49,686.00 $47,320.00 $49,489.44 $47,132.80 $48,572.16 $46,259.20 $48,242.38 $45,945.12 $46,910.14 $44,676.32 $46,169.76 $43,971.20 $46,016.88 $43,825.60 $44,772.00 $42,640.00 $43,374.24 $41,308.80  $22.75  $22.66  522.24  $22.09  $21.48  $21.14 $21.07  $20.50  $18.00 Emeraldisle/6% Beaufort Pinek Knolls Shores SheriffsOffice AtlanticE Beach MHCtrequesting Newport Cape Carteret IndianE Beach SheriffsOffice Current  colalasty year)  (proposed12% (received8sin apaystudy& Increase) 2023) increase.  (requesting 48,000in budget)  FY24/25)  HOURLY WAGE COMPARISON  5Yearl Turnover 2019-2023 73%  3Year1 Turnover 2021-2023 46%  2Yearl Turnover 2022-2023 38%  -Fulll Timep positions Turn Over  Fullt time positions -Turnover  Fullt time positions Turnover  SHERIFFS OFFICETURNOVER    28  ELECTRONIC MONITORING FIVE YEAR SAVINGS  Jail Dayss Saved Jail Costs Saved EOMPFee Collected  EOMPCost Recovery Housing $44,805.00 $95,624.00 $79,888.00 $56,100.00 $65,796.00 $342,213.00  Salaries $72,351.00 $137,958.00 $139,060.00 $140,027.00 $157,617.00 $647,013.00  2019 2020 2021 2022 2023 Total  6964 12829 10450 18097 21231 69571  $348,350.00 $641,450.00 $522,500.00 $904,850.00 $1.061.550.00 $3,478,700.00  $6,617.00 $25,266.00 $10,199.00 $21,518.00 $24.600.00 $88,200.00  $3,675.00 $144,850.00 $83,510.00 $254,275.00 $291.456.00 $777,756.00 Savings byYear $234,136.00 $288,284.00 $230,241.00 $475,966.00 $571.281.00 $1,799,908.00  2019 2020 2021 2022 2023  Jail Cost Saved+ + EOMPE Fee Collected- EOMP Cost- Recovery Housing- Salaries-  DETENTION (SHIFT STAFFING  DETENTION SHIFT STAFFING  ASHIFT- DAYS  BS SHIFT DAYS  Rank Sergeant Corporal Detention Officer Detention Officer Detention Officer Detention Officer Detention Officer FMLA Detention Officer (M) vacant  EmployerNumber Longevity Rank  Employee. Number Longevity  10115 6676 1387 3038 6296 3263 10157 3023  Sergeant 3 Corporal 24 Detention Officer 3 7 0.06 11 Trainee o FMLA Detention Officer DOCC Detention Officer DOCC Trainee (F)vacant (M)vacant 15 Sergeant 6 Corporal 14 Detention Officer 4 Detention Officer 1 Detention Officer. 0.8 o DOCC Detention Officer 0 (M) vacant (M) vacant  6217 6414 1728  8 5 18  10262 10314! 10469! 0.03 6206 6635 6056 10225 10313 10452 0.04  ASHIFT: NIGHTS  BS SHIFT NIGHTS  Rank Sergeant Corporal Detention Officer Detention Officer Detention Officer Detention Officer (F) vacant (M) vacant  EmployceNumber Longevity Rank  Emplovee Number Longevity  1922 6323 1936 6503 10206 10392  9: 3 11 1  0  DETENTION SHIFT STAFFINGI  LONGEVITY 5) Years  LONGEVITY 2Years  Greater thans 51 years Less than  Greater than years    29  SHERIFF (PATROL OMSION  PATROL SHIFT STAFFING  SHIFTA- DAY (12 HOUR)  SHIFT B- DAY (12 HOUR) Employee Number  Ronk Lieutenant Sergeant Deputy Sheriff Deputy Sheriff Deputy Sheriff FMLA Deputy Sheriff Vacant Rank Lieutenant Deputy Sheriff Deputy Sheriff Deputy Sheriff Deputy Sheriff FMLA Sergeant  Employee Number Longevity Rank  Longevity 6294 7.7 6548 4.2 6624 3.7 10065 2.5 10411 0.6 10489 0.1 0.1 Longevity 6355 6.6 6461 5.1 10271 1.2 10317 1.1 10341 0.9 10453 0.3  6030 12.43 6342 3.5 6703 6726 2.6 10147 1.8 6674  Lieutenant Sergeant 3 Deputy Sheriff Deputy Sheriff Deputy Sheriff 3 Trainee 0 Trainee Lieutenant Sergeant Deputy Sheriff Deputy Sheriff Deputy Sheriff  SHIFTA NIGHT (12 HOUR)  SHIFT B- NIGHT (12 HOUR) Emploxee-Number  Employee Number Longevity Rank  6452 5.2 6633 3.7 10087 2.4 Deputy Sheriff 10189 1.7 3625 0.5 3252 10.1  SHERIFF (PATROL OMISIONI  LONGEVITY 5Years  LONGEVITY 2 Years  20  Greater thenSyears lessthenSyears  Greater then: 2vears lessthenZyears  CARTERET COMMUNITY COLLEGE PRESENTATION Dr. Traci Mancini stated we kicked off a year of celebrating and fundraising. We are focused on the needs of this community. For example, our Nursing program went from 50 to 100 allowed nursing students. In the process of expanding we have now been reaffirmed by state accreditation. We received $6M from the state legislature for our trades programs. The Community College also received $9.3M for a workforce center. Beaufort Wine and Food donated a food truck trailer to add a food truck program at our culinary center. We have received over $1M to have a dental assistant program. Local dentists came to us asking for this curriculum. New programs like commercial fishing, barbering, etc. will be starting soon. Enrollment growth is up 4% from last spring. Fall- to-Fall retention rate is 77% which is much higher than the average of 63% around the  state.    30  Dr. Mancini stated they received a clean audit for the foundation and the college. 60% ofCCC's budget is from the state. 13% is from the County. The rest is mostly Pell grant funding. The County funds support 22 staff members on campus. Expenses this year have been for HVAC repairs, brick work, and updated campus signage. We have also had some keyless entry installed on buildings. Locks work on our class schedule. Wayne West Building has renovations currently underway. By the end of the summer our carry over funds will be exhausted. Deferred maintenance is related to HVAC and mechanical. We are asking for additional funds from last fiscal year because our electric bill has increased by 20%. We want to give 22 staff members paid with County funds a 3% pay raise. We are asking for a $295K increase in budget from the County.  *  - PNP  Start Here- Learn Local. Move Forward.  An Update on Carteret Communtty College Carteret County Board of Commissioners Annual Seminar,  4, 2024  CARTERET 4  e  CARTERET coLi  60th Anniversary Events  KickolfCelebration: on July 11,2024: unveiled Krakenmascot Every Seat Matters Campaign, cuminatingin Diamond Bashon Joslyn Hall renovations began inJanuary 2024: will be completed  September 29, 2023 by May2024  a as  60" Graduation: on May 10.2024  Mission  Carteret Community College serves and empowers community our: by providing students and high-quality coastal lifelong education, enrichment workforce in training. an Innovative and and inclusive leaming environment. eos 5  CARTERET COMMUNITY COLLEGE    31  Military-Friendly GOLD School (2024-2025) and Military Business Nursing Program 50 * 100 Students; ACEN and NCBON 10096 First-time Pass Rates in ADN, RAD, RCP, EMS Golden LEAF Grant for Health Sciences Sim Center 2024 2029 Center of Excellence for Domestic Maritime Workforce Training and Education (COE) $6 Million Allocations in FY 2024 - 2025 State Budget for Workforce Center for Construction and Transportation Technology Ambulance, Food Trailer, and Mobile Unit Donations Foundation debt-free for first time since 1990s and raised over $1.6 million in scholarship and program endowments in: 2023 New Academies and Programs (Dental Assisting 1, Surgical Technologies. Barbering. Commercial Fishing: Living Shoreline: Re-entry: Registered. Apprenticeships) First Responder/Pubilic Safety enhancements Enroliment and Other Benohmarks Curriculum. increase of 49+ in Spring 2024 Continuing Education flat but more to come Basic, Skills increase of 13% CCP (Ouakenrolimeno: -27 29% of Curriculum Enroliment. or 425 - 435 students Fall-to-Fall Retention Rate  Center Accreditations  CARTERET 2023-2024 Highlights  CARTERET Serving and Empowering  CARTERET  First-time, Full-time Students Fall-to-Fall Retention Rates  and  Serving Empowering  20K  verg  BUDGET BV FUNDING SOURCE FY2024  CARTERET MVMIZ SRUAARI  institstional $7,402,760 25.6%4  County Operating $3,361,000 11.0%6  County Capital $800,000 2.8%6  State Equipment & Library Resources $596,496 2.1%  Total Budget: $28,862,713  $16,902,457 58.656    32  Capital improvements in Michael. J. Smith/Civic Center Roof Replacement Public Safety Training Facility completed Two 10-ton split unit replacements for Smith Building 15-ton split unit replacement for Howard Buitding 25-ton split condenser replacement for NC MARTEC Marquee sign brickwork and updated campus wayfinding Protection shelter for Rhue Building Storm protection shutters for Wayne West Building Repairs to Walking Trail Repairs to Automotive Building - storm damage Asbestos analysis for McGee and Lockhart buildings Campus West Safety upgrades - keyless locks for Bryant and Wayne Buildings Exterior door replacements for Bryant Building Simulation Lab Renovation for Wayne West (Phases land II) Custodial Equipment Capital improvements in 2023-2024 In Progress (will complete by June 30, 2024) Wayne West Building HVAC moisture and corrosion renovation Move and set up Modular Classroom Units (Newport Corrections Center and other locations) Sidewalk repairs across campus In Progress (will complete in early FY: 2025) McGee mechanical and domestic water piping replacement (emergency need) Simulation Lab Renovation for Wayne West Building (Phase II) On the Horizon: Capital improvements in 2024-2025 Workforce Center for Construction and Transportation Technology Complete Health Sciences Simulation Center McGee One-Door Renovations (1st Floor) Digital Locking System for McGee Building-+ Deferred Maintenance  2023-2024 Completed:  CARTERET  COLLEGE  CARTERET  cOL  CARTERET  FY. 2025 Budget Considerations Currently $527,000 in deferred maintenance; proposing an increase of $30,000 to begin addressing needs over next Utility costs have increased - 21% increase in electricity costs in 2024 compared to comparable months in 2023. State Health Plan rate increasing by 7%, equal to $538 per College will deliver 3% pay increases to County-funded employees to match Legislature's funding for State Overall, the College anticipates asking for approximately $295,000 increase from last year -= or 7% more in operating  three years.  full-time employee per year. employees in July 2024. and capital support.    33  CARTERET COUNTY SCHOOL SYSTEM PRESENTATION Richie Paylor, Superintendent, introduced the school board and interim finance officer. He stated we are proud to have no low performing schools. He also gave a brief summary of awards and accomplishments and a summary of completed bond projects. The main topic up for discussion is the upcoming budget considerations. Our benefit costs will remain at 25.02%. However, our health insurance contribution is projected to be a $500+ increase per employee. We used $1.6M of our fund balance to balance the budget this year. The biggest driver of that was the mandated $15/hr. minimum requirement from the State. This will leave about $700K in the fund balance. ESSER positions will go away after this year. Those positions include 3 social studies teachers and 1.5 English learner teachers, and 1.5 that work with exceptional children. These The new interim financial officer and the superintendent built the upcoming budget from the ground up. These are good numbers. Transportation costs are going up. Maintenance and utilities are going up. At Croatan High School alone we will pay $75K Chairman Farrington stated the commissioners have funded the school system well. You have done a lot with these funds. Mr. Paylor stated we don't ask for things that we don't need but only to stay a prime system. Commissioner Chadwick said it looked like the schools are asking for a 7% increase plus funding for essential teachers. This equates to a $2M increase from last fiscal year. Mr. Paylor replied that the School Mr. Burns stated the county school budget has grown greatly but the state funding has not done the same. Since 2019 we have increased by almost $1M a year. Rep. Cairns was in attendance, SO the Board brought state funding for schools to her  are critical positions that will lose funding.  more for utilities (Gas).  Board has spent the time to rebuild this budget.  attention.  Carteret County  Board of Commissioners  Seminar March 4, 2024  CARTERET COUNTY  Engage EAeEmpank frodcérisland toCedar Point  PUSLIC  SYSTE    34  CARTERET COUNTY Through local support... accountability model.  SYSTEM ACCOMPLISHMENTS  CCPS continued to have no low performing schools using thestate CCPS is ranked fifth out of NC school systems for College and Career Readiness Proficiency based on all summative test scores. CCPS is ranked sixth out of NC schoolsystems for Grade Level Proficiency CCPS high schools ranked third out of NC high schools for ACT scores. Out of the 115 public school systems in the state, CCPS high schools ranked FIRST. on ACT Workkeys career and college readiness measure.  based on all summative test scores.  CAI RTFRET GOUNTY SYSTEM  ACCOMPLISHMENTS  Every school in the Carteret County Public School system earned: a third-consecutiye Purple Star Award for support of mltaryiconnected families, and the district received the District Purple Star distinction  PURPLE STAR AWARD  CARGLINS Punie SCIDOIS  Bond Projects  Update  CARTERET COUNTY ralte OLTS COMPLEED  BOND PROJECTS UPDATE  Interior door replacement at AES, HIES, &WCHS Allsites installed VolP intercom systems Cafeteria & primary building roof replacement Securitywallsto enclose campuses at NES,ECHS, BMS, - SES/DEMS, MCES, MCMS Paving projects: BCMS, MCPS, MCES  atNES    35  CARTERET 4 COUNTY COMPIETED Addition at Carteret Pre-Schoo/Center Classroomadditon atCroatan HighSchool  BOND PROJECTS UPDATE  tin  L  CARTERET COUNTY : District-wide door access control project Vendor on-site pulling cable for Phase 1 Phase 1: Front doors tobe equippediwith videosttionstharte intoVolPadmin, phone erenstogveremere viceolaucioang unlockcapablities Phase2All remainingdoors quppedwtmenton hardwareand/or accesscontrol ercwarelreadursne PINpad)  BOND PROJECTS UPDATE  CARTERET GOUNTY COMPIENED Cafeteria Expansion at BCMS CompletedJanuary, 2024 T AAKDPADSRSS CassroomAceNionat BCMS Projectedcompletion.Huly2024  BOND PROJECTS UPDATE  :  Log -  E    36  CARTERET A COUNTY r T WORKI INI PRDGRESS WCHS  HA  BOND  PROJECTS UPDATE  NEWROTCISCIENCE WING  NEWBAND ROOM  Classroom Addition Cafeteria Renovation Band RoomAddition HVAC Renovation Projected Completion August 2025  COMPLETE  NEWFOODSLAB NEWLOCKERS, ANDRESTROOMS  - S  RENOVATE FOR GENERALO CLASSROOMS  RENOVATE CAFETERIA!  Career & College  Readiness  CARTERET COUNTY  CAREER & COLLEGE READINESS  Career Readiness Engaging Sinteractive: tesl-drives. Academic Planning Seamiess coursep planningau tracking. College Readiness Sumaminedesoicalion- applications. School/District Leadership Invalusblet oreastingsinagha Work-Basedi Learning Work- based leamingwinoutt borders. Micro-Credentials Computery busederedentiing  Major Clarity    37  CARTERET COUNTY  CAREER & COLLEGE READINESS  School Year 22-23 Industry Credentials  by CTE Students  National Safe Tractor: and Machinery Operation  EverFi Venture ServSafe. Handler Food NCCER- Core  iCEV- Career Preparedness AHLEI Guest Services  O5HA-Health Care AWS Welding 05HA-Conatruction OVER  Stop the Bleed  First Aid  NCCER- Carpentry  05HA-Agricuture BLS- Basic Life Support ServSafe Manager NCCER- Masonry  CARTERET COUNTY  CAREER & COLLEGE READINESS  BUSINESE 85 Captain's' Table Carteret County EMS Carteret County Humane Society Carteret Family Dentistry Carteret Health Care Carteret Medical Group Chick-FII-A Coastal Current Boutique Coastline! Signature Homes Core Sound Museum Cornerstone Church Crab Shack Crystal Coast Vounglife Custom) YachtsuLC  a T E R ABS SurfShop ACE Hardware Emerald! Isle Amos Mosquitos Augies Woodcrafts Bamboo Acian! House Bellal Hair Studio Black's Tire BLUsail Golitz Studios Bogue Banks Realty Breakthrough! PT Broad Creek Pharmacy Can! Do Construction  ERVIDUER  Dunes Club EIRealty FishHut Floyd's 1921 Friendly Market Fusion Works Great Clips Business Mrk. Hancock Law Fimm Heritage Cabinet Horse Pen Ranch Impact Strength and Fitness Kurtis Chevrolet  RCU  Carteret County Public! Schools Mexicanal Tacos and Tequila  Bridges Professionall Park Animall Hospital Crystal Coast Pregnancy Center Jerry Davis Construction Co  CARTERET A COUNTY  CAREER & COLLEGE READINESS  35 Prime Bistro Promiseland Market Publix Queen Anne's Revenge Rise andShine Nutritiion ROSS Sagebrush Steakhouse Salon Techniques Scoggins Construction Sea and Play Seaside Sensations Shampooches Sol Bowis SouthernSalt Spolled Rotten! Salon  SERVISER  Sports Center Performance: Zone Sunset Slush Sweet Spot Tesseract The Spot Grill Tiller School UPSS Store Vision Horticulture Warbrittion! Paint Contracting Ward & Smith Wheatly Bro Collison Wild Arrow Collective Zaxby's  EYCY  ATTRTETETES  Live Oak' Veterinary Hospital Lookout Ford Mac Daddys Marsh's Surfs Shop Mechworks Mitchell Village Animal Hospital Moore's Orthopedic ands Sports Medicine Morehead City CountryClub Musashi O'Brien Construction Preformance: Zone  Silverline Jewelry Wester Carteret Fire Department    38  CARTERET * COUNTY CAREER & COLLEGE READINESS  Career & College Promise Continue to grow our partnership with Carteret Community College Increase student awareness of dual-enrollment  CARTERET  opportunities  : Students have two dual-enrollment options CCP College Transfer Pathway CCP Career & Technical Ed Pathway  CARTERET COUNTY  CARTERET * COUNTY CAREER & COLLEGE READINESS  Careers and Partnerships in Education Initiative to ensure every student has a clear goal for post- graduation Enroll in college Enlistin military Employment Purpose Process Projection  Careers and CAPE Partnerships in Education Fnovour AVEE ar mes Cape  CTE  CARTERET COUNTY CAREER & COLLEGE READINESS  CCPS 7 interns CHC-2 26 interns Kurtis Chevrolet & Lookout Ford -8 Newly formed partnerships with Beaufort Hotel BeaufortWine and Food Parker Offshore  PARTNERSHIPS CAPE BAE and in tinn CAPE Find Your Future at' the Cape  Budget  Considerations    39  CARTERET COUNTY  STATE BENEFIT COSTS  Employer Retirement Contribution  Employer Health Insurance Contribution  27.00% 26.00% 25.00% 24.00% 23.00% 22.00% 21.00% 20.00% 19.00% 18.00%  $8,500 25.02% $8,000 $7,500 $7,000 $6,500 $6,000  $8,095  1177717  11/7777  CARTERET COUNTY  FUND BALANCE  Five Year Fund Balance  5.000,000 4,000,000 3,000.000 2,000.000 1.000.000 (1.000.000) (2,000,000) (1,259,873) (3.000.000)  4,479,849 1,670,391  2.640.025  2,818,189  1,673,100  1,859.478 1,100.000  1.051,989  (1.716,464) 2020-2021 Available Fund Balance  I--CoVD'ears-- 2019-2020  2021-2022  2022-2023 Fund Balance Used  2023-2024  CARTERET COUNTY ESSER CRITICAL PERSONNEL  ESSER Funded Teaching Positions to maintain current level of classroom support 3 social studies teachers WCHS, CHS, BAS English Learner Teacher (EL) Fastest Growing Subgroup EC: teachers NES & ECHS (NES 1 & ECHS.5)  #ofCurrent Positions  3 1.5 1.5    40  CARTERET COUNTY Current ESSER positions new due to COVID District Instructional Coaches At-Risk Coordinators (teacher scale) nstructiona/leacher Assistants Digital Teaching and Learning Coaches Technology Technician Mental Health Technicians Behavior Support- School Counselor Therapist Social Worker Nurses  ESSER UPDATE  3 34 1.75 0.725 2  ESSER Funded new positions for Mental/Bchavior Student Support  CARTERET - COUNTY  OTHER UNFUNDED NEEDS  Positions Athletic Trainers  Assistant Principal at Croatan High School Elementary Behavior Support Classroom AssistantFacility Support Operations Director  CARTERET COUNTY Impact Item  2024-2025 ANTICIPATED INCREASE IN EXPENSES  Cost Estimate 525,000+ 148,000+ 54,000+ 288,000-+ 125,000+ 151,000+ 94,000+ 68,000+ 125,000+ 215,000+ (5,881) (28,850) (48,610)  Certified and Non-Certified Salary Increase 3% and Adjustments Supplement Increase Due to Salary Increase FICA Increase Due to Salary and Supplement Increase Retirement Increase Due to Salary and Supplement Increase Health Insurance Premium Increase to $8,095 Increase in Custodial Services Contract Increase in Transportation: Increase in Charter Schools Increase in Maintenance Increase in Utilities Increase in Supplies and Software Increase in Contracted Services Increase in Staff Development  The Commissioners closed by thanking all of the presenters and Rep. Cairns for their time and for the information they provided. Chairman Farrington stated this was a good  start to budget discussions. The meeting adjourned at 2:15PM.  B7 Farrington, Chairman  fan Lori Turner, Clerk  B