May 29, 2024 Special Call Meeting  The Martin County Board of Commissioners met for a Special Called Meeting regarding Open and Closed Session matters in the Commissioners Board Room of the Martin County Those attending the meeting were Chairman Dempsey Bond Jr., Vice Chair Emily Biggs, Commissioner Joe R. Ayers, Commissioner Ronnie Smith, Commissioner David "Skip" Gurganus, Interim County Manager / County Attorney Benjamin R. Eisner, Clerk to the Board  Governmental Center, 305 East Main Street, Williamston, N.C.  Julia Rease, Finance Officer Cindy Ange.  Others in Attendance: Mayor of Bear Grass Charlotte Griffin  Chairman Bond Jr. called the meeting to order at 6:00 p.m. Commissioner Biggs led the Pledge of Allegiance. Commissioner Gurganus provided the invocation. Chairman Bond Jr. extended a  welcome to all in attendance. AGENDA APPROVAL  Commissioner Gurganus made the Motion to Approve the agenda, with a Second by Vice Chair  Biggs. The Motion was Carried unanimously (5-0).  CLOSED SESSION(S) - 1. N.C.G.S. 143-318.11(a) (3) Attorney/Client Privilege Pre-65 At: 6:04 p.m. Vice Chair Biggs made the Motion tol Enter Closed Esio-L-NCGSI8 318.11(a) (3) Attorney/Client Privilege Pre-65 Litigation and 2.N.C.G.S. $143-318.11(a) (6) Personnel, with a Second by Commissioner Gurganus. The Motion was Carried unanimously (5- At: 6:32p.m. Commissioner Gurganus made the Motion tol Enter Closed Sesion(9-L.N.C.GS. 831100AtmyChs Privilege Pre-65 Litigation and 2.N.C.G.S. $143-318.11()(6) Personnel, with a Second by Commissioner Ayers. The Motion was Carried unanimously (5-0).  Litigation and 2.N.C.G.S. $143-318.11()(6) Personnel  0).  OPEN SESSION  Presentation of the County Manager's Recommended Fiscal Year 2024-2025 Budget Interim County Manager Eisner presented the proposed budget as follows:  "Commissioners:  Please accept this budget message in presentation and recommendation oft the Interim County  1    Manager's proposed budget for fiscal year 2024-2025 ("FY 2024-2025 Budget" or "Budget"). The FY 2024-2025 Budget totals $38,007,792.00 for all County fund operations, capital  improvements, and debt service. Statutory Requirements  North Carolina General Statute S 159-11(b) requires the County Manager, as the budget officer, tos submit aj proposed budget and budget message to the governing body by June 1st ofe each year. On the same day that the budget is presented to the governing body, thel budget officer shall filea copy ofiti in the office oft the clerk forj public inspection and schedule aj public hearing. This public hearing has been scheduled for the regularly-scheduled Board of Commissioners Meeting on. June 12, 2024 at 7:00 p.m. North Carolina General Statute $ 159-13 specifies that not earlier than 10 days aftert the budget is presented to the governing body and not later than July Ist, the governing body shall adopt a budget ordinance. However, pursuant to North Carolina General Statute S 159- 16, "Ii]n the case adoption of the budget ordinance is delayed until after July 1, the governing board shall make interim appropriations for thej purpose of paying salaries, debts service payments, and the usual ordinary expenses of the local government or public authority for the interval between the beginning oft the budget year and the adoption of the budget ordinance.".  Budget Development Process  Departments and County Agencies met with the Interim County Manager and the Finance Officer on March 5th, 6th, and 13th for submittal and discussion of budget requests. Presentations to the Board of Commissioners of those requests were made on March 20th. Outside agencies seeking funding from the County delivered requests via mail and were afforded an opportunity to for presentations of their requests to the Board of Commissioners on March 21st. On May 6th, the Board of Commissioners held a joint budget meeting with the Board of Education where Dr. Michelle White presented the budget request on behalfofthe Board of] Education.  General Fund, Enterprise Funds and Other Funds  The Budget is composed of revenues and expenditures for several funds, including the General Fund, the Water District (Enterprise) Funds and Other Funds. The General Fund accounts for resources traditionally associated with government that are not required legally or by sound financial management to be accounted for in other funds. Enterprise funds consist of a grouping of activities whose expenditures are wholly or partially offset by revenues collected from consumers in form of fees and charges. Enterprise funds are traditionally run more "like a  business." Revaluation  North Carolina General Statute $ 105-274 states all real and personal property located within its jurisdiction shall be subject to taxation unless it is otherwise exempted or excluded from taxation by law. North Carolina General Statute $ 105-286 requires each county to conduct a General Reappraisal of all real property at least once every eight years. The primary purpose of any revaluation program is to provide equalization among all property Owners, as well as among all classes of property. Martin County's most recent revaluation was concluded as of. Jan. 1, 2017.  2    The next revaluation should be completed by January 1, 2025, and inj process as oft the writing of this budget message. Since property taxes are based on value, it is important to have all property valued periodically on a uniform basis, using a modern system of valuation. Property values change with time. Some values go up, some go down, and others remain static. Appraisals must be updated, or inequities in tax distribution will result. Reappraisals cover all residential and commercial land and structures, which includes homes, apartments, condominiums, office buildings, stores and warehouses. Reappraisals do not include what is classified as individual personal property, such as vehicles, boats, airplanes, and business equipment. These property types North Carolina General Statute $ 105-283 requires appraisals to be made of each property's "true value in money" or "fair market value", which is the most probable price a property would bring ina a competitive and open market. Property values for a reappraisal are determined by comparing what similar properties are selling for, what it would cost to replace one' s property, the potential income or highest and best use of one's property, as well as many other factors that may affect value. During the revaluation, professional appraisers analyze data by reviewing of properties and establish the estimated fair market value (i.e., the price a willing seller would receive from a willing  are valued annually.  buyer).  FY2024-2025 Budget Overview  Tax Rate: The Budget is based on maintenance of the current tax rate of $0.81 per $100 Revenues: The County is anticipating revenues totaling $38,007,792, which includes ad valorem tax collection of$16,939.106, sales tax collection of $5,999,463, and use of fund Raises: The Budget includes a two percent (2%) cost of living adjustment (COLA) for  valuation, plus the applicable fire district tax.  balance of $3,394,503. employees.  Staffing: The budget includes funding for no new, permanent positions.  Health Insurance: The cost of the State Health Plan for employee health insurance is Retirement Expenses: The cost of the Local Government Retirement System will cost an Board of Education: The Board of Education requested $8,225,495 in Current Expenses and $6,763,294 in Capital Outlay. Proposed in the Budget is $6,242,400 in Current Expenses and $666,060 in Capital Outlay, which amounts to a 2% increase in what was  anticipated remain the same for the coming year. extra $144,898 in 2024-25, which is a 0.75% increase.  included in the budget ordinance from FY 2023-2024.  3    Martin Community College: Martin Community College requested $1,150,950i in Current Expenses and $60,000 in Capital Outlay. Proposed in the Budget is $1,098,664 in Current Expenses and $61,200 in Capital Outlay, which amounts to a 2% increase in what was Jail: The 2023-2024 funding level for the Bertie-Martin Regional Jail of $1,346,486 will Youth Detention: This Budget increases the line item for youth detention from $25,0001 to Drug Recovery Court: This Budget increases the line item for Drug Recovery Court from Health Department: Martin-ymel-Washington District Health made secondary a proposal of two potential requests, one with an 8% increase ($477,807) and one with a9% increase ($537,532). The Budget includes $422,855 for MTW District Health, which is Mental Health: This Budget includes maintenance of the current funding of $48,462 for Library: This Budget maintains $109,402 for the Beaufor-Hyde-Marin (BHM) Regional Economic Development: This Budget appropriates a contribution of $160,788 to Martin CADA: The Choanoke Area Development Agency (CADA) is the Community Action Agency and Community Services Block Grant (CSBG) administrator serving Martin County. Its mission is to assist low-income citizens achieve self-sufficiency. CADA requested $30,000, which represents an increase from the previous year requestappropriation of $27,000.00. This Budget increases the line item for CADA from Rescue Squads: In years prior to 2023-2024, the County utilized a funding model which included a flat funding level, plus additional amounts per call and additional amounts for advanced levels of service. During 2023-2024, that model was abandoned and then upon the filing of the Chapter 7 case of Williamston Hospital Corporation, the County made significant additional appropriations totaling $1,358,190. This Budget includes  included in the budget ordinance from FY 2023-2024.  ber maintained in the Budget.  $60,000.  $10,000 to $25,000.  equal to amounts that were initially requested.  Trillium. Library  County Economic Development Corporation.  $27,000 to $30,000.  maintenance oft the current funding of $1,358,190.  4    Capital Outlay: Major Capital Outlay expenses include purchase of a new backhoe for the Landfill in the amount of $140,000, a locater for use by the Water Department in the amount of $11,000, and remaining balance ofr new radios for Sheriff's Department in the Use of Savings: The budget includes al Fund Balance appropriation of $3,394,503. Useo of Savings: Fund Balance and Pre-payment ofLease for Martin General Hospital  amount of $94,000.00  Fund. Balance  The County's savings consists oft the Fund Balance from the General Fund, as well as the Hospital Fund. The state requires a minimum of 8% in the Fund Balance for cash flow purposes. The 8% Fund Balance requirement is the minimum amount needed for cash flow. Martin County's main source of revenue is the property tax, which is mostly collected between November and January. The County needs its cash reserves to pay for bills in July, August, September, and October. Additionally, the county needs to maintain a certain amount of reserves for unforeseen events, AJ Fund Balance Policy was established on April 10, 2013 and isi intended to address the needs of Martin County in the event of unanticipated and unavoidable occurrences, which could adversely affect the financial condition of the county. This policy ensures the county maintains adequate fund balance and reserves in the county's general fund balance to provide sufficient cash flow for daily financial needs, provide funds for unforeseen expenditures, and offset significant economic downturns or revenue shortfalls. The Board of Commissioners adopted a policy I goal of A year over year balance for the previous the ten years from 2014 through 2023 is as follows:  such as hurricanes.  maintaining a Fund Balance of20%.  YEAR 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014  TOTAL $19,456,612 $16,555,104 $14,836,484 $11,849,729 $11,510,902 $11,994,271 $11,972,890 $12,033,819 $10,599,984 $8,648,701  Prepayment ofLease for Martin General Hospital  Those funds held as the Hospital Fund consists ofl lease payments paid in advance for a 30-year lease for the Martin General Hospital building, which was entered into in 1998. 1/30th of these  5    funds are considered "earned" for each year ofa actual use ofthe hospital building. However, with the filing of the Chapter 7 bankruptcy case by Williamston Hospital Corporation, the Chapter 7 Trustee has rejected the lease with the County. Determinations as to remainder amounts of the advance lease payments will be made through the Chapter 7 case which remains open and ongoing A year over year balance for the previous the ten years from 2014 through 2023 is as follows:  ini the United States Bankruptcy Court for the District ofl Delaware.  YEAR TOTAL EARNED AVAILABLE  2023 2022 2021 2020 2019 2018 2017 2016 2015 2014  $12,097,220 $11,831,387 $11,824,522 $12,819,154 $12,729,912 $13,546,770 $12,411,798 $12,380,235 $13,115,690 $14,806,697  $9,122,226 $8,29,726 $7,716,194 $8,144,159 $7,488,250 $7,738,441 $6,036,802 $5,438,572 $5,607,359 $6,731,700  Looking Ahead  A number ofissues with potential budget implications are in the foreseeable future for Martin 1.The closure ofl Martin General Hospital, through the Chapter 7 bankruptcy case of Williamston Hospital Corporation, placed current and future healthcare in Martin County at a critical juncture. The County is undertaking the process to understand what may be required of the Martin General Hospital building in order for a provider to open in its current state or what alternatives may be available. Understanding what costs if any may be associated, may have 2. Martin County continues to struggle with the debt service from Martin County Water Districts #1 and #2, as well as a small customer base. This situation is exacerbated by the debt service and operational costs of the Martin County Regional Water and Sewer Authority (MCRWASA). Martin County is aj partner in MCRWASA, and Martin County Water Districts 3. The budget relies significantly on the use of savings to balance the budget. This situation needs to be continuously monitored over the next few years and appropriately managed SO Martin County does not grow overly reliant on savings. Such aj practice is not sustainable. 4. In order to retain and recruit high performing employees, Martin County will need to keep an eye on the market rate ofs salaries, across all County positions, in nearby. jurisdictions.  County. These issues include the following:  budget implications.  #1 and #2 purchase treated water on a wholesale basis from MCRWASA.  6    While Martin County has some challenges, a number of positive factors also provide some 1. In winter/spring 2024, the Board of Commissioners approved the use of up to $900,000.00 in ARPA funds towards internet/broadband grants, split between GREAT and CAB grants. These grants project to bring much needed internetbroadband to areas of Martin County that are not 2. Numerous improvements funded through grants are being made to the Martin County Airport (MCZ), which will assist in bringing aviation, related business and tourism to the County. 3. The County continues to work diligently towards a request for proposal related to the Martin General Hospital building. While the closure of the hospital has created great uncertainty, it also created an opportunity to reshape and rethink the future ofhealthcare in Martin County. Since March 2022, Ih have enjoyed working with the Board of Commissioners, County staff, and citizens as the County Attorney, but it has been a truly great honor to have served as the Interim County Manger since November 1, 2023. This tenure has been made easier by the fact that the County is fortunate tol have a dedicated staff, diligent citizenry, and continued leadership from the Board of Commissioners. I would like to offer special thanks to Finance Officer Cindy Ange in what is her final budget preparation cycle prior tol her retirement at the end oft the fiscal year." Interim County Manager Eisner announced that this was the last budget cycle for Finance Officer Cindy Ange as she was retiring and made comments in regards to her service, assistance with the finances ofthe County, and helping him learn about the finances oft the County as well. Interim County Manager Eisner stated that ifthere were any questions and or comments regarding Commissioner Gurganus thanked Interim County Manager Eisner and Finance Officer Cindy Ange as well as the rest ofthe County staffi for services provided year after year. Commissioner Ayers stated that he had comments and questions. Commissioner Ayers thanked Interim County Manager Eisner and Finance Officer Ange work on the budget. Commissioner Ayers commented that Finance Officer Ange had provided services for a long time, did an awesome job, and was a good steward of taxpayer monies. Commissioner Ayers reported that in the past, Board members were allowed to review the budget after it had been presented and bring any comments, questions, and or possible changes to the next meeting. Commissioner Ayers asked ifthis was acceptable and Interim County Manager Eisner agreed. Commissioner Ayers stated that there was an ongoing issue that came upi recently and asked staffkeep the Bargain Shoppe in mind. Commissioner Ayers stated that the County used to receive revenue from the Bargain Shoppe, but itl had been closed for a while due to a leaking roof. Commissioner Ayers mentioned speaking with Building and Grounds Director Justin Harrison regarding renovations, which would cost around $25,000 to $30,000. Commissioner Ayers reported that this estimate was not included in the  optimism for the future:  currently being served.  Conclusion  the proposed budget to contact him up until the. June 12th meeting.  7    budget, but foritt tol be considered. Commissioner Ayers discussed the Adult & Aging employees' inability to operate in the building or conduct business because of the leaking roof and the Commissioner Smith stated that this was Finance Officer Ange's last budget process, thanked her for the work conducted in the process, and being a good steward of taxpayer monies. Commissioner Smith thanked Interim County Manager for his efforts in putting the budget Commissioner Biggs thanked Finance Officer Ange for her services and managing the finances of Chairman Bond Jr. thanked Finance Officer Ange for all of her efforts, it was a pleasure serving with her on various Boards, and thanked her for managing the finances of the various Boards. Chairman Bond Jr. thanked Interim County Manager Eisner for his efforts on the budget and he  importance of upkeep on County owned buildings.  together. the County.  appreciated him for returning his phone calls. No further business was discussed. ADJOURNMENT  At: 7:04 p.m. Commissioner Smith made the Motion to Adjourn, with a Second by Commissioner  Ayers. The Motion was Carried unanimously (5-0).  Dempsey R Martin Pa Clerk to the Board  Jr., T4  County Board ofCommissioners  .Bona  Rease  8