Scotland County Board of Commissioners reconvened meeting June 11, 2024, Edwin Commissioners in attendance: Chair Ivey, Commissioners Alford, Frizzell, and Gibson. Vice Chair Gibson in at approximately 9:12 a.m. Commissioners not present: Darwin Williams and Clarence McPhatter, II. Staff in attendance: County Manager Snead, County Attorney Ed Johnston, Deputy to the Board Dorothy B. Tyson and several department heads. Media: Sandy  Morgan Center 517 Peden Street, Laurinburg, NC  Callan.  Call to Order and Approval of the Agenda was duly seconded by Commissioner Frizzell.  Chairman Ivey called the reconvened meeting to order and asked for a motion to approve the agenda. Motion was made by Commissioner Whit Gibson to approve the agenda. Motion  Paid Volunteer Calls  County Manager Snead stated that this item is back on the agenda due to questions regarding a decision being made, only discussions. As far as the Budget is concerned, funding is available in the Fire Budget. The Board's timing is not critical, you can make an approval for the proposal after the budget has passed as well. Discussion included two departments opting out, but can opt back in July and their reason for opting out is that they receive a state grant. It was stated that since this is not a budget issue, you are able to exclude whoever wants to be excluded. Also discussed was the fact that some departments would have more calls and others less, but each department would get $18,000.00 and whatever is not spent would go into operations. Ai report would have to be made, including the list of volunteers participating in each department, the exact number of calls for each person and monies to be paid. This is requested in an effort to increase the responses of volunteer fire foster to call and to give extra money to go into operational expenses. Due to more information being requested, Mr. Mac McMillan will be  invited to the next meeting on June 25, 2024. FY25Fee Schedule Changes  These are not the schedules for all of the County, but the changes requested from three departments, these being Health Department, Parks and Recreation and the Library. The changes were highlighted in yellow. The County Manager stated that ift they were okay with the changes,  then the schedules could be approved on June 25, 2024 along with the budget.  FY25 Budget Discussion (Summary Page Options attached)  Board informed that the only changes made were regarding the 401K, its match and the COLA. Chair Ivey and Commissioner W. Gibson asked what has happenedchanged since the last meeting. The County Manager informed them that the 401K Match has been put back in the budget, even though 401K is supplemental. The COLA has been decreased from 2% to 1%. Questions continued as to how changes can make us go from a $500,000 to $1,000,000.00 deficit. The Finance Director stated that lapse salaries, frozen can be contributors, but the personnel piece is still the same. She also stated another $500,000.00 has been added from the General Fund and that the Board gave a capo of$1,000,000.00 to be used from the General Fund.  1    Both Chair and Commissioner Frizzell stated that they recall the cap amount being $500,000.00. The Finance Director stated that with revenues, there is no other place to increase revenues. Chair Ivey mentioned that there may need to be another discussion regarding the City and 911. Discussion continued regarding 911 and City, possibly discuss this in closed session, the City's next meeting is June 18th, question as to whether the meeting is needed before and response was that City will need it for their budget process. Reminder that the County's Attorney is not present at the meeting. It is expressed by Chair Ivey and the Finance Director that they do not like the $1 million dollar deficit. Commissioner Frizzell states that reducing the employees 401K Discussion regarding the commitment to Scotland County School System. Question as to why we could not touch the $10 million for the school and the answer was because we committed this tot them. Commissioner Alford stated that we want to honor our commitment to them, but take care ofour employees as well. Also that he does not think that taking $250,000.00 would cripple them. Commissioner Frizzell agrees with Commissioner Alford and Commissioner Whit Gibson states that Commissioner knows how he feels, but it would take the whole Board to change the commitment. The difficulty in getting all seven Commissioners to attend the meeting was mentioned and Sheriff Kersey stated that they can be ordered to attend by the Chair. It was stated that only four commissioners are needed. Commissioner Alford stated that he has concern for the School System and their budget, but we are concerned for our people and that he would like to see them come and advocate. Chair Ivey was asked to contact the chair of the School Board, this being Chair R. Singletary. He also stated that the hardest part about this is to end up in mediation and the cost of mediation will blow the budget. Comm. Alford stated that he believes in mediation and Comm. Frizzell continues to agree with him. Regarding the budget, County Manager Snead reminded the Board that this is more than 401K and decreasing COLA. It will also result in increased workload due to freezing positions, the employees watching others receive adequate COLA and other benefits while the county is cutting theirs, no additional cars for the county, and there is also concern for the delivery of services to the citizens and how they will be affected. FD Hobbs reminded the Board that progression steps are out also. Chair Ivey stated that we are $4 million dollars more in salaries than we were a few years ago and the same staff. Commissioner W. Gibson interjected that there are not enough cuts to the budget to do all the things we do without raising taxes and that this is a tough decision. Comm. Frizzell does not want to see the General Fund balance down from approx. 14% to 11%, neither decreasing COLA and changing 401K. Chair Ivey questioned how this budget received today has a deficit of $1 million dollars compared to the one received on June 3rd. FD Hobss replied the difference is the increase of $500,000.00 from the Fund Balance to $1 million dollars and the Canteen Funds. Chair Ivey stated that an email has been received from LGC about audit and finances, and that they would be sending someone down. County Manager Snead stated that this is common when there are findings. Question as to what 2-3, 4-5 things can be done to balance the budget and keep property taxes at $.99? FD replied, the cuts which are being presented and County Manager Snead stated that what they are presenting is a balanced Budget. Comm. Frizzell stated that we are all aware of what COVID has done to the County and to each one of us individually, but it looks like we are putting a bandaid on and will we be doing the same thing next year. ALso that he does not see any way out of this without raising taxes, balanced budget this year, what about the new year. Sale tax increase proposal was discussed. The results will be effective next year, not this year, it cannot be % cents, because the law only allows our county to do a Y4 cents  does not sit well with him.  2    increase. Concerning the General Fund Balance, Comm. W. Gibson stated that he is not in favor oft taking more than what is needed. Also stating that the county was below 8% several times and that we've worked well to get it back up. Ifthe GF is going below 15%, we must have a plan to make this amount up, and we will have a revaluation, but it will be several years before it will help us. Chair Ivey confirmed 2026-2027 and Tax Assessor M. Butler stated that it would be 2027. Comm. W. Gibson commented that COVID caused lots of disruptions and knew that taking $1 million from Fund Balance would cause some heartburn, more for some than for others. Chair Ivey said that the School and the City 911 contract will make up half of what is needed. Commissioner Frizzell stated $1 million from our cushion. Chair Ivey stated that he did not see the % million dollar change from the last meeting. FD Hobbs told the Board that this is from lapse salaries. Chair Ivey mentioned that there is a difference in expenses, but capital and capital major are the same. It was stated that there is a hold on the ambulance and the SCATS Bus. The Board was informed by the County Manager that the only cost to the county for the Scats Bus is 10%. Per Robert Sampson, Public Safety Director, it will cost $3000.00- $5000.00 to fix the ambulance, they are down one ambulance and are operating 6 currently. Based on contingency, he would have asked for an ambulance last year, but pushed it back to this year. The cost of a remount is $190,000.00 and the cost of a new ambulance is over $240,000.00. He was asked by a commissioner if it could be pushed off until next year and he replied that two ambulances would be needed next year. Chair Ivey questioned the difference in lapse salaries from the last meeting until today, the amount at the last meeting was $1.41 million and today zero. FD Hobbs replied that too much had been taken out. Chairman Ivey asked about the $1 million dollar difference in personnel costs. County Manager Snead replied that they realized that they were double dipping, freezing the positions and then the lapse salaries. Stating that this resulted ina adding more money to personnel and if this had not changed then it would have resulted in under budgeting for salaries. Chairman Ivey, Spending $1 million more inj personnel, and that he can't see what has changed since last Monday. We must give direction to FD Hobbs and County Manager Snead as to what they need to do. We will have to be done on the 25th, due to the law regarding June 30th and the balanced budget. The consensus is to notify the school system of the $9.8 million instead of the $10 million and he is up for trying but not banking on it. Commissioner Alford stated that you need to try. County Manager Snead asked what will you do with the $200,000.00? Vice Chair Gibson asked ifi it needed to be more and that if you are going to shoot, then shoot, make it worthwhile. Discussion continued with Commissioner Alford stating let's be realistic. Commissioner W. Gibson stated that the $9.8 million is what we have talked about for years and if we go into mediation and they use the formula, then they may not even get $9.8 million. Commissioner Alford questioned the date of mediation and stated that it would be after the meeting on June 25th. Budget discussion continued, and the question was asked, how much is needed for 3% match of401K and the answer received from FD Hobbs was an additional $325,000.00 and it includes everyone.. It was also stated that the match was 3.75% before cuts and that it has been at 3% for two years, the employee must contribute 1% and the county will give 2.5%. Question as to whether you can put a freeze on joining, but not change the plan. The County Manager mentioned that we could not control people joining the benefit plan. She also reminded the Board that they are budgeting conservatively, as if each employee will contribute to 401K. It was also mentioned that funds not used will automatically roll over into the Fund Balance. The County Manager asked if the budget would be passed without full allocation of funds to the School System. Chairman Ivey stated that we are still down $1.1 million, and we are still using the Fund Balance. The County Manager spoke regarding  3    insurance, and that it was budgeted assuming all positions were filled and asked ifit could be cut back conservatively with the frozen positions. FD Hobbs informed the Board that $2.3 million was paid for LGRetirement and insurance last year. It was suggested by Commissioner Whit Gibson not to budget this item with the same amount, but to increase it some. The County Manager informed them that she would do the same with insurance and that this would cut down on the amount needed from Fund Balance. Meeting recessed at 10:11 for a ten minute break and  resumed at 10:21 a.m. Meeting resumed at 10:21 a.m.  FD Hobbs informed the Board that $3.6 million dollars was spent in FY 2023 for insurance, health, HSA, etc. The budgeted amount for FY 2024 will be $4 million and FY 2025 the budgeted amount will be $5.4 million. Chair Ivey threw out these figures: decrease at SCS by $200,000.00, $700,000.00 decrease in health insurance, $300,000.00 increase in revenue and decrease in 401K matching, and if all this works then we would break even and have al balanced and only use $500,000.00 of the Fund Balance. Vice Chair Gibson replied that these are big ifs and that you are depending upon another group of people. The County Manaer shared that potential revenue would be from grants received, but they could not be included in the budget. Landfill funds can not be used because it is an enterprise fund and you can't touch those funds. The Commissioners were asked, what are the next steps. Chairman Ivey to go to the school system regarding the $200, 000.00 decrease in funding. Comm. Alford stated that he could go  and have the sit down and talk with SCS Board Chair Rick Singletary.  Ouarter Cent Sales Tax  Chair Ivey mentioned the 1/4 cent sales tax and that it would generate $1 million dollars (only $.25 on a $100.00). This would need to be on the November ballot, the money would be available for the next fiscal year and funds would be dedicated for property relief. Commissioner Alford stated that all votes are needed, but to focus on our seniors with this initiative and how this will be helpful to them. This would be more of a tourism tax and would not affect the food tax. Per FD Hobbs, the tax would go from 6.75 % to 7.00%. It was asked ifit could be advertised as property tax relief. Chairman Ivey replied no, but you can say that it will go into the General Fund only. It was stated that the information needs to get to Dell Parker, Election Department Chair in July, but the County Manager stated that once decided it needs to get to her as soon as possible. Reminded that the funds cannot be dedicated to anything specific.  Chair Ivey stated that we will keep this until the June 25th meeting.  Next Steps:  Commissioner Alford to go to the SCS with the information of decreasing the allocation for FY 24-25 to $9.8 million instead of $10 million for Operations and $300,000.00 for  Capital Projects. Ambulance is on hold. needed.  Tod decrease $700,000.00 from insurance/retirement.  Commissioners were reminded that only $500,000.00 is coming from Fund Balance if  4    Commissioner News  Commissioner Whit Gibson commended Susan Sanders on the great job that she has done and appreciates all of her efforts! The other commissioners agreed. There was not any additional Motion by W. Gibson to go into closed session. Motion was duly seconded by BJ. Gibson. Motion by Commissioner Alford to come out of closed Session. Motion duly seconded by Upon coming out of closed session, Chairman Ivey recessed the meeting until Tuesday, June  news from the commissioners.  Commissioner Frizzell.  25, 2024 at 9:00 a.m., at 517 Peden Street Laurinburg, NC.  olorlhy . ypo Dorothy B. Tyson Deputy to the Board  Board Chair  E  Seal  AR  5