Scotland County Board of Commissioners Budget Meeting February 26, 2025 9:00 a.m. 517 Peden Street Laurinburg, NC Commissioners in attendance: Chairman Ivey, Vice Chair Frizzell, and Commissioners Edge, Shelley and O'Neal. Staffi in attendance: County Manager Snead, Attorney Ed Johnston and Clerk to the Board Dorothy B. Tyson. Absent: Commissioners McPhatter and Williams. Call to Order and Invocation Chairman Ivey called the meeting to order and informed those in attendance that this is a reconvened meeting from the February 3, 2025, Regular meeting. The invocation was not given. Approval of the Agenda Chairman Ivey called for a motion to approve the. Agenda. Motion to approve the Agenda made by Comm. O'Neal and duly seconded by Comm. Shelley. Vote to approve agenda: Unanimous. Public Forum No one present for the Public Forum. Consent Agenda Chairman Ivey mentioned that the Consent agenda only had two items, Delinquent Tax Advertisement and Reclassification of Grant Administrator Position. He also stated that the Delinquent Tax list will appear in the Laurinburg Exchange. Motion made by Comm. O'Neal to approve the Consent Agenda and the motion was duly seconded by Comm. Edge. Vote to approve Consent Agenda: Unanimous. Funding Request - Full Gospel Businessmen Fellowship International County Manager Snead stated that the email was sent to all Board members, City Council and School Board Members and that they will possibly be asking for individual donations. Her reason for bringing it up is that it has been sent to the Board members. The request is to provide funds for a camp for youth outing. County Manager Snead stated that her recommendation is to not approve this request to donate to private individuals, as it is not legal to provide public funds for aj private purpose. Discussion: Comm. O'Neal responds that it is good to clarify that we can give funds to nonprofits, as they must provide services for which the County is mandated, but this is not a legal expenditure for public funds. Chairman Ivey states that we/the County must get something in return for the donation and the example given was Partners in Ministry. They received funding, but they in turn provide the afterschool program. County Manager Snead stated that the County is also required to have an agreement with the entity. Chairman stated that with the Tis the Season organization, there was no way to validate their return to the County. Individuals may give donations ifthey chose, but due to this being an illegal action, no vote was taken. 1 Scotland County Board of Commissioners Budget Meeting February 26, 2025 9:00 a.m. 517 Peden Street Laurinburg, NC East] Laurinburg Recycling Center County Manager Snead reported that her task was to investigate the property located at 13821 Dixie Guano Road in Laurinburg. She informed the Board that there is approx. 4.5 acres of land, the property will be valuable to the County in many degrees and would serve a dual purpose. She has negotiated a price of $90,000.00 and needs the Board approval. The dual purposes would be a small recycle center and a maintenance center. Question from Chairman Ivey regarding the funding ofthe purchase and it was stated by County Manager Snead that the funds can come from Enterprise fund (Landfill) and General Fund. County manager Snead asked if the County would want to put up earnest money? Chairman Ivey asked why? The Board was informed by Mrs. Snead that she was just asking and that the property owner had not asked for earnest money. Comm. Edge stated that it would be a sign of good faith to the property owner. It was asked ifa title search was needed? The answer was yes. The property owner does not want a survey, neither does County Manager and Atty. Johnston stated that it wasn'ti needed because we will be purchasing the entire parcel of4.5 acres and nothing is broken up. Comm. Edge asked about having the corners marked due to possible fencing and it is a good practice to know where your boundaries are. The County Manager stated that the entire area would not be fenced in because some of the area is wooded, but finding the corners is good. A 30 day closing is being sought and the title search would be done by Atty. Johnston. Motion made by Comm. O'Neal to buy the property at $90,000.00, have the corners marked and to have a 30 day closing. The motion was duly seconded Lby Vice Chair Frizzell. Vote to approve: Unanimous. FY 2025 Performance Reports. Concerns and Projections Finance Director Hobbs Presented a financial update through January 31, 2025 for the general fund, landfill and water districts. The Landfill collected 88% ofb budgeted revenues and expended 57% ofb budgeted expenditures. Revenues collected were higher than anticipated at this point during the year due to an increase in commercial solid waste. As ofJanuary 31, 2025 we have a Landfill Budget of$ 2.4 million, no budget amendments at this time, Revenues of$ 2.1 million, and Expenditures of$1.3 million. We are showing a profit of $780,000. Projections for June 30, 2025 amend the original budget of $2.4 million, amendments will total $227,500 and the revised budget will be $2.6 million, expenditures of $2.4 million and leaving us with revenues of$270,000.as of June 30, 2025. Cash on hand 1/31/2025 was $ 1.4 million and projected cash on hand 6/30/2025 will be $ 1.7 million. Projections are that 100% of budgeted revenues to be collected and 90% ofl budgeted funds to be expended. Question regarding the Budget amendment of $227,550. from Chairman Ivey. Finance Director Hobbs that this is due to the increase in tipping fees which were not budgeted for and taking into account that we will exceed the current year. Another was asked regarding our fuel dropping by $10,000 and the explanation was that the price fluctuates and that a few years ago there were higher prices, SO she is anticipating the worst case scenario. 2 Scotland County Board of Commissioners Budget Meeting February 26, 2025 9:00 a.m. 517 Peden Street Laurinburg, NC Additional Questions and Discussion: Comm. O'Neal- Regarding Commercial waste, can out oftown people dump their waste there also? County Manager Snead - Yes. There is a charge for commercial waste and this revenue is up due to the restart of bringing back commercial trash to the landfill. Vice Chair Frizzell - Do we still send it to Uhwarrie? Do we bid out for this service? County Manager Snead -Yes we do for both. We are investigating other alternatives due to the increase in prices and the fees for sending 6-7 truckloads a day. Vice Chair Frizzell - When does the contract end? County Manager Snead - It ends at the end oft this year and they are charging more for under loads,prices going up and adding different fees. Comm. O'Neal - Cost of engineering consultants? Vice Chair Frizzell - Is there a timeline for not renewing the contract? County Manager Snead - Yes there is, I think there is a three month notice requiréd. Vice Chair Frizzell - Are we paying Uhwarrie to pick the trash up or are we taking it there? County Manager Snead - We are contracting with them and then they pay a subcontractor to haul the trash off. Comm. O'Neal - Cost of engineering consultantsyengineering services on the expense line? Finance Direct Hobbs - at the end oft the year she investigates the amount of administrative time used for landfill and water districts because we are allowed to move money from the General Fund to the Enterprise Fund for the adm. time spent, that is the majority of the cost, there are not any consultants. Water Districts Finance Director Hobbs reported on the Water Districts as follows: Water District I Water District I collected 65% ofbudgeted revenues and expended 50% of budgeted expenditure. As ofJanuary 31, 2025, Water District I had an original budget of $650,000., amendments in the amount of $87,477. (amended for the Bond Debt for Water Districts, transfer funds in and out from the General Fund to the Water Districts to cover that debt), and the revised budget was 737,466., revenues were $ 479,673., expenditures of $368,351., and the revenue remaining was $111,323. Projections as ofJune 30, 2025 for Water District I are that 100% of budgeted revenues will be collected and 71% of budgeted funds to be expended. Original budget of $650,000., amendments of$173,306., with a revised budget of $823,306., revenues of$820,374., expenditures of $584,260. and the revenue remaining to be $236,114. Projected cash on hand June 30, 2025, for the district is as follows: Water District I is $1.8 million. Water District II Water District II collected 64% of budgeted revenues and expended 43% ofl budgeted expenditures. As of. January 31, 2025, Water District II had an original budget of $2,600,000., amendments in the amount of$ 733,025. (amended for the Bond Debt for Water Districts, 3 Scotland County Board of Commissioners Budget Meeting February 26, 2025 9:00 a.m. 517 Peden Street Laurinburg, NC transfer funds in and out from the General Fund to the Water Districts to cover that debt), and the revised budget was $ 3,333,025., revenues of $1,168,257., expenditures of $757,126. and the revenue remaining being $411,131.00 Water District II projection for June 30, 2025 is that 88% of budgeted revenues to be collected and 73% ofbudgeted funds to be expended. Original Budget of$2,600,000., amendments in the amount of $798,800., revised budget of$3,333,025, revenues of$1,666.424., expenditures of and $1,381,688., and remaining revenues of$ $284,736. Projected cash on hand June 30, 2025, for the district is: Water District II is $2.7 million. Questions and Discussion: Chairman Ivey asked if we were using more water or is it because the City controls most ofthe cost? County Manager Snead responded that she remembers when we were not making money, this is a nice turnaround. You have historically voted with your fee schedule to stay inline with the City fees. Chairman Ivey responds that itjust seems like that is a lot, but he's not complaining. Finance Director Hobbs stated that we do have a lot of expenses, but most are from the purchase oft the water, maintenance and repairs, our two biggest expenditures. $1.5 million is dedicated to the Turnpike Road Water Line, and it does not include the ARPA money. Comm. O'Neal asked if the difference between Water District I and District II could be explained? Finance Director Hobbs stated that District I is made up oft three areas and District II is made up of two areas. District II includes the northern part oft the county, both the City and the Laurinburg/Maxton Airport supply water. The Districts are not connected. The two districts are broken into five and at one time we have seven, and it does not make any sense to set up three more funds as it doesn't make sense. Ofthe five, Laurinburg/Maxton only supplies water to the North District II. General Fund Finance Director Hobbs reported that as of January 31, 2025, the General Fund collected 61% of budgeted revenues and expended 60% of budgeted expenditures. The original budget was $54,821,549.00, budget amendments totalling $1,712,670.00, and a revised budget of $56,534,219.00. General Fund projections for June 30, 2025, were as follows: 97% ofbudgeted revenues to be collected and 100% of budgeted funds to be extended. The Fiscal Year 2024-2025 budget started out as very tight, therefore it is projected that all budgeted funds will be expended. Ifthis projection holds true then it is anticipated that approximately $830,000.00 in fund balance will be used to cover the overages. Finance Director Hobbs provided explanations for revenues and expenditures on the. January 31, 2025 and June 30, 2025 reports. Questions and Discussion: Comm. O'Neal asked where would Grant funds be listed in the Budget? Finance Director Hobbs mentioned that they are located under Restrictive Revenues. Comm. O'Neal asked if we were on target? The Finance Director answered that each department is different, some are on the money and others have been notified oft their spending. Comm. O'Neal gave kudos to each department. Finance Director Hobbs stated that the departments must use the funds, but ifthe Dept. Heads 4 Scotland County Board ofCommissioners Budget Meeting February 26, 2025 9:00 a.m. 517 Peden Street Laurinburg, NC think that all funding will not be used, they must report the potential rollover. Not just putting on the Consent Agenda. Chairman Ivey mentioned that the $2.1 million in budget amendments caught him off guard. Comm. O'Neal said that Dept. Heads (DH) should come to the BOC Meeting to explain the rollovers. He then asked how hard is it to identify rollovers? County Manager Snead stated that it takes planning. Director of Public Bldg. and Grounds Mike McGirt stated that he would know before the Budget Meeting. Comm. O'Neal wants the Board to know the carry over amounts and that the DH inform Finance Director Hobbs, as this will give the Commissioners a true number. Chairman Ivey stated he doesn't like surprises, and this is a surprise. He wants any Budget Amendments on the Agenda, and that just making adjustments is not a problem. Also that the information should come from the Departments to the Commissioners and a line item by the Department for changes. County Manager Snead responded that the Rules of Procedure shows that Budget Amendments can go under Consent Agenda. Comm. O'Neal asked Tax Administrator Butler if tax liens and surpluses would be for this year or next year? He is referencing the selling of surplus property. Tax Admin. Butler replied that it depends on when the property is sold. Chairman Ivey replied that it is a slow process to sell. Tax Admin. Butler stated that as long as the property is in the owner's hands, they will still have a bill going forth. Amendments Discussion The County Manager asked Finance Director Hobbs if it was safe to say that these amendments were not due to overspending? Finance Director Hobbs replied that it is just moving funds from one internal department to another one within the department. The Amendments presented to you are due to decreased spending of funds, increased spending of funds or the receipt of other monies. County Manager Snead stated that departments must be wise in their spending and that they need to know if departments are moving in the right direction.Chairman Ivey asked the County Manager what were her thoughts about the Budget? The County Manager stated that it is very early, it is a tough year, tough decisions will have to be made. It all depends on what you want to happen. Today, we do not want you to approve or disapprove,, just look at what is presented, no decisions. Master Capital Projects Discussion regarding descaling ofthe Courthouse Sewer line. Mike McGirt, Director of Public Bldg. and Grounds informed the Board that the descaling of DSS and the Health Dept. has been done. Also that these numbers are pretty close and we have advised to descale the Sewer lines at the Health Dept.. The parking lots at IEJ: SCAP is waiting on the State, therefore we can not do anything. The Landfill Scale House is 20 years or older, we need to do something with it, quotes on rehabbing it or a new one, as this is an Enterprise Fund. Encouraged to budget money for the Maintenance Shop SO that they can get started. The County Manager stated that the Recycling Center would cost $300,000.00 and it all depends on what you want to put out there. There will be two bins, and one will be out there at all times. We do not need to buy a compactor. Do we want a guard station with a bathroom? The question was asked if we are moving the entire operation? The response was that this question had been asked before and we are looking at the benefits. Comm. O'Neal- Will $600,000.00 cover both properties? County Manager Snead responded no, you will have to look at site improvements, refurbishing, etc., and Risk Management will have to be involved. Chair Ivey suggested getting recycling up and running 5 Scotland County Board ofCommissioners Budget Meeting February 26, 2025 9:00 a.m. 517 Peden Street Laurinburg, NC first, and to focus on one project at a time. County Manager Snead mentioned the sewer, floor, good bones etc., but some work will have to be done. Roofing: Mr. McGirt reports that the warranty on the roof at the Library expired in 2019, and it was a fifteen year roof. They have cut down trees that were causing problems, trying to push it out a little further, but each one affects the other, a domino effect. There is currently one leak and we can push it out one more year. Chairman Ivey asked what was done in 2019? Mr. McGirt responded that we did repairs, trying to keep the lines, ifit fails, it fails. Comm. O'Neal: The loss is very prominent. Mr. McGirt: Yes, we've done a lot ofwork on the inside. Librarian J. Maley: The leak is inside the Main Library, but not near the books, it is closer to the Emergency exit. Mr. McGirt: We've had a company come out and look at it and to make repairs. Maybe changing the roof, flat on top of flat with windows. The company's recommendation is to redesign. Comm. O'Neal: Is the gutter system good? Mr. McGirt: It fills up too fast and clogs up. Comm. O'Neal: Is there any funding to help?Librarian J, Maley: Grant funds are available, but not targeted for capital improvements. Comm. O'Neal: Can it be cost shared with the City? Librarian J. Maley: Other libraries do this, but not us. Chairman Ivey: It would not hurt to ask. Vice Chair Frizzel: They can only say yes or no. County Manager Snead: The Sheriff's Department is looking at replacing the entire building (SCSO Evidence Bldg.), although the building is listed for under roofing projects. Vice Chair Frizzell: Why is this building being used? County Manager Snead: It is used for evidence storage as required by law. Mr. McGirt questioned the $45,000.00 and that it would be hard to purchase for that amount. County Manager Snead stated that the choices are to go back, work on this and to bring recommendations to do these projects this year or push them back. Chair Ivey agreed for them to bring back recommendations to the Board. Comm. O'Neal wants them to focus on the Detention Center. Librarian J. Maley is requesting a replacement of the Bookmobile, but not another Bookmobile. Chairman Ivey asked what is wrong with the current one? Librarian Maley stated the generator is the problem. Mr. McGirt added that the generator was priced and the quote was $20- $25,000.00. Comm. O'Neal: Possibly repurposing the Book Mobile and purchasing something else. County Manager Snead mentioned a new style of delivering services. Chairman Ivey and Vice Chair Frizzell: A generator can be purchased cheaper than that. County Manager Snead shared that there are constant problems with the Bookmobile. Librarian Maley informed the Board that the life of a Bookmobile is fifteen years, this is a 2012 model and has had ongoing generator and electrical issues. County Manager Snead stated that it was too early to know, but we can talk more and ask questions. Chairman Ivet: We are looking at getting the cars that the Sheriff's Office needs. County Manager Snead informed the Board that they have ordered two and are using some ofthe money that will come in from Drug Seizures. She stated that she will also look into the restrictions for using the money. 6 Scotland County Board of Commissioners Budget Meeting February 26, 2025 9:00 a.m. 517 Peden Street Laurinburg, NC 911 Director S. Dutch informed the Board that they must have (legislatively required) battery back up and generators. The battery back up runs for six hours. Funds from 911 would cover 50% ofthe cost. We currently have 80 and are only replacing 40 at this time. She also told the Board that Moore Count was sued because their back up did not work. Departmental Personnel Requests County Manager Snead reported that there is $400,000.00 extra in the budget, one new employee for Parks and Recreation and one Reclass which are not listed and they are minimal cost. Report from the Liaison Committee Chairman Ivey reported that the Commissioners did not commit to anything. The School System's request is $14 million. It is contentious because they are using the all in numbers. In 2024-25, the County gave $10 million for operational and $300,000. For Capital Outlay. The School System is counting the $2.5 million in Sales Tax Revenue and the $2 million Lottery Fund in their request. Ifthese numbers are taken out, we would be at $9.8 million. Itis required that low wealth counties are receiving an average of$1280.00 per student. The ADM number received from the School System is 5300+. County Manager Snead reports that the information she received from DPI is to use the Best of 1 or 2 Method. To use this method you would need to use the ADM from Month 1 or Month 2 and they used the highest amount. Also that last year they started using the ADM from either month and ifit drops during the year no funds are withdrawn from the School System. The ADM for 2024 was 5371, and the ADM for 2025 is 5221. The Scotland County Schools formula is to take the number provided, subtract the 12 graders, and add PreK to get the ADM. She also reported that last year we gave them $1957 per pupil. Chairman Ivey reminded the Board that we have a meeting with the Committee on February 27, 2025 and we need to have a base number to start with. Comm. Shelley asked if we had to have a number? Chairman Ivey responded that we need somewhere to start. Comm. O'Neal asked if we have to discuss this in Open Session? You are publicizing your negotiation strategy. Comm. O'Neal: Land acquisition in Open meetings did not apply. Chairman Ivey: The Committee has to have something. Comm. O'Neal mentioned ADM times Tier 1 daily average. Chairman Ivey asked $9.8 million? Comm. Shelley stated that if we use $1900.00 per pupil and the ADM of 5221, then that is $9.9 million. Chairman Ivey stated that we do not want to jeopardize or cause them to lose their low wealth status. County Manager Snead informed the Board that no one can give an answer about the percentage that they can not go below for low wealth status. Chairman Ivey stated the average low wealth is $1280.00 per pupil. Comm. O'Neal suggested that they talk with other low wealth regarding their calculation. County Manager Snead mentioned doing a Tier 1 county comparison. Comm. O'Neal suggested Anson County 7 Scotland County Board of Commissioners Budget Meeting February 26, 2025 9:00 a.m. 517 Peden Street Laurinburg, NC Chairman Ivey states that a simplified calculation would be $6.8 million and that last year we as Commissioners pledged one amount and then at budget we changed the amount and had to go to the General Fund. Commissioner Budgeting Priorities and Direction Vice Chair Frizzell: nothing Comm. O'Neal: ? COLA/Tax Rate/Other County Manager Snead: Give us any ideas that you have in regard to getting to a starting point. Last year we lost the progression steps, but we kept the 2% COLA, 100% Health Insurance and longevity. Comm. O'Neal: 2% COLA and bring the progression back. Dept. Heads to continue to work with County Manager Snead and Finance Director Hobbs. County Manager Snead said in looking at Budget 2024, and now Budget 2025, COLA's this year would be more fruitful. She expressed kudos to the Department Heads for their efforts! Tax Rate Tax Administrator Miki Butler shared that she will present some helpful information to the citizens regarding the revaluation in an effort to help them understand. She is planning to have written info on the website and Facebook, she will share information on the radio and will have community meetings. a. She stated that with the revaluation, that she did not want the citizens to have sticker shock. Chairman Ivey stated that there is already sticker shock from citizens. Commissioner Comments Vice Chair Frizzel!: Nothing Comm. O'Neal: Nothing Chairman Ivey: Where are we at with the Audit? Finance Director Hobbs: We are off the list, finalizing things now and getting ready. Chairman Ivey told the other Board members about the State sending letters about the Audit to their homes and for them not to be alarmed. Comm. Edge: Nothing Chairman Ivey: Fixing youtube here at Peden Street and at the EOC. County Manager Snead reported that Mr. Walden of Blackwater can not work on the equipment due to not being certified and that his son is not available. We are back to working with the company in Charlotte, they came down, VC3 has called and harassed them, questioned about mics being hooked up and begging them to come work for us. Looking for another vendor. Comm. O'Neal asked ifthe problems were web based or equipment? County Manager responded equipment based. Also that not going live is fine.and the connectivity problem is going live. We will have another vendor. Chairman Ivey stated that something happened during the Cyber Incident. County Manager Snead informed them that we will have backup with the video camera and at the EOC not using the system, using our system. Chairman Ivey stressed fixing the systems and getting them to work. 8 Scotland County Board ofCommissioners Budget Meeting February 26, 2025 9:00 a.m. 517 Peden Street Laurinburg, NC County Manager Snead stated that there are too many hands and everyone is able to change things. Chairman Ivey made the statement that the mics here at Peden Street work better than the mics at the! EOC. Comm. O'Neal: Scotland Health Care System has a good system in their conference room and the vendor is great. County Manager Snead stated that we will reach out to them and also that we received information and recommendation about the Charlotte vendor from the City ofLaurinburg. Chairman Ivey informed the audience that the next meeting will be held on March 10, 2025 at 6:00 p.m., and the location is the EOC Building. He cited the reasons and General Statues for Closed Session and asked for a motion to go into Closed Session. Motion made by Comm. O'Neal to go into Closed Session and duly seconded by Comm. Shelley. Vote to approve: Unanimous. Clerk to the Board Tyson was not present during Closed Session, minutes to be taken by County Attorney Ed Johnston. Tim Ivey, Chair - 7 lothbA Dorothy B. Tyson, Clerko the Board - 4 (Seal) 9 CAR KV