May 26—ROCKINGHAM — Richmond County Board of Commissioners met last week in anticipation of a June 6th vote to pass and implement the county's budget for the upcoming fiscal year.

According to County Manager, Bryan Land, the budget development process started in February but was subject to an unforeseen setback requiring significant allocation reconsideration.

"[Finance Director Cary Garner] and I had a curve ball thrown at us, shall we say, in about the ninth inning with two outs. We were really approaching the end of the budget, things were going pretty smooth, we were thrilled with the position we were in and then this curve ball came out of nowhere to the tune of about $1.3 million of lost revenue that was all equated to some public service values," Land said.

The nexus of Richmond County's lost funds is a function of the reappraisal of public utility companies and relatively high current real estate values in the county.

North Carolina General Statute 105-284 stipulates that the Department of Revenue must adjust public service company values in the year a county conducts a reappraisal, as well as the fourth and seventh year following a reappraisal.

As it stands, Richmond County is approaching a revaluation year.

Land framed the situation; "We are a victim of our own success," where the counties success is real estate pricing. Pursuant to the statute regarding sales assessment ratios, "If the median ratio of real property is 90% or greater, no reduction will be granted. If the median ratio of real property is less than 90%, the Department will use a weighted average of the median real property ratio and a personal property ratio of 100%."

Considering that Richmond County has relatively high real estate prices compared to their appraised value, the county falls below the 90% sales ratio threshold.

According to county Tax Administrator Vagas Jackson, the median ratio of real property sits at 76.46%, whereas the Department of Revenues weighted ratio is 82.44%. The initial figure represents all public utilities, while the second figure only takes county rail roads into account.

Based on these figures, and the state's effort to equalize public service company values, a handicap is imposed on the county, subtracted from overall utility value. When these metrics are extrapolated out the county effectively loses 1.3 million dollars in revenue.

Land did not sit idly by as Raleigh chiseled away at Richmond County Revenue. Land stated that 14 other counties were negatively affected by reevaluation, including Rockingham County. North Carolina Senate president pro tempore, Philip Berger, represents Rockingham County, and Land did his level best, lobbying Senator Berger and others to ameliorate or at least mitigate the steep impact on Richmond County.

According to Garner, this is the plight of some of the poorer counties in North Carolina.

"Like most poor counties in North Carolina are, because the value doesn't grow that much over the cycle and you can't afford to pay to have it reevaluated, or the value didn't change, it hits you potentially on the fourth and seventh year. If you are in a high growth area, which are all on four year cycles, you are never faced with this," he said.

The lost value is particularly poignant for Richmond County considering how many public utility components are present throughout the area. Furthermore, according to Land, homes are selling anywhere from 30 to 50 percent above tax value. Chairman Jeff Smart said that, while sales volume is starting to slow, home prices are still comparatively high.

Animal shelter, foster parents discussed

Following presentation of a general outline of the budget, Chairman Smart presented a disconcerting and pervasive issue across the county. "I think we spend too much money, I always have, even before K2 (K2 Solutions), animals are a problem in Richmond County, I swear I hate to say this, but unlike anywhere else," he said.

Bob Smith, Director of Emergency Services, outlined the problem. According to Smith, the county averages around 350 calls a month regarding animals, whether it be strays, dangerous dogs, or citizens frustrated with the behavior of neighbor pets.

While the commissioners collectively agreed that the county has a problem and that the animal shelter is doing its best, commissioner Andy Grooms offered several sound solutions.

"I don't think we are going to see any significant changes unless we have some policies in place that prevent the kind of dropping off your animals or not getting your animals spayed or neutered," he said. Grooms suggested a fine or fee in relation to animal drop offs and adoptions, in an effort to limit discarded pets, and ensure rescues are spayed and neutered.

Brian Land concurred with Grooms, stating, "Andy probably has a good idea, charge a 40 dollar deposit (when adopting), and if you come back within three weeks or four weeks, where your dog is at the point it can be spayed or neutered, you'll get your forty bucks back. I think it's a good solution."

I have a real concern spending more money on animals than the budget for our veteran services department," commissioner Rick Watkins continued. "We have a hundred seniors waiting for meals on wheels, and we've got children that are foster kids that are having to be placed and stay 24/7 in our human service building," he said.

Commissioner Watkins' comment regarding foster children spurred a discussion about the Department of Social Services, the rise in county children needing foster care, and the incredible but thankless job that director Robbie Hall is doing.

Commissioner Toni Maples asked Hall how long children are staying on the DSS grounds. Hall replied that the longest a child has stayed is three months but conveyed that he is fighting a continuous uphill battle with displaced children. Hall said, "The days of dirty houses and improper supervision, that's not what we are seeing, we are seeing severe neglect, severe abuse, opioids." Hall said that over the course of the last three years, children falling under DSS care have risen from 35 to 115.

Hall is currently engaging the Sandhills Center in hope of developing "professional foster parents." These caregivers will be paid full time to run a multi-bedroom home for the county, alleviating the pressure on DSS and much of the cost associated with employee overtime hours. Hall ensured commissioners that two thirds of the children currently under DSS care could be managed in a foster home environment.

"We don't see the violence that most people are worried about," Hall said regarding a common misconception regarding foster children's behavior.

Commissioner Watkins praised Hall's efforts.

"Robbie actually deserves a pat on the back too, the idea of the professional foster parent, somebody that's a paid person, that's Robbie's solution to handling some of these problems. Our director is looking for solutions that have real merit and its being recognized around the state," he said.

Budget Considerations and notes:

—Budget balanced at $58,706,299 (increase of $1,775,930 or 3.11% from last year)

—Limited discretion over $48.2 million of budget, 81.12% allocated to human services, public safety, debt services, schools, and Richmond Community College

—Local schools make up $14,417,004 or 24.56% of budget

—81% of general fund debt service earmarked for schools and judicial center

—25% of annual sales mandated to Richmond County Schools

—Recommended increase for Richmond County Schools of $401,083 or 4.84%, primarily to increase teacher supplements, and fund state teacher supplement impact on local funds

—Recommend increase for Richmond County Community College of $97,443 used primarily for an increase in insurance expenses

—Tax rate to remain unchanged at 83 cents per $100 of valuation

—For 5th consecutive year, no proposed transfer from solid waste required to balance budget

—For 4th consecutive year, no fund balance appropriated to balance budget

—Proposed 3% cost of living increase (COLA) for county employees at a cost of $706,761

—Two proposed bonus days for employees and employee birthdays off with pay

—Funding available to continue to fund merit pay increases throughout year

The meeting closed with Chairman Smart requesting a four percent bump in employee COLA, over the previously budgeted three percent increase.