[PAGE 1] Greg Edds, Chairman Aaron Church, County Manager Jim Greene, Vice-Chairman Sarah Pack, Clerk to the Board Daniel Lancaster John W. Dees, II, County Attorney Judy Klusman Craig Pierce Rowan County Board of Commissioners 130 West Innes Street ∙ Salisbury, NC 28144 Telephone 704-216-8181 ∙ Fax 704-216-8195 MINUTES OF THE MEETING OF THE ROWAN COUNTY BOARD OF COMMISSIONERS May 19, 2025 – 6:00 PM J.NEWTON COHEN, SR. ROOM J.NEWTON COHEN, SR. ROWAN COUNTY ADMINISTRATION BUILDING PRESENT: Greg Edds, Chairman Jim Greene, Vice-Chairman Daniel Lancaster, Commissioner ABSENT: Craig Pierce, Commissioner Judy Klusman, Commissioner County Manager Aaron Church, Clerk to the Board Sarah Pack, County Attorney Jay Dees, and Finance Director Anna Bumgarner were also present. Call to Order Chairman Edds called the meeting to order at 6:00 p.m. Chaplain Michael Taylor provided a solemnizing prayer. Chairman Edds lead the Pledge of Allegiance. Consider Additions to the Agenda Chairman Edds asked for the following items to be added to the agenda: • Proclamation Establishing May as Mental Health Awareness Month (Special Recognitions) • Scrap Tire Disposal Account Fund Grant Application (Consent Item Y) • Revised Budget Amendment (Consent Item Z) Consider Deletions From the Agenda There were no deletions from the agenda. Consider Approval of the Agenda On motion of Greene, seconded by Lancaster, the Board voted 3-0 to approve the agenda as amended. Consider Approval of the Consent Agenda On motion of Lancaster, seconded by Greene, the Board voted 3-0 to approve the Consent Agenda as presented, as follows: A. Consider Approval of the Minutes - 05/05/25 Regular Meeting B. Budget Amendments, as follows: Equal Opportunity Employer [PAGE 2] 4125- Finance Transfer funds to increase funding for $2,000,000 municipal taxes 4125- Finance Transfer funds to align accounts with fines & $150,000 forfeiture activity 4125- FInance Transfer funds to cover gem mine repairs to $20,200 eliminate liability of injury 4125- FInance Transfer funds to cover HCCBG senior serices $15,000 payouts to Rufty 4125- Finance Transfer funds to align fire district property tax $58,530 accounts 4125- Finance Transfer funds to correct clerical error in $120,000 keying of BA 11-309 C. Change Order #3 - Holden Building Co. - RCC Health Department Project D. Road Name Change-Set Public Hearing for Whiskey Way E. GRANTS: Request to Approve Woodson Foundation Grant to DSS - One Church One Child Program F. GRANTS: Request Approval to Accept NC DNCR Grant Award to Parks & Recreation - Rowan Wild G. RCC Renovations - Ag Building Project - Additional Work - Storage Warehouse H. Change Order #1 - Carpet/Flooring and Installation - Library HQ - Furnish My Place - 25326 I. Award/Approve Contract - ADA Airport Restroom - GCL Development, LLC J. Schedule Legislative Hearing for SNIA 01-25: Doug Foley, for June 2, 2025 K. Schedule Legislative Hearing for Z 03-25: William Claytor Jr., for June 2, 2025 L. VTS and Tax Refunds for Approval M. Alliance Health Medicaid Network Participating Provider Contract N. GRANTS: Request Approval to Robertson Family Founation Grant - ROCOC O. Adoption of Iredell-Rowan Regional Hazard Mitigation Plan P. The Spyglass Group, LLC Telecommunication Service Review Q. GRANTS: Approve Acceptance of America 250 Grant to Parks & Recreation R. Sole-Source FY25 - Carolina Software/Wasteworks S. Designate Ed Muire as Point of Contact (POC) for Annual Demographic Survey T. Town of Landis Property Tax Collection Service Agreement U. Revised Sole Source - The Pursell Group, LLC. d/b/a The Vet Recruiter - Animal Services V. Change Order #1 - Brooks Network Services - Upfit Contract 25332 W. NC Science Museums Grant Program X. Sole-Source - Henry Schein Inc (Nitronox Field Unit Only) - Emergency Services Y. **Agenda Addition** Scrap Tire Disposal Account Fund Grant Application Z. **Agenda Addition** Revised Budget Amendment (EMS) Public Comment Period Chairman Edds opened the floor for Public Comment and closed it after everyone wishing to speak had done so. Page 2 of 12 05/19/25 [PAGE 3] Mae Mack, 92 Saint Mary NW, Concord, advocated for the creation of a youth action agency using the Communities that Care model. She requested a full-time position be established. She gave statistics regarding the success of this model. Brandy Gardner Berg, 8011 4th Street, Spencer, asked the Board to create a youth action agency in Rowan County and asked for a full time coordinator position to be funded by the County. She described the impact this program could have on children. Special Recognitions Chairman Edds recognized Rowan County Emergency Services. Commissioner Lancaster read a Proclamation into record. Chief Allen Cress thanked the Board for their support. On motion of Lancaster, seconded by Greene, the Board voted 3-0 to approve a Proclamation for Emergency Medical Services Week, as follows: PROCLAMATION EMERGENCY MEDICAL SERVICES WEEK MAY 18 – MAY 24, 2025 WHEREAS, emergency medical services are a vital public service; and WHEREAS, the members of emergency medical services teams are ready to provide lifesaving care to those in need 24 hours a day, seven days a week; and WHEREAS, access to quality emergency care dramatically improves the survival and recovery rate of those who experience sudden illness or injury; and WHEREAS, emergency medical services have grown to fill a gap by providing important, out of hospital care, including preventative medicine, follow-up care, and access to telemedicine; and WHEREAS, the emergency medical services system consists of first responders, emergency medical technicians, paramedics, emergency medical dispatchers, firefighters, police officers, educators, administrators, pre-hospital nurses, emergency nurses, emergency physicians, trained members of the public, and other out of hospital medical care providers; and WHEREAS, the members of emergency medical services teams, whether career or volunteer, engage in thousands of hours of specialized training and continuing education to enhance their lifesaving skills; and WHEREAS, it is appropriate to recognize the value and the accomplishments of emergency medical services providers by designating Emergency Medical Services Week. NOW, THEREFORE the Rowan County Board of Commissioners does hereby proclaim the week of May 18-24, 2025, as EMERGENCY MEDICAL SERVICES WEEK with the EMS Strong theme, THIS IS EMS: Caring for Our Communities, and encourages the community to observe this week with appropriate programs, ceremonies, and activities. Vice-Chairman Greene read into a record a Proclamation Establishing May as Mental Health awareness Month. Page 3 of 12 05/19/25 [PAGE 4] On motion of Greene, seconded by Lancaster, the Board voted 3-0 to approve a Proclamation for Establishing May as Mental Health Awareness Month, as follows: PROCLAMATION ESTABLISHING MAY AS MENTAL HEALTH AWARENESS MONTH WHEREAS, mental health is essential to everyone’s overall health and well-being, and all people experience times of difficulty and stress in their lives; and WHEREAS, mental health conditions are real and prevalent in our communities, affecting people of every age, race, gender, and socioeconomic status, with one in five adults and one in six youth experiencing a mental health disorder each year; and WHEREAS, stigma surrounding mental illness discourages individuals from seeking the help they need, and raising public awareness is vital to removing barriers and encouraging open and honest conversations about mental health; and WHEREAS, mental health recovery is possible through prevention, early intervention, access to effective treatment, and community support services; and WHEREAS, Rowan County recognizes the importance of promoting mental health and wellness through community-wide efforts that include education, advocacy, and accessible care; and WHEREAS, local organizations, healthcare providers, schools, faith communities, businesses, and individuals play a critical role in fostering mental wellness and supporting those living with mental health conditions; and WHEREAS, during the month of May, national and local observances unite individuals and organizations to raise awareness, fight stigma, and advocate for better mental health resources and policies. NOW, THEREFORE, BE IT PROCLAIMED, that the Rowan County Board of Commissioners does hereby proclaim May 2025 as MENTAL HEALTH AWARENESS MONTH in Rowan County and encourages all residents to recommit to improving mental wellness in our communities by supporting one another, increasing awareness, and promoting access to care for all. Chairman Edds recognized the Governor’s Volunteer Service Award winners and presented each with a plaque, Governor’s Office celebratory pin, and Rowan County challenge coin. Those recognized were Catherine Rosso, Carolyn Barker, Teresa Montgomery, and Matthew Weaver. Public Hearing and Executive Summary Presentation: EDC Project Pixie Scott Shelton, Rowan EDC Vice President, said the company behind Project Pixie has been in business for decades and is an internationally known name in its industry. The company is currently evaluating potential properties in the Charlotte region for a new facility. A greenfield site in Rowan County is among the candidates and, if chosen, the company would operate two seperate facilities. The company would also create 30 new jobs over the next two years, as well as invest $27.9 million in new construction and equipment for this project. The company plans to begin operations at its chosen location in the first quarter of 2027. Mr. Shelton reviewed the Investment Grant Program and Incentive Policy. Based on the project parameters provided to the Rowan EDC by the company ‘Project Pixie’ scored a total of 5 points which would qualify it for a Level 1 Grant (scoresheet included on page 8). This grant would be equivalent to 40% of the new taxes paid. The company is requesting a Level 1 Grant under this program for the amount and duration adopted in the policy. In order to illustrate the Page 4 of 12 05/19/25 [PAGE 5] financial impact of this potential project on the County we have projected revenue returns over a 10-year period. If Rowan County were chosen, Project Pixie plans to complete construction of its new facility by the end of 2026, with operations beginning in the first quarter of 2027. The overall investment timeline is based on information provided to the Rowan EDC by the company. The evolving nature of County tax rates, assessed value of the installed equipment, and construction timelines require certain assumptions in order to develop a functioning model. To establish a baseline, the following constants were applied: • The County tax rate is fixed at the current rate of $0.58 • The company invests an estimated $22.9 million in real property improvements, with construction completed by the end of 2026. • $5 million of equipment installation occurs by the end of 2026 • Depreciation for business personal property was estimated using the State of North Carolina’s 2025 Depreciation Schedule A • Ten-year lifespans were assumed for all business personal property depreciation In application, it is unlikely that all assumptions will hold constant. The model provides general trends of expected revenues and expenditures. Incorporating the above framework, the following outcomes are projected: • During the five incentivized years, the County would collect $786,540 in revenue and provide incentive grants totaling $314,615. The County would retain $471,925 of revenue during the incentive term. • Modeled with a 10-year horizon, the County would stand to collect an estimated $1,516,526, disburse a $314,615 grant and retain an estimated $1,201,911 of new revenue. Vice-Chairman Greene asked what type of skills are necessary for these jobs and Mr. Shelton said no advanced training was required. At 6:52 p.m. Chairman Edds opened the Public Hearing and closed it after no one wished to speak. On motion of Greene, seconded by Lancaster, the Board voted 3-0 to approve a Level 1 Grant to Project Pixie for the terms stated in the County’s adopted Incentive Grant Program policy. Consider Permit to Exceed PE 01-25 Aaron Poplin, Planning Technician, said Francisco Castro is requesting a Permit to Exceed for an event on May 25th, 2025 at 585 Oak Mountain Rd in Salisbury. The applicant expects the event to attract around 150 people. This event will feature live music and bull riding. Some food and non-alcoholic drinks will be sold by local vendors. The applicant has hosted similar events on this property before. The last time a permit to exceed was granted for an event on this property was in October of 2023 with PE 07-23. Page 5 of 12 05/19/25 [PAGE 6] Mr. Poplin mentioned there was gunfire at an event at this property in 2024. There were previous complaints regarding this property that occurred before the first permit to exceed was issued in 2022. There have not been complaints received since. Chairman Edds questioned if the event was held in 2024 without a permit. Mr. Castro explained the purpose of the event and said there will be security on the premises. Chairman Edds asked Sheriff Travis Allen if two deputies were enough for 150 people and Sheriff Allen suggested three. Mr. Castro said he would contact the Sheriff’s Office and request a third deputy. At 7:03 p.m. Chairman Edds opened the floor for public comment. Sheriff Allen said having three deputies present will make response better in the instance of a complaint or other situation. Hearing no further comments, Chairman Edds closed the floor at 7:05 p.m. On motion of Greene, seconded by Lancaster, the Board voted 3-0 to approve PE 01-25 on the condition of three deputies being present for security. FY 2025-2026 Proposed Budget County Manager Aaron Church presented the Proposed Budget for the 2025-2026 fiscal year. The Budget is balanced and prepared in compliance with the Local Government Budget and Fiscal Control Act. He reviewed recommendations to the General Fund in comparison with the FY 24-25 budget. Property tax rate will remain at 58 cents. The tax collection rate remains the same as 2025 at 98%. The 2026 projected tax base is $21,225,000,000 which is a 5.4% increase over the 2025 total of $20,125,000,000. This will result in a $2,304,000 tax revenue increase. Sales tax revenue is projected to be $40,000,000 which makes up approximately 18.57% of the general fund revenue. This is 4.7% less than 2024’s actual totals. There is no increase in sales tax revenue. Mr. Church compared sales tax revenue over the last ten years. He explained the impact of the projected sales tax revenue and the resulting effects on the County. Mr. Church recommended that the following departments should increase fees: • Emergency Services • Planning • Tax Assessors • Animal Services • Parks and Recreation • Health Department – Dental and Environmental Health Page 6 of 12 05/19/25 [PAGE 7] As of June 30, 2024, the Total Fund Balance was $154,273,795 with $67,554,435 being categorized as unassigned. The recommendation presented included utilizing $10,604,361 to balance the FY 2026 budget. Chairman Edds asked for additional information regarding the Fund Balance. Finance Director Anna Bumgarner explained the statutes that govern how much money must remain in the Fund Balance. She also explained how committed fund are restricted and other constraints that effect how the Fund Balance can be used. Mr. Church detailed one-time Capital Items, as listed below. A total of 99 new vehicles were also requested at an estimated cost of $7,220,790. Only twenty of these vehicles will be recommended in the Budget. One-Time Capital Items Item Cost Funding Source Sewer System Upgrade Facilities $ 63,000 General Fund Fund Balance Odyssey Install Courthouse 40,000 General Fund Fund Balance 800 Radios Transit 136,000 54%Grants 46% General Fund Playground Sloan Park 100,000 General Fund Fund Balance Election Equipment Upgrades 23,000 General Fund Fund Balance HVAC – DSS 30,000 General Fund Fund Balance CRAVC – Telecom 210,000 General Fund Fund Balance Total $602,000 Vehicle Requests Department Vehicles Cost Emergency Services 1 $ 225,000 Facilities 1 50,802 Transit * 3 342,081 Sheriff 15 977,997 Total 20 $ 1,595,880 Thirty-nine new positions were requested by departments totaling $2,821,833, and twenty- five upgrades were requested for a total of $341,977. This Budge will not recommend any new positions or upgrades. Rather, FY 2026 proposes the elimination of ten full-time vacant positions totaling $713,063, as follows: Page 7 of 12 05/19/25 [PAGE 8] _ Department ___Position______ County Manager Administrative Assistant I Facilities Custodial Worker Tax Collector Office Assistant II Information Technology IT Business Analyst III Health Office Assistant III DSS Social Worker II DSS IM Caseworker I DSS Office Assistant III Library Librarian I Parks & Recreation Park Maintenance I Mr. Church explained the County’s ongoing investment in employees and described the recommended changes resulting from a Public Safety pay study. These changes include: Effective July 1, 2025 • Grade changes for 19 position classes • Movement to the minimum of the grade. (Min. 0%, Max 5%) / 1 Outlier at 9.12% • $500 In-Grade Progression • 4% In-Grade Progression • Public Safety in-grade adjustment between 0% to 3% based on length of service in current position as of 6/30/25 • $2,600 Stipend remains Effective January 1, 2026 • Longevity .0% to 2% Mr. Church clarified that employees who have been in their current position less than three years as of June 30, 2025, will not receive an in-grade adjustment. Employees with 3-4 years in their current position as of June 30, 2025, will receive a 1% increase. Employees with 5-8 years will receive 2%, and those who have been in their current position 9 years or more will receive 3%. Employees who are not in Public Safety positions are recommended to receive the following changes: Effective July 1, 2025 Pay study recommended in budget to study non-public safety employees • $500 In-Grade Progression, excluding Commissioners, County Attorney and County Manager • 4% In-Grade Progression, excluding Commissioners, County Attorney and County Manager Effective January 1, 2026 • Longevity .0% to 2%, County Attorney and County Manager remain eligible. Commissioners are not eligible. With these recommendations, the total cost of this investment in employees equals $4,465,464. Page 8 of 12 05/19/25 [PAGE 9] Mr. Church explained anticipated school enrollment changes and said the Budget recommends a 3.5% increase in per-pupil funding to $2,411.03. It is estimated that Rowan- Salisbury schools enrollment would decrease by 134 students, Kannapolis City schools enrollment would decrease by 32 students, and charter schools would see an addition of 532 students. This would result in Rowan-Salisbury schools receiving a 2.7% increase to $1,154,518. Kannapolis City schools would receive a 1% increase to $33,550. Charter schools would receive a 41% increase to $1,426,780. He displayed the following three charts and explained the totals by year: Rowan-Salisbury Schools Total Proposed Funding for School System FY 2025 FY 2026 Rowan-Salisbury Schools (Current Operating) $ 41,520,537 $ 42,673,996 Rowan-Salisbury Schools (Current Capital) 929,634 930,693 Debt Service 4,870,800 10,974,150 Debt Service for $16 Million * 1,500,000 0 Debt Service for $55 Million ** 5,014,000 0 Total $ 53,834,971 $ 54,578,839 Kannapolis City Schools Total Proposed Funding for School System FY 2025 FY 2026 Kannapolis City Schools (Current Operating) $ 3,144,615 $ 3,177,893 Kannapolis City Schools (Current Capital) 70,366 69,307 Debt Service for $2 Million* 254,000 0 Debt Service 208,200 138,850 Total $ 3,677,181 $ 3,386,050 Charter Schools Charter Schools $ 3,473,561 $ 4,889,569 Mr. Church listed current debt service line items according to the following chart: Page 9 of 12 05/19/25 [PAGE 10] Other funds include the following: Fund FY 25 Original Budget FY 26 Proposed Budget Difference from FY 25 Fire District Fund $ 10,778,910 $ 12,646,681 $ 1,867,771 Emergency Telephone System Fund $ 1,155,818 $ 827,950 $ (327,868) Opioid Settlement Fund $ 1,475,808 $ 1,216,128 $ (259,680) Risk Management Fund $ 2,175,214 $ 2,577,366 $ 4 02,152 Landfill Fund $ 9,633,771 $ 9,560,969 $ (72,802) Airport Fund $ 4,558,991 $ 4,234,791 $ (324,200) Water Fund $ 722,398 $ 658,867 $ (63,531) DSS Trust Fund $ 450,000 $ 450,000 $ - Fines & Forfeitures Fund $ 800,000 $ 800,000 $ - ARPA Fund $ 10,600,000 $ 9,770,000 $ (830,000) Page 10 of 12 05/19/25 [PAGE 11] Lastly, Mr. Church explained the fire districts’ proposed tax rates and levies, with twelve districts proposed to have a tax rate change. Mr. Church asked the Board to set a public hearing on the FY 25-26 Proposed Budget for June 2, 2025, at a meeting beginning at 3:00 p.m. Chairman Edds discussed the fire districts, proposed changes, and effects of those changes. On motion of Edds, seconded by Greene, the Board voted 3-0 to set a Public Hearing on the Fiscal Year 2025-2026 Budget on June 2, 2025, at a meeting beginning at 3:00 p.m. Financial Report Finance Director Anna Bumgarner presented the financial reports. She compared annual cumulative expenditures, with FY 2025 equaling $162,081,614 in April. Annual cumulative revenue is at $186,684,147. The annual cumulative property tax was $112,322,600 in March. In January, the annual cumulative sales tax was $25,580,393. She compared monthly sales taxes from 2022 to 2025. Ms. Bumgarner gave the investment report. The County has decided to be conservative in the purchase of investments and at this time will no longer be investing in commercial paper. Currently the County has 14.87% invested in Treasury Bill, Notes or Government Agencies, 83.84% of its total portfolio in North Carolina Capital Management Trust (NCCMT) and the remaining 1.29% in money market instruments. With the change in the market the County’s investment portfolio has improved by 9 basis points from March 31, 2024, to March 31, 2025. Year-to-date interest earnings total $9,704,825 as rates begun to trend down. The chart below shows that on Treasuries and agencies we are getting average yield of 4.378%. Total Portfolio as of March 31, 2025: Investment Investment Amount Weighted Average Average Maturity Portfolio Yield to Maturity (Days) US Treasury & $ 38,398,653 3.071% 127.64 Government Agency Securities NCCMT $ 216,500,479 4.23% 1 Money Market $ 3,322,446 2.15% 1 Instruments Total Portfolio $ 258,221,579 Interest earned through March 31, 2025, is mainly from NCCMT and Truist Bank it totals $7,422,545. This interest is received monthly. Interest earned on Treasuries and Agencies is $2,282,280 through March 31, 2025, and is only received on maturity date. Total interest earned since July 1, 2024 is $9,704,825. NCCMT’s has a short-term focus in its portfolio, and as such the NCCMT yield leads Treasury and Agency issues when rates are rising and lags when rates are falling. Page 11 of 12 05/19/25 [PAGE 12] Closed Session On motion of Edds, seconded by Lancaster, the Board voted 3-0 to enter into closed session pursuant to NCGS 143-318.11(a)(1) to consider approval of the minutes of the Closed Session held on May 5, 2025, as described by NCGS 143-318.10(e), and pursuant to NCGS 143- 318.11(a)(5), for lease negotiations. Open Session At 8:43 p.m. the Board returned to Open Session. Adjournment At 8:43 p.m., on motion of Greene, seconded by Lancaster, the Board voted 3-0 to adjourn. ______________________________________ Sarah Pack, CMC, NCCCC Clerk to the Board Page 12 of 12 05/19/25