February 18, 2021 - 8:30 am - County Board of Commissioners Meeting Minutes (Special)

10 804 Meeting of the Johnston County Board of Commissioners February 18 , 2021 Special Meeting Work Session The Johnston County Board of Commissioners met in special session Thursday , February 18 , 2021 in the Auditorium of the Johnston County Agricultural Center located at 2736 NC Highway 210 in Smithfield , North Carolina The following members were present Present Chairman Chad M Stewart , Vice Chairman Larry Wood , Tony Braswell , Ted G Godwin , Patrick E Harris , RS “ Butch ” Lawter , Jr , and Fred J Smith , Jr Absent None Also Present Rick J Hester , County Manager , Paula G Woodard , Clerk to the Board , J Chad McLamb , Finance Director and Deputy County Manager , Tyson Radford , Assistant Finance Director , Martha Lasater , Debt Manager , Jennifer J Slusser , County Attorney , Dana Cuddington , Paralegal Deputy Clerk to the Board , and Facilitators Neil Emory and Amy Bason with the North Carolina Association of County Commissioners Chairman Chad M Stewart called the meeting to order at 9 30 am and welcomed everyone work session was delayed by one hour due to inclement weather Facilitators Amy Bason and Neil Emory with the North Carolina Association of County Commissioners thanked the Board for allowing them to be a part of the work session and stated they are here to help however they can Ms Bason briefly updated the Board on current activities within the Association Mr Emory spoke on his outreach efforts for the Association and noted he hopes to be able to contribute to the discussions today by drawing on his experience as a former County Manager Commissioner Ted G Godwin spoke on his work and committee participation with the Association and noted that Ms Bason and Mr Emory are two of his favorite representatives from the Association and he is glad they are attending the work session Commissioner Godwin stated he would like to see the Board move on and make some decisions regarding some of the topics of discussion recently Commissioner Patrick E Harris agreed with Commissioner Godwin and stated there has been some progress made lately which is good , but he also would like to see more things happen Chairman Chad M Stewart stated he would like to see the Board give better direction to staff Chairman Stewart stated each of the Commissioners have many opinions , and he would like to see the Board more united so the staff will have clear direction Commissioner Larry Wood agreed with the previous comments and stated he is proud to be a part of the Board of Commissioners Commissioner Wood stated all the Board members have good ideas and he believes they always have the County in their hearts during conversations Commissioner Wood stated he looks forward to getting some things accomplished at today’s work session Commissioner Butch Lawter concurred with previous comments and stated he would like the Board to come away from the work session with a better direction for the County and for the staff to follow Commissioner Lawter noted the Board will be updating the Comprehensive Land Use Plan which is a good thing , but he feels more direction is needed as the Commissioners look to 2040 and beyond Commissioner Fred J Smith , Jr stated he would like to see the Commissioners come together and have a clear vision on what the County should be 20 years from now Commissioner Smith commented that Johnston County continues to move in fast - forward and the Board must think about what the County should look like in 20 years 1 Davenport Financial Update Kyle Laux with Davenport & Company LLC presented the following financial update to the Board Background ? Johnston County has a track record of fiscally responsible and strategic financial management Page805 February 18 , 2021 – Work Session – Continued ? The County’s partnership with Davenport dates back roughly 20 years – just as the County began its economic expansion that continues today ? During that roughly 20 year time period – the County has – Moved from a solid “ A ” range ratings to have two ratings on the cusp of “ Aaa ” – the highest possible ; – Financed over 525 million in capital investment for critical County infrastructure ; – Saved an estimated 21 million as a result of the County’s steadily increasing credit ratings credit standing ; – Refinanced existing debt for savings of over 44 million over the life of the refinanced loans ; and – Positioned the County to continue to maximize its financial position to the benefit of the County’s taxpayers ? Despite the financial economic impacts of the COVID - 19 pandemic , the County remains financially resilient and is poised to continue to maximize its growth into the future ? Recent economic development successes provide additional momentum for the County Goals & Objectives ? Position Johnston County to be able to maintain its financial strength and stability ? Review the most recent available Rating Agency commentary and results with the Board ? Continue to maximize the County’s ability to achieve “ Aaa ” credit ratings ? Provide suggestions as to ways that are directly within the County’s control to maintain or possibly enhance the County’s favorable standing with the Rating Agencies and the Credit Markets including updates to existing County financial policies ? Continue to engage in multi - year financial planning for both the General Fund and Self - Supporting Water Sewer Utility Enterprise Funds Comparative North Carolina CountiesPage806 February 18 , 2021 – Work Session – Continued History of Johnston County’s Credit Ratings Credit Rating Scale What are the Key Drivers to a Credit Rating Moody’s Quantitative Scoring Factors ? On January 15 , 2014 , Moody’s updated its US Local Governments General Obligation Debt methodology and assumptions Under the methodology , an initial indicative rating is calculated from a weighted average of four key factors “ Below the line ” qualitative adjustments can be made after the initial indicative rating Page807 February 18 , 2021 – Work Session – Continued Standard & Poor’s Quantitative Scoring Factors ? Standard & Poor’s US Local Governments General Obligation Ratings methodology and assumptions utilizes an initial indicative rating is calculated from a weighted average of seven key factors ? Up to a one - notch adjustment can be made from the indicative rating based on other qualitative factors Moody’s Commentary – May 2020 ? “ The Aa1 rating is based on the County’s diverse local economic base with significant ongoing economic investment The rating further reflects growing reserves that help mitigate potential challenges from an elevated debt position and a prudent management team ” ? “ The stable outlook is based upon future economic growth potential as part of the greater Triangle economy , expected adherence to sound policies and maintenance of reserves levels in line with budgetary growth guided by a prudent management team ” ? “ FACTORS THAT COULD LEAD TO AN UPGRADE o Material tax base growth in line with a higher rating category o Improved resident income and wealth levels in line with a higher rating category ? FACTORS THAT COULD LEAD TO A DOWNGRADE o Substantial contraction in tax base and wealth levels o Material declines in reserves limiting financial flexibility o Significant escalation of fixed costs ” S & P Commentary – May 2020 ? “ The AA + GO rating reflects our opinion of the countys PagePage pageNumber5808 February 18 , 2021 – Work Session – Continued ? Strong economy , with access to a broad and diverse metropolitan statistical area MSA ; ? Very strong management , with strong financial policies and practices under our financial management assessment FMA methodology ; ? Adequate budgetary performance , with operating surpluses in the general fund and at the total governmental fund level in fiscal 2019 ; ? Very strong budgetary flexibility , with an available fund balance in fiscal 2019 of 29 of operating expenditures ; ? Very strong liquidity , with total government available cash at 524 of total governmental fund expenditures and 32x governmental debt service , and access to external liquidity we consider strong ; ? Adequate debt and contingent liability position , with debt service carrying charges at 164 of expenditures and net direct debt that is 1055 of total governmental fund revenue , as well as low overall net debt at less than 3 of market value and rapid amortization , with 659 of debt scheduled to be retired in 10 years ; and ? Very strong institutional framework score ” ? “ The rating reflects our view of the countys consistently strong financial performance and flexibility to date The countys use of conservative budgeting assumptions have typically lead to positive operating results , which has allowed the county to build and maintain very strong general fund reserves ” ? “ We believe that prudent budget management and relatively stable general fund revenues , comprised primarily of property taxes , will help the county weather the current recession ” ? “ Given the relative stability in both the local economy and the countys revenue base , we do not expect to change the rating within the outlook period ” UPSIDE SCENARIO ? “ Assuming all other credit factors remain stable , we could raise the rating if underlying economic metrics improve to levels we consider comparable to higher - rated peers ” DOWNSIDE SCENARIO ? “ We could lower the rating if the county experiences financial pressures – stemming from the recession or otherwise that lead to budgetary imbalance and material draws on reserves We could also take a negative rating action if the countys economy or debt profiles materially weaken ” Comparative Per Capital Personal Income ? The graph below shows comparative data from Moody’s for County Per Capita Personal Income ? Per Capita Personal Income is an important factor in the Rating Agencies ’ determination of a local government’s demographic economic strength Comparative Assessed Value Per Capita ? The graph below shows comparative data from Moody’s for County Assessed Value Per Capita PagePage pageNumber6809 February 18 , 2021 – Work Session – Continued ? Assessed Value Per Capita is an important factor in the Rating Agencies ’ determination of a local government’s demographic economic strength Credit Rating Key Takeaways ? The County enjoys top tier credit ratings The ability to manage through the COVID19 pandemic while still producing a record surplus – coupled with resiliency across a majority of other major streams - further underscores the County’s economic and financial strength ? Fund Balance Reserves remain amongst the most heavily weighted factors in the Rating Agency methodology ? The County’s current Fund Balance policy should be updated to reflect the County’s current financial situation Further detail is included herein ? The recent revaluation – which results in an increase to the County’s Real Property tax base of roughly 25 - will provide further momentum to the ratings ? County - wide income statistics ie per capita income continue to be a challenge relative to “ Aaa ” medians These are a major factor in the “ economy ” portion of the Rating Agency methodology which is weighted heavily by the agencies Fund Balance Trends ? The County’s Available Fund Balance increased for the 8th consecutive year in FY 2020 This increasing trend will further aid in maintaining the County’s very strong rating categories ? Preliminary estimates for FY 2021 look positive in terms of the ability to further add to Fund Balance ? The County should consider updating enhancing its Fund Balance policies Comparative Fund Balance ? The graph below shows comparative data from Moody’s for Available General Fund Balance vs Revenues ? The graph shows medians for highly rated National counties , highly rated North Carolina counties , and the eleven other North Carolina Counties that share the County’s current rating of “ Aa1 ”PagePage pageNumber7810 February 18 , 2021 – Work Session – Continued Rating Methodology Fund Balance ? The County’s Fund Balances are now solidly in the “ Aaa ” range for both Moody’s and S & P Fund Balance Considerations ? The County’s Fund Balance levels have improved and are now be in line with “ Aaa ” medians ? The County’s 15 Fund Balance policy should be updated to reflect the County’s current financial situation ? Potential updates to the Fund Balance policy include o Increase the policy minimum from 15 to 20 note this can accomplished based on the County’s existing Fund Balance levels o Adopt a mechanism to allocate year - end surpluses if any via an adopted policy methodology to provide for predictable and responsible allocation of year - end surpluses that is in - line with best practices Fund Balance Policy Updates ? Priorities of an updated Fund Balance policy o – Increase Unassigned Fund Balance minimum to at least 20 ; o – Annual surpluses dedicated to 1 Ensuring Unassigned is at 20 ; 2 Provide Funds for the creation of a new Revenue Stabilization Fund to provide a “ first line of defense ” in the event of an unforeseen decline in revenues ;PagePage pageNumber8811 February 18 , 2021 – Work Session – Continued 3 Provide Funds for a Capital Reserve to help allocate dollars to cash funded capital projects Doing so helps to ensure the County continues to have monies to responsibly balance cash funding of capital needs vs debt funding for longer - term projects Multi - Year Capital Planning Update Existing Tax Supported Debt Service Debt Capacity – Impact of New Debt on Policy Ratios ? The County has substantial capacity versus this policy and should consider tightening it given the expansion in the tax base PagePage pageNumber9812 February 18 , 2021 – Work Session – Continued Debt Capacity – Impact of New Debt on Policy Ratios ? The County has solid capacity versus this policy No immediate change is recommended Debt Capacity Considerations ? The County has debt levels that are in compliance with County policy and highly rated medians ? The County pays it debt off rapidly which leads to a strong Payout Ratio but also a correspondingly higher than national average Debt Service vs Expenditures ? The County’s Debt vs Assessed Value ratio continues to be an important policy but could be tightened to further align with the County’s substantially larger tax base The County could consider reducing this ratio to the 25 range ? The County has strong Debt Capacity with which to finance future capital projects ? The County should continue effort to update its comprehensive “ Debt Affordability ” projections ie impact on the budget to take into account the strong annual cash - flow and the potential to strategically balance its cash funded vs debt funded capital funding mixture Page0813 February 18 , 2021 – Work Session – Continued Utility Enterprise Funds ? The County owns and operates Water , Wastewater , and Solid Waste systems ? The County also serves water customers through Water Districts operated by the County Operations are accounted for through the Water District Operating Fund ? The County Water Fund , Water District Operating Fund , and Wastewater Fund are all Self - Supporting and do not rely on support from the General Fund Utility Capital Planning ? The County anticipates potential Utility Capital Needs of over 300 million over the next 10 years This is a substantial investment in utility infrastructure that is required for future economic growth and regulatory compliance ? The County has historically financed its Utility Enterprise capital needs through a combination of State and Federal loans , Water District Obligations , as well County issued Limited Obligation Bonds backed – in some instances – by County ie General Fund owned assets ? It is anticipated that the magnitude of the County’s Utility Enterprise capital needs will require that the County put in place a new mechanism to finance its Utility Enterprise capital projects – rated Utility Revenue Bonds The historical methods used are not expected to be sufficient to fully fund the needs going forward ? Utility Revenue Bonds are commonly used across the State and the Nation They are a long standing financing structure across the Country and are widely accepted in the municipal marketplace ? As such , the County anticipates putting in place an inaugural issuance of Utility Revenue Bonds in the Spring Summer of 2021 in support of the new Wastewater Treatment Plant project and other immediate needs not covered with state funding ? It is important for the County’s financial health and standing in the eyes of the National Credit Rating Agencies to maintain the “ self - supporting ” status of its utility funds o Relieves pressure on the County’s general tax revenues to fund other critical County - wide priorities education , public safety , etc o Self - Supporting Utility debt is not counted against the County’s Debt Policy Ratio limits This significantly enhances the County’s capacity to take on other critical capital projects ? The Department of Public Utilities , County Finance and the County’s finance team including Davenport are developing a Multi - Year Financial plan for appropriate User Rates – including potential Rate Increases – over the next several fiscal years Summary ? Johnston County continues to grow economically as a result of favorable local and national economic conditions Demographic trends are expected to improve ? Strategic management has been a major factor in the County’s trend of positive rating results ? Interest rates remain at historically favorable levels ? Johnston County is expected to have major capital needs both for general County projects and for Utility Enterprise projects ? Johnston County is expected to have capacity for future debt issuance o Given the evolving nature of the economy and the fact that large capital projects take years to design , build , and construct , Davenport recommends an incremental approach to taking advantage of this expected capacity o It is vitally important to maintain self - supporting utility enterprise funds in order to preserve debt capacity for general County projects Summary – Next Steps ? Balance of February March 1 Develop planning and related materials for Utility Revenue Bonds 2 Continue with FY 2022 Budget development 3 Continue to monitor for refinancing opportunities 4 Consider adopting updated Financial Policy Guidelines Page1814 February 18 , 2021 – Work Session – Continued ? Month of April May 1 Present update to National Credit Rating Agencies a GO Bonds 36 mm of New Money b Utility Revenue Bonds likely in the 60 m range ? Month of May 1 Receive Credit Ratings ? May 11 , 2021 1 Sell GO bonds in the public credit markets ? Month of June July 1 Sell Revenue Bonds in the public credit markets Mr Laux concluded his presentation and offered to answer any questions by the Board The Board discussed the recommendations proposed by Davenport as it relates to amendments to the Financial Policy Guidelines for the fund balance and any year - end surpluses The Board also discussed the Utility Enterprise Funds and the ability to utilize utility revenue bonds for future projects The Board took a ten minute recess 2 Public Utilities Update Utilities Director Chandra Farmer , PE , addressed the Board Ms Farmer introduced Engineering Manager Kim Rineer to the Board and stated Ms Rineer started with the County in the late 1990 ’ s and was instrumental in forming the water districts Ms Farmer stated Ms Rineer is now responsible for the utility needs planning , project design management , and construction management Ms Farmer presented the following update to the Board Page2815 February 18 , 2021 – Work Session – ContinuedPage3816 February 18 , 2021 – Work Session – Continued Ms Farmer reviewed with the Board maps of the current water system within the County as well as the 20 - Year Capital Improvements Plan She continued the presentation as follows Ms Farmer reviewed with the Board maps of the current wastewater system within the County and continued by reviewing the following information as it relates to wastewater services Page4817 February 18 , 2021 – Work Session – ContinuedPage5818 February 18 , 2021 – Work Session – Continued Ms Farmer concluded her presentation and offered to answer any questions Commissioner Butch Lawter spoke on his concerns with continuing to expand infrastructure in the rural areas of Johnston County Commissioner Lawter also spoke on the need to evaluate a county - wide system and possibly see what other counties have done Commissioner Lawter stated perhaps the best way is to continue on with the current system ; however , he would like to see what the options are Commissioner Lawter also noted that Ms Farmer stated the projections from bulk customers are critical in the capital improvements plan and it is important to get the towns involved He noted that it may take some kind of incentive program to make that happen , but their involvement is important for the future of the system At the request of Commissioner Tony Braswell , Ms Farmer clarified the growth numbers in the retail sewer customer base Commissioner Braswell also noted the Board tabled a request to amend the sewer service policy until the revisions could be discussed in more detail at the work session Commissioner Fred J Smith , Jr stated he is not necessarily for or against the revisions , but he feels the amendments need more thought Commissioner Smith also noted that the update to the Comprehensive Land Use Plan would be important in those discussions At the request of Commissioner Larry Wood , Ms Farmer spoke on the proposed revisions to the policy and how staff proposed those amendments to mirror recent revisions in the Land Development Code as it relates to retail sewer service The Board continued to discuss the wastewater system and future growth from the towns and how that affects the County’s system The Board also discussed the residential growth and how the County should move forward with future policies to properly manage that growth The Board recessed for lunch Page6819 February 18 , 2021 – Work Session – Continued 3 Capital Improvements Planning and Planning for Future Strategic Land Purchases County , Schools , Parks , etc County Manager Rick Hester stated he along with the Finance staff have worked together on a suggested multi - year capital improvements plan Mr Hester stated staff has put together a draft of the plan , but noted that nothing has been formally approved or decided upon by the Board Mr Hester stated staff wanted to present some options to the Board and receive feedback before going any further Mr Hester continued that the upcoming sale for the last remaining portion of the 2018 General Obligation Bonds for education will be later in the spring and consists of 21 million for Johnston County Schools and 15 million for the Johnston Community College Engineering Building He stated the Detention Center debt is already factored in the debt capacity model and staff has added the estimated debt for the Public Safety Center should the Board move forward with that construction Mr Hester stated staff is making plans for future referendums for Johnston County Schools and Johnston Community College new construction and renovation projects He noted those amounts vary with different models , but the County will be financially prepared for whichever scenario the Board chooses to approve Mr Hester reminded everyone that counties are limited to even number year referendums He noted the Commissioners have a joint meeting with the Board of Education scheduled for March 16 , 2021 to begin discussions Mr Hester stated one of the difficult things that schools will have to determine is what the future will look like with many students able to attend classes remotely Mr Hester stated staff is also looking ahead at space needs for Johnston County Government and the County is no different than Johnston County Schools in that remote working is now something to be considered He stated in the original internal model , staff had included all the projects already approved by the Board along with a facility for the Department of Social Services DSS Mr Hester stated his original suggestion was to build a DSS building somewhere within a three to four mile area of Smithfield and then renovate the existing DSS buildings and move other county offices from the courthouse to that renovated space Mr Hester also noted that a new Commissioners Meeting Room is needed He stated by moving County offices out of the courthouse it would leave that space entirely for the judicial system Mr Hester reminded everyone that counties are responsible for providing adequate facilities for the judicial system including offices , courtrooms , storage areas , etc Mr Hester stated once the new Detention Center is completed , the Sheriff is planning to keep some spaces in the current jail for his use , but there will be space available to add additional courtrooms He stated if the Public Safety Center Phase 2 is constructed to house the Sheriff’s Office , Emergency Services , and 911 - Communications , it would free up even more space in the current Law Enforcement Center Mr Hester stated the District Attorney’s Office is in need of more space Mr Hester noted there are a lot of moving parts and staff is evaluating all the options available Mr Hester stated for County facilities , the big question is should the County renovate existing facilities or is it best to move to one large campus and build multiple facilities Mr Hester stated the idea of building DSS a new facility and then renovating their existing space for County offices currently in the courthouse is probably the least expensive option and may be a little more timely ; however , staff is open to all ideas and suggestions from the Commissioners Mr Hester stated the County is fortunate to be in a position where it can consider all options as well as possibly look at the tax rate Chairman Chad M Stewart asked would renovating the existing DSS space meet all the needs looking ahead 20 years from now Mr Hester responded that staff is still looking at all the options given how Johnston County continues to grow He noted that remote working alternatives is something that can be considered as well Upon questions by Commissioner Patrick E Harris , Mr Hester stated the Detention Center is scheduled to be completed in April 2022 and if the Board approves moving forward with construction of the Public Safety Center Phase 2 project the estimated completion date for that would be in late 2022 Mr Hester stated if the Board chooses to move forward with the Public Safety Center Phase 2 construction , staff would begin planning for more renovations at the courthouse Commissioner Harris stated there is no question that DSS needs a new structure ; however , he is concerned that renovating the existing DSS space would only be a temporary fix Commissioner Harris suggested looking at a county complex where agencies could be located in one general area Page7820 February 18 , 2021 – Work Session – Continued At the inquiry of Commissioner Ted G Godwin , Mr Hester stated if the existing DSS space were renovated , the Administration Finance Offices , Tax Office , Register of Deeds , and basically any other County agency in the courthouse could move out Finance Officer and Deputy County Manager Chad McLamb stated staff would also be looking at moving the County agencies that are currently occupying leased spaces around the courthouse Mr Hester suggested having a consultant to come in and work with staff to analyze the needs now and for the future to come up with the best options At the inquiry of Commissioner Harris , Mr McLamb confirmed that the County would receive some reimbursement from the federal government for new DSS space construction costs Commissioner Fred J Smith , Jr stated it is more efficient to build new versus renovating because there are many problems with older facilities that can arise Commissioner Smith submitted examples of county government centers in Brunswick and Harnett Counties Commissioner Smith stated in looking ahead 20 years , for efficiency , the Board needs to think about how it can best serve the taxpayers He stated a solution for the long - term is needed and the County has the money and the chance to build a corporate government center that would be more efficient than renovating an older facility Mr McLamb noted that in the suggested model that he and Mr Hester have been working with , they are estimating worst - case scenario figures ; however , he pointed out that those numbers are only estimates and actual numbers would need to be determined once the Board decides upon a definite direction Mr Hester agreed with Mr McLamb that their numbers are only estimates that they put in the model for discussion and actual estimates would need to be determined by an engineer or architect Chairman Stewart stated he understands what Commissioner Smith is saying ; however , he cautioned against elaborate new buildings and spoke on the need to look at all the options Chairman Stewart stated he is not against Commissioner Smith’s idea ; however , the Board must consider how services can best be provided to the taxpayers and perhaps a consultant is needed to help determine the best options The Board continued to discuss options for future county government space needs and the various ways those options could be funded The Board discussed the suggested model from staff versus building a new county government center Mr McLamb again reminded the Board that the estimates he and Mr Hester put in their suggested model could be way over - stated or under - stated because they are estimates and better numbers are needed before going forward with any direction Commissioner Larry Wood commented that everyone can agree more space is needed , but the issue is determining the best way to go forward Mr Hester also stated there would be a time when the County will need to consider purchasing land for school sites , possibly county facilities , parks , and other uses Mr Hester spoke on the land that was purchased in the Cleveland Community for parks and recreation and stated he believes there will be more opportunities for those types of projects in other areas of the County Mr Hester stated staff has built some funds into the suggested capital improvements plan that could be used for those types of opportunities when they arise Mr McLamb noted that there are funds available that could be set aside in a capital projects reserve if the Board chose to do that He stated currently there is 4 million this fiscal year that could be put in such a fund but it would require Board approval Mr McLamb stated he has projected 4 million could be set aside each fiscal year for the next three years totaling 12 million going towards a capital projects reserve if the Board approves setting aside those funds The Board discussed the additional fund balance available over what is required in the Financial Policy Guidelines Mr McLamb stated he is estimating the current fund balance at almost 49 Mr Hester noted that one of the main reasons the fund balance is higher is because during the last fiscal year budget preparation , due to the uncertainties of the economy surrounding COVID - 19 , he was extremely conservative on the sales tax revenue projections Mr Hester stated he would like for the Board to discuss at a future meeting the possibility of amending the fund balance policy from 15 to 20 Page8821 February 18 , 2021 – Work Session – Continued Commissioner Godwin stated he would like for staff to bring forth recommendations for the Board to consider based on the financial presentation from Davenport Open Space and Greenways Coordinator Adrian O’Neal addressed the Board and stated there will be some opportunities coming up for the Board to consider in the next couple of years as it relates to parks , greenways , and open spaces Mr O’Neal also took a moment to update the Board regarding the transfer of land from Johnston County Schools to Johnston County located near the East Clayton Elementary School Mr O’Neal recalled that at a recent meeting , the Board approved pursing the land transfer for a 2 - acre site near the East Clayton Elementary School Mr O’Neal stated the property was not being used by Johnston County Schools and currently houses a county wastewater pump station He spoke on plans to use the property for boat ramp access and other recreation Mr O’Neal stated since the Board’s approval , staff has learned that pursuant to general statutes , Johnston County Schools is unable to transfer the land to the County , but rather they are required to sell it for market value He noted the current tax value is 35,000 Mr O’Neal stated staff is working on the matter to determine any available options and he would keep the Board informed Mr O’Neal also spoke on the property in the Cleveland Community and stated the County has received one grant to help with the cost of that property with another grant possibly coming Mr O’Neal stated the grant received does require some work to begin on the site this year so there will be some activity on the property soon Mr O’Neal also reported that he continues to work with the Triangle Land Conservancy on some good opportunities The Board took a five minute recess 4 Other Board Goals , Final Commissioners Comments , and Facilitators Wrap - Up Commissioner Ted G Godwin commented that while it is always good for the Board to have these opportunities to discuss matters , he is not sure that enough was accomplished today Commissioner Godwin stated he realizes that things need to be properly vetted , but he would like for the Board to make some decisions Commissioner Patrick E Harris stated he has appreciated the conversations today and believes that things are being accomplished Commissioner Harris noted the Detention Center is under construction and the Board is looking at moving forward with a Public Safety Center as well as talking about addressing other space needs so he does believe progress is being made Commissioner Harris stated the wheels of government often turn slow , but first steps have to be taken and these meetings are where those steps can be taken Commissioner Tony Braswell spoke on the financial presentation by Davenport and noted one key point mentioned was growing the existing businesses in the County Commissioner Braswell spoke on the need to come up with more ideas and incentives for the existing businesses to help them grow Commissioner Braswell noted the County has some excess funds and perhaps some of those funds need to be utilized through the Economic Development Corporation as grants for existing businesses Commissioner Braswell stated jobs are created through those existing businesses and they pay their taxes and should be supported Commissioner Braswell stated he would also like for the Board to update the County’s Financial Policy Guidelines as suggested by Davenport Chairman Chad M Stewart stated today’s work session has been great and he appreciated all the discussion Chairman Stewart stated the Board does not traditionally vote at work sessions , but he would like for the Board to consider some of the things talked about today at the regular March meeting Chairman Stewart noted there may also be an opportunity for a second work session after the Board’s joint meeting with the Board of Education in March Commissioner Larry Wood stated he is thankful for the financial position that the staff and past Boards of Commissioners have put this County in Commissioner Wood stated today’s work session has been productive and he agreed with Commissioner Godwin that the Board does need to provide some clear direction Commissioner Wood stated he looks forward to the future and more conversations Commissioner Butch Lawter stated the challenge going forward will be how to spend the funds as efficiently , wisely , and forward - thinking as possible Commissioner Lawter stated the Board has talked about many things today including water and wastewater , buildings , and economic development He stated the Economic Development Department has done a great job and he wants the Board to continue to look outside the box to bring jobs and new opportunities to Johnston County Commissioner Lawter noted a big task upcoming is the Comprehensive Land Use Plan Update and to date only about 10 applicants have applied for the SteeringPage9822 February 18 , 2021 – Work Session – Continued Committee which is recommended to be comprised of 12 - 15 members He encouraged people to apply for that Committee Commissioner Lawter also spoke on parks , open space , and greenways and stated there is an opportunity to work with partners such as the Triangle Land Conservancy who can help the County leverage its funds into something bigger than the County could do on its own Commissioner Lawter continued that coming from a town council , he believes it is critical for the towns to become involved in the water , wastewater , and land use planning discussions Commissioner Lawter stressed the importance of getting the towns involved stating the County can plan all it wants to ; however , if the towns are not involved , then things will not be as good as they can be Commissioner Lawter stated he would like to have a second work session after the joint meeting with the Board of Education where the Board can set some priorities and provide some direction for staff Commissioner Lawter also noted that there are many departments within County government that the Board does not often get to hear from and asked the County Manager to request a one - page summary that lists their goals and challenges for the upcoming year so the Board can be informed Commissioner Lawter stated all County departments are important and he would like for the Board to be informed on their activities Commissioner Fred J Smith , Jr had no further comments Facilitators Neil Emory and Amy Bason provided a wrap up of today’s conversations as well as thoughts and suggestions on how to move forward Ms Bason also asked the Board to stay involved with the North Carolina Association of County Commissioners and to call on the Association for assistance when needed The Board thanked Mr Emory and Ms Bason for being at today’s work session 5 Closed Session – NCGS 14331811 a 5 – Acquisition of Property Commissioner Fred J Smith , Jr moved the Board go into closed session to establish or instruct staff concerning the negotiation of the price and terms of a contract concerning the acquisition of real property pursuant to North Carolina General Statute 143 - 31811 a 5 Commissioner Patrick E Harris seconded the motion which carried unanimously No action was taken Commissioner Fred J Smith , Jr moved the Board adjourn closed session and resume regular session Commissioner Patrick E Harris seconded the motion , which carried by unanimous vote There being no further business , upon a motion by Commissioner Ted G Godwin , seconded by Commissioner Butch Lawter , and carried unanimously , the meeting adjourned at 4 00 pm Chad M Stewart , Chairman Paula G Woodard , Clerk to the BoardPage