March 2, 2018 - 8:30 AM - County Board of Commissioners Meeting Minutes (Special)

10 111 Meeting of the Johnston County Board of Commissioners March 2 , 2018 Special Meeting Annual Work Session The Johnston County Board of Commissioners met in special session Friday , March 2 , 2018 in the Conference Room of the Johnston Regional Airport , 3149 Swift Creek Road , Smithfield , North Carolina The following members were present Present Chairman Jeffrey P Carver , Vice Chairman Ted G Godwin , Cookie Pope , Allen L Mims , Jr , Chad M Stewart , Larry Wood , and Lee Jackson Absent None Also Present Rick J Hester , County Manager , Paula G Woodard , Clerk to the Board , J Chad McLamb , Finance Director and Assistant 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 Facilitator Neil Emory with the North Carolina Association of County Commissioners Chairman Jeffrey P Carver called the meeting to order at 8 30 am and welcomed everyone Facilitator Neil Emory with the North Carolina Association of County Commissioners introduced himself to the Board along with NCACC Deputy Director and General Counsel Amy Bason Ms Bason provided the Board with a background on the purpose of the North Carolina Association of County Commissioners stating they sincerely appreciate the County’s membership and would like to be of service wherever needed She reviewed with the Board various materials concerning membership benefits , services , and legislative goals stating the Association would appreciate any feedback with regards to legislative issues Ms Bason also took the opportunity to thank Commissioner Ted G Godwin for his service on the Association’s Board She extended the Association’s appreciation and admiration to Commissioner Cookie Pope who has decided not to run for reelection and will be finishing 24 years of service as a County Commissioner at the end of her term County Manager Rick Hester asked if there were any updates on a statewide bond referendum for education noting he had heard the holdup was in the Senate Ms Bason responded there is very strong support in the House for a statewide bond referendum , and agreed the holdup is in the Senate currently She stated the Association is working very hard on the Senate side through their advocates regarding the legislation Mr Emory echoed previous comments by Ms Bason concerning Commissioner Pope and stated she has done a great job helping to lead Johnston County which is recognized across the State 1 Financial Update – Davenport & Company , LLC Kyle Laux with Davenport & Company LLC , presented the annual financial update , as follows , to the Board Background ? During the past several years Johnston County managed its finances through the Great Recession in a manner that allowed the County to – Maintain and or enhance its Credit Ratings ; – Refinance outstanding debt for significant debt service savings ; – Maintain and build its very strong fund balances ; and – Maintain the County’s property tax rate ? The County has enjoyed six straight fiscal years with a surplus in the General Fund FY 2012 - 2017 owing to strong management from the Board and Staff as well as gradually improving economic conditions ? Recent economic development announcements will provide additional momentum to the County’s historically stable growth ? The County’s Credit Ratings are in the upper tiers of the rating categories The County’s strong financials and continued economic momentum will further aid in enhancing these ratings Page112 March 2 , 2018 – 2018 Annual Work Session – Continued ? A 64 million referendum for School and Community College projects was successfully approved by voters with over 70 approval in the Fall of 2013 ? The three tranches of General Obligation Bonds for the Fall 2013 Referendum were competitively sold in the public markets in early calendar year 2014 , 2015 , and 2016 , respectively ? The County also secured 30 million in funding for school projects by issuing the 2017 Limited Obligation Bonds the “ 2017 New Money LOBs ” through a negotiated public sale ? As part of the process of updating the County’s credit ratings for the 2017 New Money LOBs , Moody’s affirmed the County’s rating of “ Aa1 ” with a “ Stable Outlook ” ? Standard & Poor’s affirmed the County’s existing Credit Rating of “ AA + ” and a “ Stable Outlook ” ? In the Spring of 2017 , the County was able to refinance approximately 191 million of existing Installment Payment bonds and LOBs for savings by issuing the 2017 Limited Obligation Refunding Bonds the “ 2017 Refunding LOBs ” through a Direct Bank Loan – The refinancing produced over 980,000 in net savings to the County and reduced the interest rate on the refinanced bonds from 469 to an all - in interest rate of 259 ? In total , the County has saved roughly 318 million by strategically refinancing existing debt for savings since 2010 – Includes 10 separate refinancing transactions 2010A GO Refunding ; 2010 LOB Refunding ; 2010B GO Refunding ; 2012 GO Refunding ; 2013 LOB Utility Refunding ; 2014 LOB Utility Refunding ; 2014 GO Refunding ; 2015 GO Refunding ; 2016 GO Refunding ; and 2017 LOB Refunding Interest Rate Trends ? Although interest rates remain near all - time lows , it is impossible to predict how long rates will remain at these levels Interest rates are capable of rising quickly , as evidenced by the roughly 100 basis point jump that occurred in May to August of 2013 and July to October of 2016 highlighted below Page113 March 2 , 2018 – 2018 Annual Work Session – Continued Goals & Objectives ? Review recent Rating Agency commentary and results with the Board ? Review the beginning phases of multi - year capital planning with the Board , including preliminary planning for a potential upcoming Referendum ? Provide suggestions as to ways that are directly within the County’s control to maintain the County’s favorable standing with the Rating Agencies and the Credit Markets History of Johnston County’s Credit Ratings ? The County’s general obligation credit ratings have been increasing steadily during the past decade ? Moody’s recently upgraded the County’s rating from “ Aa2 ” to “ Aa1 ” ? Both Rating Agencies have assigned a Stable Outlook to the County’s current Credit Ratings ? The Stable Outlook typically means that the Rating Agency does not foresee a rating change in the next several years if the current trajectory in key rating criteria continues Page114 March 2 , 2018 – 2018 Annual Work Session – Continued Moody’s Commentary ? “ The Aa1 rating is based on [ the County’s ] diverse local economic base and integral position in the larger Triangle region economy poised for further growth , rebounding reserves , and a somewhat elevated yet manageable debt position ? The high level rating also reflects the lack of any potential risks posed by variable rate debt , derivatives , or pension pressures , as well as the strength of a prudent management team ” ? FACTORS THAT COULD LEAD TO AN UPGRADE – Achievement and maintenance of financial flexibility in line with higher rating categories – Strengthening of tax base and demographic profile to levels more consistent with highest rating categories ? FACTORS THAT COULD LEAD TO A DOWNGRADE – Significant erosion of the County’s tax base and or demographic profile – Deterioration of the County’s reserves and or liquidity – Increased debt burden S & P Commentary ? “ The ‘ AA + ’ GO rating reflects our opinion of the County’s – Adequate 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 ; – Strong budgetary performance , with operating surpluses in the general fund and at the total governmental fund level in fiscal 2016 ; – Very strong budgetary flexibility , with an available fund balance in fiscal 2016 at 24 of operating expenditures ; – Very strong liquidity , with total government available cash at 430 of total governmental fund expenditures and 25x governmental debt service , and access to external liquidity we consider strong ; – Adequate debt and contingent liability position , with debt service carrying charges at 175 of expenditures and net direct debt that is 1753 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 stable outlook reflects S & P Global Ratings ’ opinion that the County will maintain its strong financial performance and very strong reserves ” ? “ In addition , we believe the County’s very strong management practices , expected economic growth , and access to the Raleigh MSA provide additional rating stability ” ? “ We do not expect to change the rating within the two - year outlook period ” ? UPSIDE SCENARIO – “ With all other rating factors remaining stable , if economic indicators were to show sustained improvement to levels we consider commensurate with those of the County’s higher - rated peers , we could raise the ratings ” ? DOWNSIDE SCENARIO – “ If financial performance or reserves were to experience sustained deterioration , or if the debt and contingent liability profile were to experience sustained weakening , we could lower the ratings ” Fund Balance Trends th ? The County’s Available Fund Balance increased for the 6 consecutive year in FY 2017 This stable trend will further aid in maintaining the County’s very strong rating categories ? Preliminary estimates for FY 2018 look positive in terms of the ability to further add to Fund Balance PagePage pageNumber5115 March 2 , 2018 – 2018 Annual Work Session – Continued Comparative Fund Balance ? The graph below shows comparative data from Moody’s for available general fund balance versus revenues ? The graph shows medians for highly rated National counties , highly rated North Carolina counties , and the six other North Carolina counties that share the County’s current rating of “ Aa1 ” Comparative Per Capita 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 PagePage pageNumber6116 March 2 , 2018 – 2018 Annual Work Session – Continued Debt Capacity Update ? The amount of new debt the County can responsibly take on can be separated into two concepts – Debt Capacity ? The ability to incur additional indebtedness and maintain important financial ratios in - line with County policies and municipal “ Best Practices ” especially as it relates to the rating agencies – Debt Affordability ? The budgetary impact of funding payments on additional indebtedness Capital Planning Key Assumptions ? Existing tax supported debt service factors in the 2017A Limited Obligation Bonds , which were issued to finance 30 million in School Projects and closed on July 13 , 2017 ? The Fiscal Year 2018 General Fund Budget net of Fund Balance Appropriated roughly 219 million is used as the base for purposes of projecting the Debt Service versus Expenditures ratio Future growth is assumed to equal 25 per year ? Assessed Value of Property is assumed to be approximately 158 billion for Fiscal Year 2017 Future growth is assumed to equal 21 in every year except FY 2020 , which assumes 3 growth due to revaluation and FY 2026 , which assumes a 19 billion increase due to revaluation equal to approximately 10 growth ? The County would maintain a 10 Year Payout Ratio of tax supported debt in compliance with its 50 policy ? This analysis assumes the County will have Novo Nordisk Site Work Capital Expenditures of 12 million in FY 2019 , 12 million in FY 2020 , 600K in FY 2021 , and 500K in FY 2022 ? These expenditures are assumed to be cash funded ? Adjustments for future revenues and ongoing expenses for debt service are as follows ? Homebuilders Exemption Possible Veterans Exemption 300K loss of revenue beginning in FY 2019 ; ? Additional Sales Tax Revenue 10 million beginning in FY 2019 ; ? Additional Revenues from Revaluation 30 million beginning in FY 2020 and an additional 30 million beginning in FY 2026 total of 60 million beginning in FY 2026 ; ? New Novo Nordisk Revenue 10 million beginning in FY 2019 , 12 million in FY 2020 , 15 million in FY 2021 , and 23 million in FY 2022 and beyond ; ? Reduction in Public Safety Expenses 650K beginning in FY 2022 ; ? New Gas Pipeline Revenue 10 million beginning in FY 2022 ; and ? Operational Expenses 15 million expense beginning in FY 2019 Ongoing Revenue AdjustmentsPagePage pageNumber7117 March 2 , 2018 – 2018 Annual Work Session – Continued Cash Flow Impact of New Debt Debt Affordability ? Includes the projected annual cash - flow impact of the – 5 million Direct Bank Loan issued to finance potential County projects in 2019 – 52 million COPs issued to finance a Public Safety Center project in FY 2019 – 16 million GO bonds of the November 2018 Referendum issued in FY 2019 – 16 million GO bonds of the November 2018 Referendum issued in FY 2020 – 17 million GO bonds of the November 2018 Referendum issued in FY 2021 – 27 million GO bonds of the November 2018 Referendum issued in FY 2022 Impact on New Debt on Policy Ratios Debt Capacity Summary ? Johnston County continues to grow economically as a result of favorable local and national economic conditions ? Strategic management has been a major factor in the County’s trend of positive rating results ? With the recent economic development announcements in the County , demographic trends are expected to further improve which will aid in achieving further rating improvement ie , income levels , unemployment levels PagePage pageNumber8118 March 2 , 2018 – 2018 Annual Work Session – Continued ? Interest rates remain favorable but are expected to trend upwards for potential future borrowings ? Johnston County is expected to have considerable capacity for future debt issuance 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 The Board discussed the projected available debt capacity and thanked Mr Laux for the information 2 Economic Development Report Economic Development Director Chris Johnson provided the Board with an update on the activities within the Economic Development Office , as follows PagePage pageNumber9119 March 2 , 2018 – 2018 Annual Work Session – Continued Mr Johnson stated the office hopes to complete another strategic plan in September or October of this year with Ted Abernathy’s assistance He stated the purpose of the plan is to bring in key stakeholders across the County to make sure all target areas are being addressed Mr Johnson stated growth will continue especially with the completion of major transportation projects and continued development at I - 40 NC 42 and the McGee’s Crossroads area Mr Johnson reported the population continues to grow and in talking with the Planning Director he learned the County is approaching the 200,000 mark and over the next 15 years could reach 300,000 Page0120 March 2 , 2018 – 2018 Annual Work Session – ContinuedPage1121 March 2 , 2018 – 2018 Annual Work Session – Continued Mr Johnson noted the Raleigh metro area is constantly competing with Austin , Texas and he has suggested the possibility of getting a delegation together and visiting Austin to see what they are doing to handle growth Page2122 March 2 , 2018 – 2018 Annual Work Session – ContinuedPage3123 March 2 , 2018 – 2018 Annual Work Session – Continued Mr Johnson stated Johnston County’s biggest selling point is the interstate connectivity He reported there are 45,000 citizens leaving Johnston County every day to work in Raleigh and they are working with the Capital Area Workforce Development Board as well as Johnston Community College to determine how to identify those individuals that may consider working for a company in Johnston County at either the same salary or a fraction thereof Mr Johnson stated they are hoping through surveys and other methods to identify collectively out of that 45,000 people what percentage would be willing to stay in Johnston County Mr Johnson stated through JoCo Works , they are trying to expose students at a young age , where college may not be in their future , to opportunities where they can stay in school , get a technical education , and help fill the local workforce needs in the County Mr Johnson spoke on the top factors for companies considering new locations and how they are addressing those factors Commissioner Lee Jackson reported he had a chance to attend a recent JoCo Works forum and noted it was a very impressive program Commissioner Jackson stated the effort made him feel good about the County’s ability to get trained workers to new industries as well as existing businesses Mr Johnson agreed stating he has heard from the existing pharmaceutical industries in the County that they would like to see more pharmaceutical companies come to the area because the more companies we have , then the ability to attract talent is greater Mr Johnson also reported the bids have been received for the renovations project at the Johnston County Workforce Development Center and he was pleased to see the bids came in lower than expected He noted contingencies will need to be added , but again he was pleased to see the lower bids Mr Johnson continued his presentation as follows Page4124 March 2 , 2018 – 2018 Annual Work Session – ContinuedPage5125 March 2 , 2018 – 2018 Annual Work Session – Continued Mr Johnson stated the County does have product on the ground such as industrial parks and raw land and the office will continue to work towards getting more certified sites Mr Johnson spoke on the need for more existing buildings and spaces for both large and small projects He stated with the downtown areas being as successful as they are , there is an approximate 95 occupancy rate which means there are very few options for businesses that are looking to locate immediately Mr Johnson stated most businesses do not want to wait months for a building to be renovated or constructed so there is a need to have more product to fill the gaps Mr Johnson stated there are now several certified sites in Johnston County and he noted most of the RFI’s received from the State are now asking for sites that have already had due diligence completed Mr Johnson reported companies want to have information such as geotechnical data , environmental studies , and wetland delineations on the front end before they will consider a site Mr Johnson stated in an effort to have more of these sites , he continues to work with the towns to identify acreage and help get those properties certified to have more product to submit Mr Johnson presented the following 310 - acre site known as the Fleming Gower Site and stated he will be working with the Town of Smithfield to get the site certified Mr Johnson took the opportunity to publically disclose that his wife owns some of the acreage located in the red delineated area Mr Johnson stated he would like to include that acreage owned by his wife so it can be marketed and sold and he would personally incur any costs associated with certifying that portion of the property Mr Johnson stated he will confer with the County Attorney and County Manager to make sure that when the property is considered by a company , that someone else would assume those responsibilities ensuring there are no violations or conflicts of interest Page6126 March 2 , 2018 – 2018 Annual Work Session – Continued Mr Johnson presented the following other sites that he is also working to get certified Page7127 March 2 , 2018 – 2018 Annual Work Session – Continued Mr Johnson updated the Board on the office activity and noted the red in the graph below indicates projects or opportunities the County could not fulfill He stated many of those requests were for existing buildings and last year the office had to turn away approximately 30 similar requests Mr Johnson stated the only existing building of any size in the County is the Carolina Distribution Center former Winn - Dixie building ; however , a lot of times companies do not want to share space and would prefer their own standalone building Mr Johnson stated the County is heavily competing with Lee and Wilson Counties because they are constructing buildings and purchasing land , but he can say that neither one of those counties have had to build a high school in the last 35 years Page8128 March 2 , 2018 – 2018 Annual Work Session – Continued Mr Johnson concluded his presentation by speaking on the importance of identifying and accumulating acreage in order to have an inventory of available industrial property at affordable prices Mr Johnson stated he fully understands the pressure the Board is under regarding school construction , County capital needs , and many other things , but he asked the Board to keep the Economic Development Office in mind when considering future appropriations The Board took a ten minute recess 3 Revaluation Update Tax Administrator Sheila Garner presented the following update to the Board concerning the revaluation project She introduced Fred Pearson from Pearson Appraisal Company which has been assisting with the revaluation and recognized Assistant Tax Administrator Dennis Woodward Page9129 March 2 , 2018 – 2018 Annual Work Session – Continued Mr Pearson stated the above slide indicates the market is strong and presently they are looking only at 2017 sales He reported they are on schedule with the revaluation and he hopes to have all the field work done by the end of July and start another sales analysis looking at only 2018 sales Ms Garner provided the Board with the following examples of what they are seeing in the market Page0130 March 2 , 2018 – 2018 Annual Work Session – ContinuedPage1131 March 2 , 2018 – 2018 Annual Work Session – ContinuedPage2132 March 2 , 2018 – 2018 Annual Work Session – ContinuedPage3133 March 2 , 2018 – 2018 Annual Work Session – Continued The Board discussed changing the revaluation cycle from eight years to a shorter cycle in an effort to avoid “ sticker shock ” for the citizens and provide for a more equal market Ms Garner agreed and stated the purpose of a revaluation is to make sure values are fair and equitable amongst property classes She noted it is difficult to recognize economic changes in between revaluations because the Tax Office must use the last adopted schedule of values until such time as there is a new schedule Ms Garner reported if the Commissioners were to decide to change the cycle to a shorter timeframe , it would require a vote of the Board and then budgeting each year to cover the associated costs Ms Garner discussed cost information with the Board based on various scenarios of how a revaluation is completed and how much staff is needed Following discussion , it was the consensus of the Board to put the revaluation cycle on the April agenda for further discussion Ms Garner continued the presentation as follows Page4134 March 2 , 2018 – 2018 Annual Work Session – ContinuedPage5135 March 2 , 2018 – 2018 Annual Work Session – Continued The Board thanked Ms Garner and Mr Pearson for the information 4 Agricultural Building Auditorium Rental Policies Discussion Cooperative Extension Director Bryant Spivey and County Attorney Jennifer Slusser addressed the Board regarding the rental policies for the Agricultural Building Auditorium Mr Spivey introduced Katie Moore with the Cooperative Extension Office and stated Ms Moore helps manage the auditorium Mr Spivey submitted to the Board a cost comparison of the auditorium rental rate versus other similar venues in Johnston County Mr Spivey explained the Agricultural Building was constructed 12 years ago and since that time the auditorium space has been rented for various needs including business events , chambers of commerce functions , nonprofit organizations , weddings , birthday parties , and even a funeral has been held in the auditorium Mr Spivey reported one of the more common uses on the weekends seem to be wedding receptions and other private parties Mr Spivey continued that over the last couple of years , staff has had some issues with property damage after private events and he felt the need to confer with the County Attorney He noted in talking with Ms Slusser , she had advised that the County could be facing more liability issues with the rental of the auditorium to private parties than is necessary and maybe it was a topic the Board of Commissioners should discuss Mr Spivey stated when the Agricultural Building was constructed years ago , the auditorium was probably the only facility of its kind with a large capacity that could be used by the general public , but there are other venues available now to accommodate large parties Ms Slusser pointed out that the County does not carry general liability insurance , although renters are required to purchase insurance as part of the rental agreement Ms Slusser reported the incidents in question that have caused issues at the auditorium have been private parties as opposed to what one would traditionally think of the space being utilized for She noted Harnett County has a commons area which is used by nonprofit organizations and staff sees no issues with nonprofit groups such as Ducks Unlimited or Johnston Health holding events , but the problems seem to arise from private events like birthday parties and wedding receptions Ms Slusser stated as Mr Spivey pointed out , when the facility was first constructed , it was perhaps the only option people had for large events , but as time has gone on other venues have been constructed to accommodate such occasions Ms Slusser stated staff wanted to bring the matter to the Board of Commissioners and ask the Board to talk about what the intended use is for the auditorium and moving forward what the Board would like to see the space utilized for Ms Slusser reminded everyone that the facility is used by County departments for training and meetings and it has become problematic for staff to hold sessions on a Monday when the space may not have been properly cleaned or restored from a weekend party At the inquiry of Chairman Jeffrey P Carver , staff reported the liability is significantly more than the rental revenue received Ms Slusser noted staff still recommends making the space available to the community partners such as Johnston Health , the rotary clubs , chambers of commerce , and Johnston County Schools as well as nonprofit organizations and the economic development partners , but private parties are the issue Ms Slusser stated staffPage6136 March 2 , 2018 – 2018 Annual Work Session – Continued can bring a proposed policy to the Board for consideration if appropriate She noted even if the Board makes a change in the rental policies , staff would make sure any existing bookings would be honored It was the consensus of the Board for staff to draft a proposed policy revision and bring it to the Board in April for more discussion and consideration 5 Brunch Bill Discussion County Attorney Jennifer Slusser reported the Board had briefly discussed the Brunch Bill at a past meeting and she had the topic on a list of items for follow up Ms Slusser stated for background , the General Assembly adopted legislation which allows counties and cities the authority to adopt an ordinance allowing for the sale of alcoholic beverages beginning at 10 00 am on Sundays on licensed premises Ms Slusser submitted a sample ordinance to the Board and stated there is no public notice or public hearing requirement although traditionally in Johnston County there have been public hearings on these types of issues She stated if the Board wishes to adopt an ordinance , it would be placed on an agenda and could be adopted at the first meeting in which it is introduced via a unanimous vote She noted if the vote is not unanimous , then a second vote would be required at the next meeting Ms Slusser asked the Board to provide direction to staff Commissioner Ted G Godwin stated he thinks there needs to be citizen input or at least an opportunity for the citizens to express their opinion County Manager Rick Hester noted the requests staff has received have generally been in the unincorporated areas such as Flowers Plantation and the Cleveland area Chairman Jeffrey P Carver stated he supports the ordinance due to the loss of sales taxes when citizens drive a little further out of the County to Wake County Commissioner Lee Jackson stated he also feels the public should have an opportunity to speak on the issue Chairman Carver instructed staff to bring the matter back to the Board in June 6 Appointments Policy Review County Attorney Jennifer Slusser submitted to the Commissioners suggested revisions to the Board’s Appointments Policy stating it has been a while since the Board has looked at the policy Ms Slusser reported she along with Clerk to the Board Paula Woodard frequently discuss the appointments policy in that the waiver section of the policy seems to cause the most confusion Ms Slusser reviewed the suggested revisions with the Board and asked for feedback The Board briefly discussed the suggested revisions and there was a consensus to add it to the June agenda for further discussion and consideration The Board recessed for lunch 7 Planning – Growth Policies Discussion Planning Director Berry Gray reviewed the following PowerPoint presentation with the Board Page7137 March 2 , 2018 – 2018 Annual Work Session – Continued Mr Gray explained the blue bars in the graph indicate the number of lots that have been approved by the Planning Board while the red bars are the actual recorded lots on the ground He stated the information does not include municipal numbers Mr Gray noted the majority of the lots approved in 1998 were in Flowers Plantation and in 1999 those numbers include Winston Pointe , Hermitage , and other bigger projects near the Clayton area Mr Gray called to the Board’s attention the lots approved in 2004 and 2005 and noted that increase was due to sewer He explained that at that time the sewer policy was changed to allow sewer allocations for any subdivision with 100 or more lots and many developers came in during that time with large projects for approval in order to qualify for sewer allocations Mr Gray stated a year or so after that , the County then changed the policy back so that 100 lot subdivisions did not qualify Mr Gray stated there is anywhere from 11,000 to 12,000 lots that have been approved but not yet recorded with a large number of those being in Flowers Plantation Page8138 March 2 , 2018 – 2018 Annual Work Session – Continued Mr Gray reviewed the above information with the Board and noted that the majority of the recorded lots from 2017 with sewer were approved over ten years ago and the 235 lots on private sewer are all from Flowers Plantation Mr Gray pointed out that the 459 lots with sewer approved over ten years ago , probably would not have been approved if there had not been a policy change that allowed for the sewer allocation Page9139 March 2 , 2018 – 2018 Annual Work Session – Continued Mr Gray reported the Planning Board has been discussing growth management options over the past several months and one topic under consideration is how to calculate density Mr Gray explained the current calculation is 15 units per acre , but it is based on the gross land area He stated the Planning Board has discussed the possibility of taking out the unusable acreage within the proposed development and base the calculation on usable land only Mr Gray reviewed the following examples of density calculations with the Board Page0140 March 2 , 2018 – 2018 Annual Work Session – Continued Mr Gray reviewed and discussed the following development ordinance options with the Board that have been recommended for further consideration by the Planning Board Mr Gray stated if the Board would like to pursue any of the options above , staff would recommend holding stakeholder meetings as the next step in order to get feedback from the developer and realtor community before proceeding any further It was the consensus of the Board for staff to proceed with stakeholder meetings and share the feedback with the Board 8 Review , Final Remarks , and Adjournment A Bond Referendum Recommendation County Manager Rick Hester stated he is in the process of drafting a recommendation for a bond th referendum and plans to share that with the Board at the Monday , March 5 meeting Mr Hester noted he is currently considering recommending 70 million for a future referendum and then to evaluate the County’s debt capacity in a couple of years to determine when there may be more future debt capacity Mr Hester stated the first action for a referendum would need to be taken in May Commissioner Allen L Mims , Jr updated the Board on a recent joint meeting he attended with Johnston County Schools and Johnston Community College He stated it was a good meeting , but no decisions were made B County Salary Schedule Commissioner Ted G Godwin mentioned the need to look at the salary schedule Commissioner Godwin noted the Sheriff has shared his concerns with some of the Commissioners regarding losing deputies to surrounding areas and he has learned that may also be an issue within the Inspections Department Page1141 March 2 , 2018 – 2018 Annual Work Session – Continued Commissioner Godwin stated Johnston County cannot compete with areas like Raleigh , but there is a need to close that gap County Manager Rick Hester agreed on the need to look at the salary schedule and stated he will have more information at a later meeting to share C Veterans Services Office Veterans Services Advisory Board Chairman Rudy Baker briefly updated the Board with regards to issues and ongoing activities within the Veterans Services Office Mr Baker reported one area of focus is the need to help our veterans with training programs after they leave military service There being no further business , upon a motion by Commissioner Lee Jackson , seconded by Commissioner Cookie Pope , and carried unanimously , the meeting adjourned at 1 00 pm Jeffrey P Carver , Chairman Paula G Woodard , Clerk to the BoardPage