071420wsmHARNETT COUNTY BOARD OF COMMISSIONERS
Minutes of Work Session
July 14, 2020
The Harnett County Board of Commissioners met in work session on Tuesday, July 14, 2020, in
the Commissioners Meeting Room, County Administration Building, 420 McKinney Parkway,
Lillington, North Carolina. Due to COVID-19 this meeting was not open to members of the
public to attend in person however, citizens and staff were provided options to listen to the
meeting live. Only County staff necessary to conduct the meeting or to speak on scheduled
agenda items were in attendance, stationed in the meeting chambers to maintain the
recommended social distancing of six feet, as the Board demonstrated compliance with State law
and prudent public health practices.
Members present:
Staff present:
Howard Penny, Jr., Chairman
Joe Miller, Vice Chairman
Mark B. Johnson, Commissioner
Barbara McKoy, Commissioner
Gordon Springle, Commissioner
Paula Stewart, County Manager
Dwight Snow, County Attorney
Kimberly Honeycutt, Finance Officer
Margaret Regina Wheeler, Clerk
Chairman Penny called the meeting to order at 9:00 am and led the Pledge of Allegiance and
Invocation.
The following agenda was before the Board:
• City of Dunn's revised Property Purchase Proposal
• Development Services:
- Proposed Rezoning: Case # PLAN 2004-0002 & PLAN 2004-0003
Landowner/Applicant: Omega X, LLC; 14.75 +/- acres (out of 68.64
acres total); From Commercial to RA -20M
Proposed Rezoning: Case # PLAN 2006-0001
Landowner/Applicant: Larkin Rufus Crissman & Dorothy Crissman
/ Arlene Buchanan Crissman's Heirs; 5.3 +/- acres (out of 14.5 acres
total); From Commercial to RA -30
• Discuss proposed amendments to the Harnett County Economic Development
Council's Bylaws clarifying Board composition
• Post -Issuance Compliance Policies & Procedures for Complying with Continuing
Disclosure Obligations
• Potential Limited Obligation Refunding Bonds
• Discussion regarding expired tax exclusions/exemptions
July 14, 2020 Work Session Minutes
Harnett County Board of Commissioners
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• County Manager's Report:
- July 20, 2020 Regular Meeting Agenda Review and meeting logistics
Review applications to serve on Boards and Committees
Invitations and upcoming meetings
• Closed session
• Adjourn
Mayor William Elmore, Jr. and City Manager Steven Neuschafer, participating remotely,
presented the City of Dunn's revised property purchase proposal to purchase approximately
25.92 acres; a portion of the reservoir property (approximately 5.13 acres), the Erwin
Wastewater Treatment Plant property (approximately 14.9 acres), a portion of the Swift
Wastewater Treatment Plant property (approximately 5.89 acres) including the transfer of any
permits, appurtenances or easements from Harnett County. Mayor Elmore noted this proposal
may require relocation of the County's raw water line that supplies water to the reservoir as well
as a portion of the Dunn/Erwin Rail Trail. Discussions continued. Commissioners will consider
the proposal and respond back to the City of Dunn as soon as possible.
Angie Stewart presented a proposed amendment to the Harnett County Economic Development
Council's Bylaws clarifying Board composition. Mrs. Stewart said the Council recently
discussed board composition within their bylaws, specifically when county commissioner
representation on the Council changes, maintaining representation from each county voting
district as outlined in Article III, Section 2. Composition (f) and (g) is conflicting. Recognizing
that the intent is to maintain representation from across multiple county districts, the Council
voted to amend the bylaws as proposed. Commissioners will consider approval of the amended
Harnett County Economic Development Council's Bylaws during their upcoming regular
meeting.
Mrs. Honeycutt presented the proposed County of Harnett Post -Issuance Compliance
Policies & Procedures for Complying with Continuing Disclosure Obligations. Mrs. Honeycutt
explained governments that issue publicly traded debt have an obligation to meet continuing
disclosure requirements that are identified specifically in a continuing disclosure agreement
(CDA) which are entered into at the time of bond issuance pursuant to SEC Rule 15c2-12. She
said at the time of the issuance of the bonds, the issuer provides certain annual and statistical
financial information and as part of the CDA, agrees to provide updated financial information on
an annual basis and to notify the public within 10 business days of the occurrence of certain
material events described in the Rule. Mrs. Honeycutt said to ensure compliance, units of local
government are encouraged to establish written policies and procedures to comply with post -
issuance and ongoing requirements of the agreements. Commissioner will consider approval of
the proposed Continuing Disclosure Policy during their upcoming regular meeting.
July 14, 2020 Work Session Minutes
Harnett County Board of Commissioners
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Director of Harnett County Development Services Mark Locklear and Planning Services
Manager Jay Sikes briefly reviewed the following proposed rezonings scheduled for public
hearings during the July 20, 2020 regular meeting:
Proposed Rezoning: Case # PLAN 2004-0002 & PLAN 2004-0003
Landowner/Applicant: Omega X, LLC; 14.75 +/- acres (out of 68.64 acres total); Out
of Pin #'s 0513-69-2523.000 & 0513-68-5465.000; From Commercial to RA -20M;
Intersection of SR # 1121 (Ray Road) & SR # 1124 (Rambeaut Road); Anderson
Creek Township.
Proposed Rezoning: Case # PLAN 2006-0001
Landowner/Applicant: Larkin Rufus Crissman & Dorothy Crissman / Arlene
Crissman's Heirs; 5.3 +/- acres (out of 14.5 acres total); Out of Pin # 9691-73-
3505.000; From Commercial to RA -30; US Hwy 421 North; Upper Little River
Township.
Mrs. Honeycutt presented for discussion potential Limited Obligation Refunding Bonds. She
said due to the current market environment, staff saw this an opportunity to look at existing debt
and have identified 10 obligations that are eligible to be refinanced to take advantage of the
premium. Mrs. Honeycutt said this would not lengthen the terms but would enable the County to
save in excess of $3 Million over the terms. Mrs. Stewart noted that the rates are good right now
and that a public hearing has been noticed for July 20th regarding the commissioner's intent to
enter into an installment financing contract with the Harnett County Public Facilities Corporation
in an amount not to exceed $90,000,000 (the "Contract") to refinance all or a portion of the
County's payment obligations. Commissioners will also consider approval of a Resolution
Authorizing the Execution and Delivery of a County Installment Financing Obligation and
Providing for Certain Other Related Matters Thereto during their upcoming meeting.
Tax Administrator Bill Tyson noted that the Tax Department has done a required audit of
taxpayers receiving tax relief through Elderly/Disabled and Disabled Veteran's exclusions. He
said they have identified a number of deceased taxpayers whose exemptions have expired, some
going back a number of years. Mr. Tyson stated that NC General Statute 105-312 provides a
way to address these inappropriately applied exclusions, with a five-year limitation for looking
back at misapplied exclusions, with penalties associated with this discovery. The total taxes
owed by approximately 134 people for 2015 - 2020 is $101,624 before penalties. Staff stressed
that it is the taxpayer's obligation to update their information annually.
Mr. Tyson said attempting to collect the amounts of property tax and penalty accruing from the
time the deceased taxpayer's exemption/exclusion actually expired could be a lengthy process.
Mr. Snow pointed out that the department does discovery all of the time. Mrs. Stewart said we
should have been doing these audits all along as the group questioned the fairness to other
taxpayers if these debts are forgiven. Discussions continued. It was the consensus of the Board
that the Tax Department must attempt to collect these amounts owed. The Board will consider
this matter during their upcoming regular meeting.
July 14, 2020 Work Session Minutes
Harnett County Board of Commissioners
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Ms. Stewart reviewed the July 20, 2020 regular meeting agenda. Commissioners discussed the
possibility of allowing a limited number of the public to attend the upcoming July 20`h meeting.
The Board and staff reviewed possible meeting options and logistics. Commissioner McKoy
said she was not in favor of opening the meetings to the public due to the continued increase in
COVID-19 cases in Harnett County. It was the consensus of the Board to hold their upcoming
regular meeting in the Board chambers in the Administration Building and to allow a limited
number of the public to attend with precautions in place and adhering to prudent public health
practices.
Commissioner McKoy moved to go into closed session for the following purposes:
1) To consult with the County's legal counsel in order to preserve the Attorney -Client
privilege concerning the handling of certain litigation including the following case:
The Travelers Indemnity Company vs.
Johnson Control, Inc.
US District Court, Eastern District of N.C.
File No: 5:19 -CV -00580-D
This motion is made pursuant to N.C. General Statute Section 143-318.11(a)(3).
Commissioner Springle seconded the motion which passed unanimously.
Commissioner Springle moved that the Board come out of closed session. Vice Chairman Miller
seconded the motion which passed unanimously.
Vice Chairman Miller moved to adjourn the meeting at 10:14 am. Commissioner Springle
seconded the motion that unanimously.
d Penny, Jr., Chai
Regina : er, Clerk
July 14, 2020 Work Session Minutes
Harnett County Board of Commissioners
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