County isn’t meeting with municipalities during agreed upon timeframe

ROCKINGHAM — Richmond County has asked all six of its municipalities to meet in the month of May to discuss a resolution to the sales tax dispute, despite the tolling agreement signed between the county government and the cities of Rockingham and Hamlet which required that the county make a “good-faith effort” to meet with each municipality within the month of April.

The tolling agreement was approved at the county’s, Rockingham’s and Hamlet’s respective monthly meetings this month. The agreement signaled the end of the mediation between these entities over what the cities allege was a breach of contract by the county relating to a 2015 interlocal agreement reached concerning funding for the new 9-1-1 Center. As part of the agreement, the cities agreed to not file a formal lawsuit against the county until after Sept. 13, 2021, and in the meantime the entities would work on a resolution to the ongoing dispute over the county’s change to an ad valorem sales tax distribution method in April 2020 without the threat of these discussions being admissible in court.

The first step in this process, as laid out in the text of the tolling agreement, was for the county to make a “good-faith effort” to meet with each municipality — and for Rockingham and Hamlet to also make this effort to meet with the county — during the month of April.

“The County and Hamlet, and the County and Rockingham, will make a good-faith effort to hold their respective meetings in the month of April 2021, and the County will make a good-faith effort to hold its meetings with the other municipalities during April 2021 as well,” reads Section 3 of the tolling agreement obtained by the Daily Journal.

The county approved the agreement on April 6, a year after they voted to change to an ad valorem sales tax distribution method, and Rockingham and Hamlet approved it on April 13.

The following week on April 19, county staff began reaching out to municipal leaders to find out when they were available to meet with county commissioners. But after each municipality responded, leaders from each described a lack of follow up by the county to meet within the agreed upon timeframe of the month of April. None of them have met with county officials, and there are no plans in place to meet Thursday or Friday.

On Tuesday, April 27 the county contacted each municipality asking if they could meet at various times in May. The deadline for the county to notify the state whether they want to change their sales tax distribution method, should they choose to do so, is April 30. The county and all six municipalities have to submit a draft of their budgets to the Local Government Commission by May 17 for review due to the commission’s concern over the financial status of each entity following the change to ad valorem.

“It is my hope that all six meetings will take place in the next couple of weeks,” said Board of Commissioners Chair Jeff Smart. “Hopefully some good things will surface from these meetings so that all entities can move forward with a positive outlook.”

Smart deferred to the county’s legal counsel when asked Wednesday afternoon whether failing to hold these meetings within the month of April constituted a violation of the tolling agreement, and when asked whether reaching out to the municipalities asking for dates constituted a “good-faith effort” to meet during this time. Smart also did not comment on why there was no follow up with the municipalities after they sent the dates they were available.

County Manager Bryan Land did not respond to a request for comment by press time Wednesday.

Efforts to meet in April

In a letter to Hamlet Mayor Bill Bayless and obtained by the Daily Journal, Land asked him to provide a group of possible dates that Hamlet leaders could meet with Commissioners Tavares Bostic and Andy Grooms to talk about the sales tax issue.

“We are hopeful to get these meetings scheduled as soon as possible,” Land wrote. “As you know this meeting is governed by the Tolling Agreement we have entered to give us ample time to work through all of this. We look forward to being able to sit down with you and discuss how the County might be able to work toward solutions that benefit the City and the citizens of Richmond County.”

Hamlet City Manager Matthew Christian responded in an email to Land and County Clerk Dena Cook on the morning of April 20 with three dates: April 26 after 11 a.m., April 27 before 3 p.m. and April 28 any time, though the Christian discovered a conflict on the 27th 25 minutes after sending the initial email, according to an email chain reviewed by the Daily Journal. Christian then followed up on April 22 asking if the county had decided which day worked best, adding, “As we get closer to the dates our council members have other obligations that limit their availability” and that he understands that the county had many meetings to set up.

Cook responded later that day: “I am waiting on the availability of the Commissioners that are going to be meeting with your municipality. I hope to get the information out to you as soon as possible.”

Cook’s next email to Hamlet came on the morning of April 27 asking them to provide their availability between May 10 and May 14. Christian chose May 10, and the two set the date in stone, though Cook this time specified that the meeting would be held at the Richmond County Administrative Building.

”Thanks for confirming the time. We prefer to meet at Hamlet City Hall,” Christian wrote.

“We are holding all the meetings with municipalities here at our office,” Cook replied.

Rockingham received a letter asking for dates on the afternoon of April 19, and Mayor Steve Morris sent his personal availability on the 20th saying that he was available during certain times on April 21st, 22nd and 27th and any time on the 23rd, 26th, 28th and 29th. Cook replied that, “I will get back with the dates as soon as we get them worked out,” adding, “(i)t will more than likely be a day next week.”

Rockingham officials never heard back on the dates they suggested, according to City Manager Monty Crump.

Ellerbe Mayor Fred Cloninger received an email April 19 asking for possible meeting dates, and he responded the following day with five days the town’s leaders could meet including dates last week and this week. But on Tuesday he received an email from Cook asking for May meeting dates, and they agreed to meet on May 5.

The Town of Dobbins Heights told the county they could meet on the 20th and the 22nd, but when those dates didn’t pan out last week, they reached out on the 21st to suggest times on the 27th, 28th and 29th. The county then called the town on Tuesday the 27th to ask if they could instead meet on May 6, which the town agreed to, according to Tax Collector Reba Dille. Mayor Antonio Blue also asked to meet in Dobbins Heights, but was told they would be meeting in the county’s Administration Building.

Hoffman Mayor Pro Tem Daniel Kelly said Tuesday they sent the county the dates they could meet last week, but never heard back. Norman Mayor Tonia Collins said the have a future meeting set with the county, and Town Clerk Glenda McInnis said they received a call from the county on Tuesday. It’s unclear when the county has planned to meet with Hoffman and Norman officials.

Matthew Sasser contributed to this report.