ROCKINGHAM — Commissioner Ben Moss said in an interview Wednesday that he will take County Manager Bryan Land at his word that the Treasurer’s Office recommended that the county switch to an ad valorem sales tax distribution method, despite a state official’s outright denial that they made this recommendation.

Moss also denied the statements made by Commissioner Don Bryant Tuesday that the commissioners did not take into account the impact this change to ad valorem would have on the smaller municipalities in the county, and Bryant’s statement that the issue was only considered for “two minutes” at the April meeting of the Board of Commissioners.

Land told the commissioners prior to their vote on the change April 6 that it had been “recommended” and “pushed” by the Treasurer’s Office. This was false, according to Sharon Edmundson, director of the Fiscal Management Section of the State and Local Government Finance Division of the North Carolina Department of State Treasurer.

“The Department of State Treasurer (DST) staff did not make a recommendation to Richmond County to modify its sales tax distribution method,” read an emailed response from Edmundson to an inquiry by Crump. “DST staff was asked by Mr. Land if the distribution method could be modified; DST staff informed Mr. Land that the option was available to the county, but any decision to modify the distribution method should be made in close consultation with, and with sufficient notice given to, the county’s municipalities.”

This notice and consultation was not provided, based on interviews and statements with leaders from all of Richmond County’s municipalities.

Moss said that, since he is not privy to the conversation, that he will take Land at his word that the state recommended the change to ad valorem.

“Naturally I’m going to have to take my county manager’s word for it,” Moss said. “Bryan has not given any reason to question his honesty.”

It’s unclear whether this conversation between Land and Edmundson’s staff was held via email, phone or in person.

‘I knew what I was voting on’

Bryant attended a meeting on Tuesday called by the Town of Hoffman to get a detailed explanation of the issue — for the first time for both the town and Bryant — from Hamlet City Councilwoman Abbie Covington. Bryant said that the commissioners did not consider the impact that switching to an ad valorem sales tax distribution would have on the smaller municipalities in the county before voting on that change and that the issue was considered for all of two minutes at the April meeting of the Board of Commissioners.

Moss said that he considered these impacts expected them to be far lower than what the City of Rockingham is projecting in their analysis. Moss also said that instead of two minutes, commissioners were made aware that County Manager Bryan Land was considering switching the county to an ad valorem sales tax distribution method when the agenda for the April 6 meeting was sent out a week prior, which Moss called “ample time” for the commissioners to educate themselves on the implications and prepare questions.

None of the commissioners asked any questions before voting. Just before the vote at the April 6 meeting, Moss made the comment that it was a “good idea” and added that “we should have done it a long time ago.” The board voted unanimously in favor of the change.

“All of us had time to educate ourselves, it’s not like that meeting was rushed,” Moss said. “I knew what I was voting on. As an elected official, it’s your job to make sure you’re prepared.”

County leaders made no effort to repeal the decision before the end of the day Thursday, which was the deadline for undoing it. Rockingham City Manager Monty Crump suggested that it may be possible for the county to undo this decision at a later date. Land has said this change was needed to balance the county’s budget.

Moss did not provide details of what he determined the impacts would be on the municipalities, and questioned the numbers Rockingham based their analysis on, calling it “data from the past.” Crump said the data was based on the distribution of sales tax revenue from the 2018-2019 fiscal year, the most recent complete figures, according to Crump.

“I thought it would be minimal,” Moss said of the impacts to the smaller municipalities in the county. “I didn’t think it would by anything like the kind of numbers that are being projected (by Rockingham) … they don’t look realistic.”

He further cautioned that there still isn’t a “100% answer” on the impacts at this stage and that “we’ve still got to look at more numbers.”

The analysis of the impacts of this change conducted by the City of Rockingham shows that Norman would lose 100% of its sales taxes levied, or $25,793.61, annually based on their 2018-2019 numbers. Hoffman stands to lose $89,669.28 in sales tax revenue, or 85.84% of what they received in 2018-2019. Dobbins Heights would lose 79.44%, or $120,185.13. Ellerbe would lose 55.61%, or $103,960.90. Hamlet would lose 40.94%, or $475,316.25. Rockingham would lose 36.3%, or $608,778.70, according to the analysis.

Asked if he expects any of the smaller municipalities will go bankrupt because of this change to ad valorem, as Crump, Covington, Hoffman Town Clerk Maccie Bethea and Dobbins Heights Mayor Antonio Blue have said, Moss said he does not.

“No, I don’t think it’s going to cause any municipality to go bankrupt,” he said. “They have avenues of collecting taxes just like we do. I don’t want anybody to have to raise taxes but the county constantly has to adjust,” while cities have been able to keep their tax rates relatively stable over the last 20 years, some for longer.

Rockingham hasn’t raised their taxes since 2000, Hamlet since 2002, Dobbins Heights since at least 1999 and Hoffman hasn’t increase theirs in 40 years, according to a conversation Land had with a Hoffman official. Ellerbe increased their tax rate in 2016 and 2018 after staying flat at $0.50 from at least 1999 to 2015, according to numbers provided by the county.

No change in other commissioners’ votes

Moss stood by the decision to switch to ad valorem. He cited figures provided by Land which show that the county has seen new expenditures over the last several years have increased by more than $1.7 million because of the added cost of staffing the new 9-1-1 Center by absorbing salaries from Rockingham and Hamlet, and the added cost of code enforcement over territory that was relinquished by these two cities.

Bryant has stated his intent to rescind his vote. At the Hoffman meeting Tuesday, he said, “I did not understand what I voted on.” It would take a majority vote for the decision to be repealed. Bryant said he called three county commissioners in an effort to convince them to join him in rescinding their votes since that meeting, but received no response.

“I stirred the pot,” Bryant said in an email Wednesday. “See what happens.”

His vote would have to be officially rescinded during a regular monthly meeting of the Board of Commissioners, Bryant said.

Moss said he will not rescind his vote.

“I can’t succumb to political pressure or bullying … that’s not grounds for me to change my mind,” Moss said. “I don’t think that I’ll rescind my vote but next year we can take a look at it. I don’t see a need to rescind my personal vote.”

Land has been asked repeatedly by to the municipalities to provide the formula the county used to based their decision on. The Daily Journal has asked Land this week via email whether the effect on smaller municipalities — rather than just on Rockingham and Hamlet — was taken into account, why the municipalities were not notified prior to the vote, and whether Edmundson is correct that her office did not “recommend” the change. Land has not responded to any of these inquiries.

The Daily Journal has reached out to Chairman Kenneth Robinette and Commissioner Tavares Bostic but received no response. Commissioner Rick Watkins referred questions back to Land and said his public comments will be made at the upcoming meeting of the board.

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Commissioner addresses claims by state official, board member

Gavin Stone

News Editor

Reach Gavin Stone at 910-817-2673 or [email protected].