The Macon County Board of Commissioners meeting on Tuesday, Nov. 14, lasted more than five hours and included multiple quarrels between commissioners, the crowd and a call from one commissioner for the county manager to resign.
One quarrel occurred after County Manager Derek Roland presented a proposal for a new Recruitment and Retention Pay Policy.
The policy replaces the Premium Pay Policy for Essential Work that the commissioners halted on April 10, 2023, following a Final Rule policy change from the U.S. Treasury when the federal government officially declared the COVID-19 pandemic emergency over. That ended the extra $2 an hour pay per county employee up to the maximum of $14,000, effective from April 26, 2021, through Oct. 20, 2024. The commissioners unanimously enacted that policy on Oct. 10, 2021.
“I stated at that time that the pay plan got us to the five-yard-line with respect to our ability to recruit and retain high-quality employees, but premium pay put us in the end zone,” Roland said Nov. 14, adding he feels like getting to December 2024 gives staff ample time to address questions on how to continue that funding.
Macon County had spent $3.74 million of its $6.94 million American Rescue Plan Act funds when the commissioners unanimously passed Roland’s motion to stop premium pay. The remaining $3.2 million must be spent by Dec. 31, 2024.
On Nov. 14, Roland spoke on a “new solution” as he termed it, which he said would comply with the U.S. Treasury’s rules on spending ARPA funds.
“Just like I said in October 2021, I’ll say it in November 2023, it’s the best way to use these funds,” Roland said. “These men and women are our best asset…we can continue delivering high-quality public services at the lowest tax rate in the state of North Carolina, so it’s a win for the taxpayer as well.”
Roland said the only difference between the recruitment and retention pay policy and the premium pay policy is that the money would now come from the general fund. He said that caveat makes the plan OK, and the N.C. Association of County Commissioners and UNC School of Government approved the plan.
Commissioner Gary Shields made a motion to approve the plan as presented. Commissioner Josh Young said he had more anxiety about this agenda item than all the others because he has employees in his private business who won’t be getting a raise. Young said he was feeling deja vu, asking why they were back at this again. After Roland explained the rule change, Young said he supported it two years ago and didn’t want to take away money pledged to the county employees.
Commissioner John Shearl said he researched the subject and quoted from the April U.S. Treasury ruling.
“What you’re asking the board to do, in my mind, is manipulate the funds from the general fund to take that much money out of the general fund and replace it with the ARPA funds so we can pay this $2 an hour,” Shearl said to Roland. Shearl said the funds could be used for any capital project, but not for premium pay.
Roland responded that Shearl was reading excerpts from the Final Rule, telling him, “You got to read it in its entirety.”
“It’s perfectly legal, what we’re doing with these funds,” Roland said.
Shearl said he got his information from the UNC School of Government that very day, to which Roland responded, “Well, my information’s right.”
Shearl said the county can’t spend every penny they receive to make employees happy.
“The government is being competitive on the taxpayer’s back, end of story, it is happening,” Shearl said.
“So we’re the least competitive in the state of North Carolina then…because we have the lowest tax rate,” Roland responded.
This turned into Shearl speaking about the $65 million county budget approved in June. Shearl said the budget has increased $25 million over the last eight fiscal years and that the only thing the taxpayers have gained by that overall increase “is higher salaries and a larger government.”
“That’s what we’ve gained because our county is falling apart,” Shearl said, which Roland disagreed with.
In June, the county commissioners passed a $63,754,537 budget in a 4-1 vote, with Shearl against it. In 2015-16, eight fiscal years ago, the county commissioners passed a $46,646,357 budget, which ended up as $48,714,056.51 after that fiscal year closed, according to county documents. A difference of $15 million.
Shearl said Roland had stated in a meeting that the county was 50% overstaffed, a claim that Roland scoffed at.
“I’ll tell you what, you called me a liar four times in open session, so tonight, I ask for your resignation,” Shearl told Roland to gasps from the audience, and an audience member called Shearl a liar. After Board Chair Paul Higdon said he would ask the sheriff to remove anyone causing a disturbance, Shearl continued to press.
“I tell you what John…you don’t like the job I’m doing or if you think that poorly of who I am or question my character, and you can get two more commissioners to vote with you, you can have my resignation,” Roland said, claiming he was finished going back and forth with Shearl.
“We need new schools, I tell you what, the center of county government, we met out there, town square, that center of county government looks terrible,” Shearl said, pointing at Roland. “Why don’t we spend money to fix the things people need.”
Shearl started to make a point about there not being a track for track and field kids to run on but was interrupted by an audience member, leading to another stoppage. Answering calls from crowd members to kick the shouter out, Sheriff Brent Holbrooks said that was up to the board chair. Higdon didn’t ask Holbrooks to remove anyone during the meeting.
After Roland and Shearl went another round over the policy, Commissioner Danny Antoine spoke up, asking Roland if other counties paid out the ARPA money in full. Roland said yes. Antoine asked if the federal government clawed back those funds, to which the response was no.
“If that money was promised to them, give them the money, bottom line,” Antoine said. “If the board had a problem with it, it should have never voted in that direction to begin with.”
Higdon spoke up, saying he’s always hesitant to spend taxpayer money. Higdon then talked about the October 2021 salary study and how the county originally proposed the $6.94 million premium pay policy.
“I never had the feeling I had that night. I feel like I’ve been mislead, the wind came out of me, it made me physically sick,” Higdon said. “I’m an elected official and I’m being told how we’re going to use $6.94 million of taxpayer money….I wanted to just go home and quit.”
Higdon said he “reluctantly voted” for the premium pay that day and bemoaned that it has come back after being “put to bed” in April.
“I think this board as a body has the fiduciary responsibility of any money that comes into Macon County that we have options on how that money be spent,” Higdon said.
Higdon asked Roland to provide data on how much money came into Macon County through ARPA and “any kind of taxpayer money that came down from the government,” adding he wants it on one sheet of paper.
“I want that full accounting, I want it presented to us at the December meeting, and that will fall on you Mr. Manager,” Higdon said. “This is taxpayer money, this is not free money.”
Higdon said he met with Roland before this meeting and advised Roland not to present the retention pay policy.
“I could have stopped this thing,” Higdon said, noting he sets the agenda as board chair. Higdon said he’s getting texts from employees about getting their money back, adding that it wasn’t their money to start with.
Higdon said using that money for capital projects would have benefitted every Macon County taxpayer, but said it was never an option and his vote was a “solid no.”
“I’m not saying the county employees don’t deserve this money,” Higdon said. “If they’re not being paid a competitive salary after we did that salary review study, somebody’s not doing their job…Are we going to keep crutching it up with this money?”
Shearl added that being self-employed for 36 years, after a certain point, there’s a limit on how much you can take care of employees.
Shearl addressed Roland, saying it’s nothing personal, but “I know what I’ve been told by you and if you think I’m deaf, I’m sorry.” Shearl said, adding that the budget has increased while the private citizens have struggled to pay their grocery bills.
“I have never heard you say one word in concern about the taxpayers of Macon County, Shearl claimed, to which Roland immediately responded, “They got the lowest tax rate in the state.”
“Everything we do is based on efficiency, and we take pride in that John,” Roland said to Shearl in closing.
Higdon added that Macon County has the lowest property tax rate, but it is not the lowest overall tax rate when adding fire tax, which puts the county among the five lowest.
After all the discussions, the Recruitment and Retention Pay Policy passed by a 3-2 vote, with Shields, Antoine and Young in favor, and Higdon and Shearl against.
After a brief applause from a portion of the crowd celebrating the vote, Higdon called for a break.