By Miles Layton

EDENTON — The Chowan County Board of Commissioners voted unanimously Monday to adopt a resolution opposing any constitutional modifications to the county’s property tax authority, pushing back against discussions percolating in the General Assembly that commissioners and county staff warned could cripple local government’s ability to fund essential services.

The resolution, presented ahead of the legislature’s formal session, declares the board’s opposition to any cap, restriction or reduction of county property tax authority that would result in service reductions, delayed infrastructure investment, increased fees and inequitable impacts on residents. Though no specific constitutional amendment has yet been filed, County Manager Kevin Howard said the county is acting proactively.

“I don’t think we can afford any limits on our ability to levy based on unfunded requirements,” said Commissioner Tony Shaffer, who made the motion to approve the resolution. “As Bob (Kirby/Commission Chairman) always talks about, they come to us.”

Before the vote, the board viewed a video message from Kevin Leonard, executive director of the N.C. Association of County Commissioners, who argued that the debate has shifted from tax policy to a broader question about local governance.

“This debate about property taxes is starting to look less like a tax policy discussion, and more like a debate about the role of government,” Leonard said. “It signals a shift away from local decision making towards Raleigh decision making. North Carolina didn’t become one of the best places to live and do business by accident. We built that under the current system.”

Howard drew a direct line between potential tax caps and the cascading effects of federal budget cuts. He told the board that reductions to Medicaid funding at the federal level are being pushed down to the state, and ultimately to counties.

“We estimate over five hundred thousand dollars over two years if it grows because of what the federal budget provides,” Howard said. “They didn’t cut the programs. They just cut the funding. And they added to the requirements.”

Howard noted that property taxes represent roughly 70 percent of the county’s revenue, while 80 percent of expenditures are mandated obligations. He warned that limiting the county’s ability to raise taxes in a single year could prevent financing of large capital projects such as school construction.

“If you’re faced with a large project and you don’t plan way ahead — use the school for example, 1.8 million dollar debt payment — we couldn’t go up in taxes in a single year to cover that debt payment if they made the changes they’re talking about making,” Howard said.

Commissioner Ellis Lawrence expressed sympathy for property owners shouldering an ever-growing tax burden as government programs are shifted downward.

“The property owners constantly carry this load without something being done,” Lawrence said.

Commissioner Larry McLaughlin, who characterized the resolution as somewhat premature given that no formal proposal has yet been introduced, nonetheless supported it as a declaration of the board’s position.

“In a discussion of all the caps and limits on county revenue, I have yet to hear any ideas of alternate streams of revenue to make up for those deficiencies,” said McLaughlin, who chaired the meeting. “Other states that don’t have property tax have a myriad of fees on a host of things to make up for the difference. The resolution on the table is to give our voice to the debate from where we sit right now.”

Howard said he plans to arrange a joint meeting with Rep. Ed Goodwin and Senator Norm Sanderson to brief them directly on the county’s concerns before the session gets fully underway.

Again, Raleigh, maybe stay in your lane — instead of meddling, perhaps your time would be better spent striking down bad laws rather than generating more bills that do more harm than good. Worth noting, the Gates and Hyde commissions have expressed opposition to any changes to the property tax system that would create funding shortfalls and other problems for rural counties.

Subscribe — it’s free!

County Holds Health Insurance Increase to 5 Percent

The board also approved a health insurance plan renewal reflecting a 5 percent premium increase for the 2026-27 plan year, after Pierce Group Benefits negotiated the rate down from an initial 9.7 percent proposal by Blue Cross Blue Shield.

Jim Dubovec of Pierce Group Benefits told commissioners that the county’s plan has been running a medical loss ratio of 94.5 percent over the past two years, driven in part by four high-cost claimants whose combined claims totaled $729,167, with the top two alone accounting for $489,000.

“A five percent increase is one of the best that I’ve been able to present this year,” Dubovec said. “Nationally, medical trend jumped from just under nine percent last year to over twelve percent this year, with prescription costs increasing by over seventeen percent.”

He told commissioners the plan design remains identical to last year — copays, deductibles, maximum out-of-pocket limits and prescription copays are all unchanged. The total annual premium for the 148 employee subscribers comes to approximately $1,885,000, representing an employer contribution increase of $85,549.

Dubovec also presented two optional additions the board could consider at a future meeting: a flexible spending account program, which Dubovec said would cost approximately $3.25 per participating employee per month and would save employees roughly 29 percent on pre-tax medical expenses; and an increase in basic term life insurance coverage from the current $10,000 per employee to one times each employee’s annual salary, up to $150,000. The life insurance upgrade would raise the county’s annual cost from $3,353 to approximately $16,702.

Howard told the board he hopes to eventually move from the flexible spending account to a health savings account model, though structural changes to the existing plan make that a longer-term goal. He acknowledged that Chowan offers the lowest life insurance benefit of surrounding counties.

“We’re the lowest. We have the lowest offering for life insurance in the counties around us,” Howard said. “Looking at increasing that to one times salary — that’s what most of them have.”

Commissioner Lawrence raised concerns that county employees may not be receiving adequate information about their benefits options. Howard responded that the county holds individual enrollment sessions with all employees and that staff-wide meetings would be scheduled in May. The board voted unanimously to approve both the health insurance renewal and the service agreement with Pierce Group.

Commissioner Lawrence and County Manager Howard — maybe share this story so county employees know what’s what.

DSS Retention Incentive Renewed for Third Year

Department of Social Services Director Tyeshia Phelps appeared before the board to request a third-year renewal of the agency’s employee retention incentive program, which she said has been restructured to reward demonstrated loyalty rather than simply encourage new hires to stay.

“When I started the initiative, we gave it to everybody in hopes of retaining them, but of course that did not work,” Phelps said. “So now I would like to do the incentives for the ones that I am able to retain. I want to reward them because a year’s work at DSS is like ten years.”

Under the revised program, employees with one to 15 years of service receive a $1,500 incentive; those with 16 to 30 years receive $2,500. Employees must have completed at least one full year since their last incentive payment and maintained a disciplinary-free record to remain eligible. Phelps said the agency currently has 32 eligible employees, though disciplinary actions would reduce that number.

Funding will come from lapsed salary funds generated by the agency’s ongoing vacancies. If approved, payouts would go out in May before the end of the fiscal year.

Phelps was candid about the limits of any financial incentive in a field known for its complexity and high burnout rate.

“Yes, and no,” she said, when asked whether the program would solve the agency’s retention challenges. “Because the workforce now is just different. They think they’re going to come and save the world. It’s not always. So the ones that do feel like they can make it, they stay.”

Commissioner Shaffer, who also serves on the DSS Board, voiced support, saying Phelps has done “an amazing job of obtaining talent” despite the bureaucratic and regulatory demands of the work.

“The more tools we can give her to manage these affected people, the better off we’re going to be,” Shaffer said.

The board voted unanimously to approve the renewal.

Board Awards Contracts for Bennett’s Millpond, Community Center Parking Lot

Recreation Director Brian Chappell brought two bid awards before the board, both of which received unanimous approval.

The larger contract, totaling $203,307.20, was awarded to Brown’s Land Developing for repairs and accessibility upgrades at Bennett’s Millpond. Chappell said the work will replace the right-side boardwalk leading to the back fishing area, replace the roof on the shelter used for camping and cookouts, and rebuild a second fishing area near the boat ramp. Two ADA-compliant concrete parking spaces, concrete walkways, handrails and boat-ramp guardrails for wheelchair users will also be added.

“Those improvements are long overdue,” McLaughlin said.

The project is funded through a combination of an Accessible Parks Grant totaling $131,351 and LATCF (ARPA) funds of $71,956.20, meaning the county bears no direct cost. Howard noted the grant must be spent by October 2027, and that additional ARPA-funded projects are expected to come before the board in May.

“It’s basically not going to cost the county anything,” McLaughlin said.

The second contract, for $14,251.85, was awarded to East Coast Siteworks LLC for parking lot repairs at the Northern Chowan Community Center. Chappell said tree roots have caused significant damage to the asphalt and created a safety hazard, including at least one reported fall.

“We’ve actually had some issues with somebody falling out there. That area is a safety concern,” Chappell said.

The work will include tree and root removal, replacement of buckled concrete and sidewalks, and the creation of two flower beds where light poles currently stand. Two additional parking spaces will be expanded, including one near the handicap-accessible area. The project will be funded through the county’s sidewalk fund.

Public Comment: Windmill Funds, Opioid Crisis Urgency

Two residents addressed the board during the public comment period, raising questions about wind energy revenue and calling for faster action on the opioid crisis.

Kathleen Miglorie asked commissioners to explain how the county plans to allocate roughly $750,000 in wind turbine tax revenue earmarked for District 2.

“I am just curious if you could provide some insight as to what is happening with the farmland mill funding, specifically for district two,” Miglorie said. “If there are any plans for where that’s going and how that’s going to be allocated and what would happen for Chowan County District Two.”

Howard addressed the question during his manager’s report at the close of the meeting. He said the county received approximately $700,000 in property tax revenue from the Apex wind project in its first year of collection. He explained that the funds were effectively used to provide $900,000 in additional school funding without a tax increase.

“Last year was the first year we got funding — property taxes paid by the windmill, Apex,” Howard said. “Without raising taxes, the commissioners gave $900,000 in additional funding to the school system. It should take seven or eight years for their debt to be paid off, and then we’ll be bringing in between a million and a half and two million dollars a year off of revenues.”

Howard noted the total debt associated with the wind project stands at approximately $13.7 million, and that the annual tax payment fluctuates depending on the county’s tax rate — meaning a revenue-neutral revaluation would reduce the turbine owners’ tax bill and extend the payoff timeline.

Kristy LaLonde urged commissioners and county staff to accelerate the deployment of opioid settlement funds before more community members are lost to addiction.

“Every single day we wait, more people in our community fall deeper into addiction,” LaLonde said. “Families are being torn apart and overdoses continue to rise. Individuals who are ready for help often cannot find it when they need it most, and time is not neutral in this crisis. Delay costs lives.”

LaLonde acknowledged that the board has been working on the issue, but pressed for concrete action.

“This is a moment where leadership matters not just in intention, but in speed and execution,” she said. “People in our community are not asking for perfection, they’re asking for help and they’re asking for it now.”

Later in the meeting, Howard told the board the Opioid Settlement Committee would meet no later than June, and that a newly hired EMS assistant director — who previously ran a similar program in Macomb County — is expected to launch the county’s PORT program by the end of June or beginning of July. Howard also said Chowan County has been approached about potentially joining Pasquotank County in forming a regional drug court through the First Judicial District.