PENDER COUNTY — A Monday update on Pender County’s planned merger with Pender EMS and Fire sparked sharp questioning from some commissioners, who raised concerns about the multi-million-dollar cost, the effect on taxes, and the broader implications for county services.
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Sarah Fulton, assistant to the county manager, presented a draft plan for the merger to commissioners on June 2, including an estimated cost breakdown and a transition plan covering human resources, finances, facilities, fleet, technology, training, and special operations. Fulton said there currently is not a total amount for how much the merger will cost in total and a county-wide fire and EMS tax rate has not been established.
The goal is to have the merger completed by July 1, 2026.
Commissioner Brad George, who voted against the resolution to initiate the merger in March, immediately met the plan with criticism, questioning its necessity given the stated unchanging service level and potential taxpayer impact. George previously served on the Fire and EMS board of directors, but resigned in March amid a conflict of interest complaint related to his wife’s position as Pender EMS’ chief financial officer. The District Attorney’s office dismissed the complaint last year.
“Through this entire presentation that we’ve had, we keep hearing that the level of service is going to stay the same for what you have now,” George said. “If we’re keeping the same level of service, what are we changing? Why are we doing this? Because somebody’s going to get a tax increase, whether you think you are or not.”
While the plan remains in its preliminary stage, a final county-wide EMS and Fire tax rate is yet to be established, with Interim County Manager Meg Blue stating the rate will depend on a completed cost analysis. This new county-wide rate, replacing existing district-based fire taxes, will be added to residents’ annual ad valorem property taxes. The individual fire districts, their stations and personnel would remain, but would become part of the county’s new department instead of operating independently.
Among the cost projections, personnel expenses emerged as a significant annual outlay. Fulton indicated changes to personnel, including transitioning staff to county benefits and retirement programs, and hiring additional employees, estimated to annually cost $2.6 million. George, in response, questioned how the county intends to fund this expense and its potential impact on commissioners’ goal to maintain a revenue-neutral property tax rate.
“To remain revenue-neutral, which I think I do and I think the majority of the board wants to do next year, how do you plan on paying for this?” George said. “What services are we gonna cut that we already have, to remain revenue neutral in 2026[-2027]? I know that’s hard to do now, but we have to make that decision now if we’re gonna implement this plan.”
Blue replied, while part of the personnel cost would be covered by the new EMS and Fire tax, not all would be. She added county staff are continuing to review the draft plan to identify potential funding sources.
Beyond personnel, the draft plan’s estimated cost breakdown also includes other merger-related expenses, such as the approximate $15.6 million in debts and liabilities currently carried by Pender EMS and Fire. This debt is associated with existing assets and operational leases, such as loans for ambulances, fire trucks, and other emergency vehicles. George wanted clarification on how assuming EMS and Fire’s debt would affect the county’s bond rating.
According to Blue, it would increase the county’s overall debt level, but the impact on the balance sheet would not be as severe as it appears. She explained much of this debt is offset by the acquisition of corresponding assets, such as the ambulances, fire trucks, and other equipment that Pender EMS and Fire currently holds.
Outside of debts, additional costs include $436,000 for asset-related expenses like rebranding and IT hardware, $441,460 in recurring operational costs for items such as mowing, internet, and licensing, and an estimated $100,000 for legal fees related to asset and deed retitlement.
Blue said county staff is actively working with the Local Government Commission and other financial agencies to assess the potential impact on the county’s bond rating and classifications, such as their Insurance Services Office (ISO) rating.
The ISO rating, a one-10 score, gauges a community’s fire protection and directly impacts property insurance premiums — lower scores mean lower costs for homeowners. While Pender EMS and Fire currently holds an ISO class three rating, the merger’s impact will ultimately determine insurance cost changes for residents based on their location in the county. Commissioner Brent Springer expressed optimism for ratings to improve under the county’s leadership by centralizing resources and potentially expanding fire department infrastructure as the county continues to grow.
“We’re at the newborn stage,” Springer told Port City Daily. “I anticipate ratings coming down in the next 10 years if we are able to build more fire departments and provide a closer service to our citizens.”
ISO ratings are designated to each fire district through an evaluation of a community’s fire-suppression capabilities. Specifically, the ISO rating assesses three main areas: the fire department (including staffing, equipment, and response capabilities), the water supply, and emergency communications. To Springer’s point, adding more fire stations would improve ISO ratings since citizens would benefit from closer proximity to services, leading to faster response times and better protection.
Fulton said, based on conversations with the North Carolina Fire Chief Consulting and the Office of the State Fire Marshal, effects of the merger on ISO ratings would be minimal.
During a May 19 meeting, Pender commissioners approved a $35,000 purchase order for consulting group North Carolina Fire Chief Consulting to mediate and assist EMS and Fire staff and county management come to an agreement on a formal plan. NCFCC intends to provide a minimum of eight on-site meetings and five virtual meetings.
The decision to bring in NCFCC was prompted by attorneys with Fox Rothschild, part of EMS and Fire’s legal team. In an April letter to former County Manager Michael Silverman, they requested the county pause progressing with the merger until formal contract, bylaw, and legal discussions occurred, and a transition agreement was finalized.
According to Gregory Grayson, representative with NCFCC, the group has worked with municipalities and nonprofit organizations with mergers across the state. Grayson said they typically begin the merger process by helping leadership from both sides reach a joint resolution on significant issues, then guide them through task lists to make the merger a reality.
Springer said bringing on an unbiased party like NCFCC will help “steer the ship” as the merger moves forward.
“None of the commissioners that I know of have been through a merger of this size,” Springer said. “Obviously, we’re not looking to fail, and we’re not looking to have the employees looking at us like we’re failures either.”
County management and a NCFCC representative held their first formal meeting on June 2. According to Blue, all parties are on the same page for the next steps in the merger process, which include a meeting with all stakeholders and defining a memorandum of understanding to define common goals.
Addressing shared goals, Chair Randy Burton highlighted a primary objective is to provide EMS and Fire employees with long-term stability.
“The big goal in this is, I think, the employees of the county should establish roots here and have a career and a life here, not just to bridge a gap and a job to get hired somewhere else for more money,” Burton stated. “We need folks to plant roots and to work here and to be proud to work here and serve our citizens.”
Emphasizing the urgency of the merger, Burton pointed to the county’s rapid growth and the need to proactively shape the future of emergency services.
“This is the second fastest growing county in the state and one of the top growing counties in the country,” he stated. “It’s time we quit kicking that 20-year can down the road. We all agree it needs to happen, but let’s do it. I think the citizens, once they understand the benefits of this, will gladly stand behind the men and women with fire and EMS.”
Commissioner George interjected: “I think they already stand by them.”
“Was that a question?” Burton asked.
“No, that was a statement,” George replied.
The draft merger plan is set to be published for public review ahead of the next commissioners’ meeting on June 16, with the aim of finalizing a legally binding merger agreement by the end of 2025.
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