CUMBERLAND – Northfield Foundation For Eating Disorders, Inc., a supportive transitional home for women struggling with eating disorders, was unanimously denied tax-exemption during the November Board of Supervisors meeting. Though several board members expressed their support of the ministry, concerns about setting a precedent for other non-profit organizations to request tax-exemption were raised.

During the board meeting, Crossroads Community Services Board gave a presentation regarding its services and annual budget, discussing its rationale for paying local taxes although it is a state agency.

Although Northfield is a 501(c)3 organization that is exempt from federal taxes, it is not exempt from county property taxes because it is not an organization type – such as a church or library – that is automatically considered exempt in state tax code. Individual localities determine which other nonprofit organizations they will designate as exempt.

The property in question was purchased in 2006 for $1,600,000 and is currently assessed at $1,463,460. It includes just under 50 acres, a large house, a smaller cottage and several outbuildings. The total taxes for the property in 2012 were $9,951.54.

The opinion of Kevin Ingle, District Three, was representative of the board's discussion of the request. He expressed his support of the ministry, saying it is “moving toward something that's going to be really great. I'm sure. I can see it coming.”

However, he was afraid that if the tax-exemption request was approved, it “sets precedents for other organizations in the future, whether they are near as rewarding as yours or as needy as yours. They would have the same opportunity to request the same.”

He concluded that there was a lot for the board to look at with Northfield's request since this was the first request of its kind that they have ever had to deal with.

The ministry submitted a conservative estimate of revenue that has entered the county due to the large number of volunteers that have visited the ministry in the past. The ministry estimates that it has brought 3,000 additional visitors to the county over the last five years. An annual economic benefit of $20,000 was estimated yearly.

The request submitted by Northfield asked the County to “consider pro-rating our tax rate either to the portion of land which has the house and other improvements on it (approximately 20 acres – 40% of total) or on the open farm land (approximately 29 acres – 60% of total). We will be grateful for any tax break the county extends to Northfield.”

The Executive Director of the Northfield Foundation, Gwen Seiler, stated during the public hearing that even a grace period would be helpful, reporting that the ministry had been open a little less than a month and the start-up phase was “extremely difficult” since they were beginning to pay staff and market the facility.

Barbara Hinton, of Cartersville, also commented during the public hearing. She stated: “My husband and I are on a fixed income. Northfield Foundation wants to be tax-exempt. Their property is valued at $1,463,460.

“If they can't afford the taxes, they should think about selling off some of their property. They chose to move here, just like my husband and I did.

“The property values in this county are about to be reassessed, again. I don't want my taxes to go up while Northfield wants to be tax-exempt. Thank you.”

Upon further questions from the board, Seiler stated that the ministry is designed to “break even” with six women residing there. The charge for residents is currently $250 a day, which covers room, board and staffing needs. The facility can house a total of 12 women. Seiler also reported that there were currently no residents, although she had been in communication with several interested parties.

When asked if there were any employees who resided in Cumberland, Seiler responded that there was one employee who lived either in Buckingham or Cumberland, but she was unsure which. She stated that she would like to hire Cumberland employees, adding that the ministry had tried to advertise for employees in the area, although they did not receive much response.

According to Seiler, the ministry is currently behind on its taxes. She stated that they are still paying the first half of this year's taxes in monthly installments while accruing one percent interest.

She also thanked the board for its support so far and their interest in even pursuing the idea of tax exemption with Northfield.

Tax-Exemption Concerns

Despite his enthusiasm about the ministry, Ingle stated that he had two concerns about granting tax-exempt status. He stated that concerns had been brought to him by constituents that were similar to the public comments made by Hinton: county citizens did not want their taxes to be raised while Northfield is made exempt. Also, he was afraid of setting a precedent for other organizations to apply for tax exemption.

Bill Osl, District One, asked Seiler, “What happens if we do not approve exemption?”

Seiler stated that if donations did not come in, she and her husband would work personally to try to find the needed money, adding “when you believe in something enough and you know you are supposed to pursue it, you're willing to sacrifice.”

She stated that even a grace period of a few years would be helpful as the ministry establishes itself, concluding, “we just need help. We want to do something that is going to benefit this community, not hurt it.”

Lloyd Banks, District Two, asked a question that he said was based on some of the concerns he had heard from the community: “Why did you choose such an elaborate facility to purchase, if, in fact, you want to use it for a non-profit purpose?

“There's lots of more affordable properties that you all could have chosen to purchase. And you chose to purchase one of the more – possibly one of the most – expensive properties in the county and then come to the County and ask for tax relief.”

Seiler responded that it was a very good question and that her answer was a very spiritual one that she hoped did not offend anyone. She told the board that she has been driving by the property for 25 years and has always felt drawn to it. She felt it was special: “on that property… I don't know how to explain it, but it just feels safe and secure and just very peaceful.”

She concluded that, “I was trying to be obedient to the Lord. If I had known everything I know now, I would have found the nearest bush and would have hidden under it, hoping God would not find me. But, I'm glad on the other hand that I didn't do that… because I have had an incredible journey.”

Ingle commented that he and Seiler had a similar conversation four years ago and her response was the same then as it was now.

Parker Wheeler, District Five, said he would entertain thoughts of reducing the taxes, but not completely eliminating them. He wondered if there was a way that the board could reduce the taxes or delay the taxes, suggesting the County attorney would have to look at the ramifications of such an action.

Ingle suggested that perhaps the board not currently provide any tax relief, but if it did become a service to the community and a source of revenue, perhaps it could be considered, like libraries and fire departments. The board could then give it a donation from the County, instead of tax relief. He reiterated that he didn't want to “open the book on…waiving taxes.”

Osl supported Ingle's suggestion, adding that he preferred the board find other ways to support the ministry without setting a precedent on tax exemption.

County Administrator and Attorney Vivian Giles stated that the County making a donation was a possibility.

Banks moved that the application for tax-exemption be denied. It was unanimously approved.

Crossroads Report

Executive Director of the Crossroads Community Services Board Will Rogers gave a report during the November meeting. Crossroads provides mental health, intellectual disability and substance abuse services in seven counties: Amelia, Buckingham, Charlotte, Cumberland, Lunenburg, Nottoway and Prince Edward.

A state agency, Crossroads was organized in 1973 as a cooperative between the seven counties, with a member of the board appointed by the Board of Supervisors in each county.

Crossroads provides support for those who have been in a psychiatric hospital and intellectually disabled individuals, such as day support, at-home support, summer camps, assisted living opportunities and case management. They also provide support and referral services for those struggling with substance abuse.

Rogers shared Crossroads' annual report, stating that the service provider represents about 18 million dollars of business in the seven counties it serves and also pays over $800,000 to private providers who run small group homes, day cares or provide other services.

Crossroads is required to provide emergency services to individuals in crisis with mental health diagnosis who need an evaluation to get into a psychiatric hospital. In such cases, they often work in conjunction with the sheriff's department.

Rogers spoke very highly of local sheriff's departments in the area. He stated that they have done an excellent job of “knowing how to treat people decently” even though they may not have formal mental health training. Along those lines, Crossroads is also arranging continuing education credits for deputies through the law enforcement academy that will provide more specific training on such issues.

He thanked the County for its support, saying, “several years ago when we were looking at building a couple of group homes, one of the counties looked at us, turned their noses up and said, 'Get out of here. We don't want to see you.' Cumberland County did not and we greatly appreciate that support.”

Crossroads services continues to grow in Cumberland County. They are breaking ground on two four-bedroom homes for high-functioning individuals who are ready to live more independently.

He specifically pointed out that even though Crossroads is a government agency, they still choose to pay taxes wherever they have buildings and programs. Crossroads has chosen to function according to a business model, said Rogers, only running programs that generate revenue. He said this is why so little of their budget is based on local funding.

About 75 percent of Crossroads' revenue comes directly from fees for services. Rogers stated that some board members do not understand why Crossroads chooses to pay taxes even though they are a government agency. He responds that he believes that Crossroads is part of a community and should help build it, besides “the taxes are not onerous. Most of the money that we take in is Medicaid. So, we – just like a private provider – we feel like we own that situation.”

Crossroads has paid in full their 2012 County taxes, which were $9,687.30.

Crossroads has 400 employees. Over 25of which live in Cumberland County with a total combined salary of over $800,000, according to Rogers.

The board was enthusiastic in thanking Crossroads both for paying their taxes and serving Cumberland County.

This year the County budgeted $34,000 in expenditures for Crossroads as a payment to mental health services. This is an increase from the previous three years, when payments were $28,840.

Dr. Griffin's Report

Among other things, Cumberland Superintendent of Schools Dr. Amy Griffin announced that Delegate Thomas C. Wright Jr. would be visiting the high and middle school for Take Your Legislator To School Lunch on November 28. She welcomed the County staff, administration and board to join in the lunch and tours of the schools.

She reported that Educator For A Day went very well, with County Administrator and Attorney Vivian Giles taking up Griffin's previous invitation to the board and County staff to participate.

She stated that the ROTC students did a great job presenting the service flags at the Veteran's Day Breakfast at the Cumberland Fire House.

During public comment at the end of the meeting, Louis Seigel commended Dr. Griffin for offering the technology classes to the community. Both he and his wife have been attending the computer training courses which are instructed by Elizabeth Jamerson, Director of Human Resources at Cumberland County Public Schools, saying “it is a most excellent course, indeed.”