By Jessie Burchette
Salisbury Post
County commissioners have been repeatedly assured there is no conflict of interest in County Assessor Robert G. “Jerry” Rowland ó who is paid to set taxable values for the county ó also doing private appraisal work in Rowan County.
Other neighboring counties don’t allow their assessor or employees to do appraisal work in their own county.
County commissioners may take a second look after the county has gotten new opinions that doing private appraisal work doesn’t “pass the smell test.”
Rowland, who was recently reappointed to a two-year term, said Wednesday he won’t give up the right to do work in the county unless the county adopts a new policy limiting secondary work of all county employees.
While county officials have repeatedly cited an opinion from the Institute of Government at the University of North Carolina at Chapel Hill, the institute’s specialist in the appraisal field told a Salisbury Post reporter he has never given an opinion that there is no conflict of interest in a county assessor doing private appraisal work in the county where he is employed.
Joseph E. Hunt, a lecturer in public finance and government and a specialist in property tax appraisal, said there is no conflict when an appraiser closes out the books on one appraisal and moves on. He said conflicts occur when an appraiser still has a relationship with the first client.
“The county assessor never gives up the relationship” with the property, said Hunt.
In his 23 years with the UNC-Chapel Hill School of Government, he has never provided such a no-conflict opinion. And since that is his field, any such inquiries directed to the Institute of Government normally come to him, Hunt said.
He said many counties allow the assessor to do private appraisal work outside the county.
Hunt did not address whether the practice is proper or not.
Rowland’s private business, R.G. Rowland Appraisals, apparently employed one or more of the people who work in the Assessor’s Office to do private appraisal work.
Ken Deal, county director of administration, told commissioners at two recent meetings that “we” have checked with the Institute of Government, which said there is no conflict of interest with Rowland’s private appraisal work in Rowan. As recently as last month, Deal told the Post he had checked with the institute.
Asked Tuesday who he or other county officials talked with at the institute, Deal acknowledged he misspoke; he never called the Institute of Government himself, he said. He thought another staffer either called or made the contact through e-mail, but he discovered last week that they did not.
He indicated he based his earlier statements on discussions with former County Manager Tim Russell.
Later, Deal said Rowland and Revaluation Director Barbara Ames McGuire were looking through their files for a letter received 15 to 19 years ago from someone at the Institute of Government.
Rowland said Wednesday his office had an opinion from some high ranking official ó he believed the official was an attorney at the Institute of Government who has since retired, but he couldn’t find a copy. Rowland went on to say that he never saw the opinion, that former County Manager Russell had it.
After discovering the county doesn’t have such a document, Deal subsequently asked County Attorney Jay Dees to search out opinions on the issue.
On Wednesday, Deal cited an opinion from Shea Riggsbee Denning, assistant professor of public law and government at the UNC-Chapel Hill School of Government.
Denning wrote: “Given that the assessor is charged with ascertaining the fair market value of property for purposes of assessing property taxes, the assessor is going to have real problems with his/her professional license if these private appraisals do not match the fair market value established for taxation purposes. Moreover, regardless of whether this amounts to a violation of the conflict of interest laws, I think it creates a terrible public perception issue.”
Deal said they had contacted another expert who said the practice may not be illegal, but “it does not pass the smell test.”
After garnering new opinions, Deal said Rowland’s appraisal work in his own county does not appear to be illegal but still doesn’t look good.
Chad Mitchell, vice chairman of the Board of Commissioners, expressed surprise and concern Wednesday that the county apparently doesn’t have an opinion that the practice is OK. He recalled that the board had been assured at Rowland’s last two appointments that the county had an opinion supporting the practice.
“Several commissioners don’t think it’s a good idea for the assessor to appraise property in Rowan County. It looks odd,” Mitchell said. “I’m sure we can get the problem fixed.”
Mitchell added that he suspects the issue will be discussed at an upcoming board meeting.
Chairman Arnold Chamberlain did not immediately respond to calls from the Post last week.
County Manager Bill Cowan said he did not ask staff members to check with the Institute of Government when the issue surfaced at the June 18 meeting.
Cowan said he went by the letter in Rowland’s file where previous County Manager Russell approved secondary work, including appraisals in Rowan.
During the discussion of the issue last month, Cowan made clear Rowland works for the Board of Commissioners, not him. He said commissioners can put any restrictions they choose on the assessor.
During that meeting, the board voted down a motion by Commissioners Jim Sides and Tina Hall to prohibit the assessor from appraisal work in Rowan. However, Mitchell joined Sides and Hall in saying they preferred that the assessor not do such work.
Rowland said Wednesday that the question is whether the practice is legal or illegal. “It’s not illegal, I don’t know about the smell test,” he said.
Rowland said his company, R.G. Rowland, hasn’t done any work in five or six years, and McGuire doesn’t currently work for him in the private business.
McGuire said she does private appraisal work and uses the software program with Rowland’s letterhead.
“R.G. Rowland is on a whole lot of things. That’s the software,” she said. She hasn’t reported any work for Rowland Appraisals to the Internal Revenue Service in “close to 10 years.”
Rowland said he has done only three appraisals in Rowan County in recent years.
He did provide a letter on R.B. Rowland Appraisals letterhead on March 26, 2006, to support a development by Dan Fisher on High Rock Lake.
The letter submitted to the county as part of the permit process for Sunset Pointe Development related to concerns of neighbors that a planned multi-story open-sided boat storage facility would not lower the values of lakefront homes directly across the road.
In the letter, he cited 35 years of experience in appraising real estate in more than 20 counties in North Carolina and wrote: “We expect Sunset Pointe to be a positive influence on values in the High Rock Lake area.”
Rowland said Wednesday he took a 50 percent pay cut when he came to work for the county in 1991.
Rowland’s current salary is $96,208. In addition he receives a package that includes free health insurance at a cost of $626 per month to the county; contributions by the county of 4.9 percent of salary to his retirement, 3 percent of salary to a 401k fund and life insurance valued at $30,000.
Rowland said he enjoys doing private appraisal work and doesn’t believe the county should try to single him or his department out for limiting outside or secondary work.
He pointed to other potential conflicts of county employees doing secondary work. “If (building) inspectors can do construction work, that would seem like a conflict of interest.”
James and Marian Rollans of Mount Ulla discovered the private work of the Assessors Office when they went to appeal the value set in 2003 on a house on Maupin Avenue, which they had owned for years and were refinancing.
The Rollanses said they went into the room for the appeal hearing and then were called outside by Barbara Ames, now Barbara Ames McGuire.
The Rollanses said she told them she had appraised that property and knew what it was worth, leaving them with the impression they had no chance with their appeal.
At that point, they learned she had done an appraisal for Bank of America when they were getting a loan. Rollans said the paperwork had Rowland’s company as the appraiser.
The Rollanses called neighboring counties to see if their assessors are allowed to do private work in the county and determined it was not allowed.
Steve May, a retired Kannapolis police detective, also raised the issue of a possible conflict of interest with commissioners at a meeting earlier this month. May also raised the issue during the Board of Equalization and Review meeting on the appeal of his property value.
May said a member of the board asked if he thought the County Assessor doing private appraisal work in the county is a conflict of interest.
“I sure do,” May replied.
He has filed inquiries with various state agencies related to the conflict of interest and other tax issues.
Neighboring counties don’t allow their assessors or the assessors’ employees to do private appraisal work in their county.
“It’s never been allowed,” said Joel Mashburn, Iredell County manager for almost 20 years. “It’s not permitted.
Mashburn said he can’t recall the assessor or anyone in the assessor’s office ever asking to do private appraisal work inside Iredell County.
Cabarrus County put in a policy about five years ago specifically prohibiting the assessor or others from doing appraisals in Cabarrus. They can do appraisal work outside the county on their own time.
Cabarrus County Manager John Day said the policy came about during a review of existing procedure, not because of any particular event. Commissioners adopted the prohibition because of the potential conflict of interest and the potential for private work being done on county time, Day said. The temptation to do private work on the county’s time was too great, Day said.
Joe Silver, tax administrator for Davidson County, said he’s not sure his county has a policy, but county appraisers don’t do private work in the county. Silver is both the assessor and tax collector but is not a licensed appraiser.
“When I came to Davidson in 1989, it was word of mouth, ‘Don’t seek outside work of any kind,’ ” Silver said.
nnn
Contact Jessie Burchette at 704-797-4254 or jburchette@salisburypost.com.