MINUTES OF THEI MEETING OF THE MAYOR AND THE TOWN COMMISSIONERS OF  BILTMORE FOREST HELD MAY 21,2024  Be it remembered by those that follow these proceedings that the Governing Board ofthe  Town ofBiltmore Forest met and conducted the following business:  Roll call taken by the Clerk:  Mayor George F. Goosmann, III, present Commissioner Doris P. Loomis, present Commissioner Fran Cogburn, present Commissioner Glenn Kelly, present  Mr. Jonathan Kanipe, the Town Manager, was present. The Town Attorney, Billy Clarke,  was not present.  Mayor Goosmann called the meeting to order at 4:30 pm.  The Pledge of Allegiance was conducted.  Consent Agenda  Commissioner Cogburn made ai motion to approve the agenda, the minutes from April 9, 2024, the Proclamation for National Police Appreciation Week, and the Proclamation for National Public Works Appreciation Week. Commissioner Loomis seconded the motion and the Consent  Agenda was unanimously approved.  Public Comment  There was no Public Comment.    ChiefTrevor Lance gave the report for the Skyland Fire Department. There were ai total of 26 calls. There was one windstorm assessment and there were four fire alarms. ChiefLance discussed grill safety and checking your propane tanks for any leaks. Do not leave the grill  unattended. Also make sure your grill is clean and free ofa any debris.  Chief Chris Beddingfield gave the report for the Police Department. Chief Beddingfield thanked the Board for their support oft thel Police Department. Four employees went to Washington D.C. for National Police Week. Chief Beddingfield said it was a wonderful experience. There were 30,000 police officers that attended this event. ChiefBeddingfield said the networking opportunity  was amazing.  There were 784 calls for the month. The camera system is still being installed and working well. Officers had ai multi-agency traffic enforcement operation with Fletcher. There were several  arrests and many guns got taken off the street.  ChiefBeddingfield went to the Chiefs' Legislatures Day in Raleigh. He said it was a very positive event as well. They expressed their concerns about laws and regulations relating back to  law enforcement.  There were al lot of calls about Hendersonville Road and the traffic leading into the' Town. When Hendersonville Road gets shut down, commuters cut through Biltmore Forest and drive too  fast. Officers were patrolling and slowed down traffic.  Commissioner Kelly asked what percent oft the calls received are assisting other agencies. Chief  Beddingfield said about 5%.    Mr. Harry Buckner gave the report for the Public Works Department. Mr. Buckner appreciates the support from thel Board forl National Public Works week. Mr. Buckner said they are trying to acquire a garbage truck and recently got a quote on one. It will probably not be delivered  until February.  The roofon the bus stop has been replaced at the intersection of Stuyvesant Road and  Hilltop. They will also be working on the rest oft the bus stops throughout the year.  The stormwater project at the park should be started soon. The trail project at Brooklawn Park has been completed and signage will be installed with rules. A lot ofpositive feedback has been received. Commissioner Cogburn asked ifal handrail over the stairs going to Brooklawn could  be installed. Mr. Buckner said yes.  Inl May, they have some additional trees that will be coming up along the walking trail. They are doing a heavy right of way clearing from Southwood Road from Brookside towards Stuyvesant (opposite the golfc course). There was a lot ofi material that was going out in the road.  They have taken out almost two brush truck loads from that area.  Public Works is working on a small project in Brooklawn Park at the pond to clean up and  put plant material in this area.  Commissioner Kelly asked about the timeline for the stormwater project and the: road tol be repaired on Stuyvesant. Mr. Buckner said they are starting at Rosebank Park. Mr. Buckner said the  road will bei repaired about halfway through the project.  Mr. Tony Williams gave the' Town Planning report. There were 98 land-use conferences. There were two notices of violations. There were six complaints that were: resolved. There were seventeen plans reviewed and six permits were issued. Commissioner Loomis asked what the criteria is unkept grass and grass being too! long. Mr. Williams said the ordinance refers to it as being "unsightly."C Commissioner Loomis asked if! people are: responsive when Mr. Williams discusses this matter with them. Mr. Williams says most people are: responsive.    Commissioner Kelly said 61 Forest Road has been unkept for a long time. Mr. Williams said last year it was cleared out and then it was sold. Mr. Williams said he has been in contact with the new owner to have it taken care of. Mr. Kanipe said this is something hei is reviewing with the  Planning Commission to make this Ordinance clearer.  Mr. Jonathan Kanipe gave the report for the Town. Regarding the stormwater project, Mr. Kanipe said they have begun stockpiling the pipe in the park. This project will take 180 days to  finish and 210 days for full completion.  Mr. Kanipe said the Tick Reduction Committee met in thel beginning ofMay and went through their purpose and mission. The committee reviewed a "toolkit" concept to continue education of various options to enable homeowners to: make choices. They received al lot of information from the State of Connecticut with different options and ways to proceed with tick reduction as well. The committee is going to meet again in June and have ai much more: in-depth  discussion.  Mr. Kanipe said the Town will be having a blood drive in conjunction with the Blood Connection in the social room tomorrow. Also, due to a conflict, the Board will move the June meeting to Tuesday, June 4th. This will be the Budget Public Hearing. This will be noted on the  website and the listing will be amended in the Citizen Times newspaper.  NEW BUSINESS  Consideration of Resolution 2024-04-A Resolution Adopting the Town of] Biltmore Forest Local Water Supply Plan. Commissioner Loomis moved for approval of Adopting the Town of Biltmore Forest Local Water Supply Plan. Commissioner Kelly seconded the motion and was  unanimously approved.    Mr. Kanipe presented the Recommended Personnel Policy Amendments. The' Town began an implantation schedule and overview ofn needs regarding personnel policy amendments at the Board of Commissioners meeting in November 2023. At many places, revising a personnel policy is outsourced, but this was done in house by several staff. There was al lot of good discussion and feedback from employees about thei revisions and what they would like to see: ini the updated personnel policy. Our first all-staffmeeting was in February to gather feedback from staff on things they liked or disliked about the existing policy. The second meeting was held after the draft policy was completed in April with the purpose ofreviewing what was recommended for amendment and  once again gather employee feedback.  Mr. Kanipe the top items staff appreciated are salary, health insurance and benefits, good  working conditions, flexible work hours, pension and 401(k), and their co-workers.  The focus for primary future benefits are changes in vacation accrual, Town offered personal days, fitness plan reimbursement, employee recognition, and increased employee events.  The proposed changes to the personnel policy is the vacation accrual. The: new schedule beings increased accruals after year 2, not year 5. An example would be at year 5, an employee would get 13 days of vacation under the new policy and currently has 10 days under the existing  policy.  Mr. Kanipe discussed the longevity pay idea for thej personnel policy which is a new policy  created to reward retention and length of service with the Town. It would be paid on the anniversary for each employee annually. Commissioner Kelly said the language is confusing in Section 14 oft the policy and he would like to see the language in this section clearer. Commissioner Kelly said he would like to see different language used where it states it is subject to board approval depending on1 the financial conditions oft the Town. Commissioner Loomis suggested language be changed to "subject to financial stability," or "subject to financial conditions." Mr. Kanipe said they can definitely work on the language and change this wording.    Mr. Kanipe also said they would like to create a compensation time policy. Employees may carry up to 401 hours for use and comp time must be used prior to June 30th each year or paid out as overtime pay, with the exception employees may choose to carry 12 hours past June 30th. This  would not apply to exempt employees.  Mr. Kanipe also said aj paid family leave policy would also be included since we are not an FMLA employer and do not have any FMLA requirements. This new policy would provide up to four weeks of paid family leave for "the birth and bonding with ai newborn, bonding with a newly placed child for foster care or adoption and to care for a child, spouse, or parent with a serious health condition. ." This may also be used in conjunction with sick/vacation leave.  Tuition assistance would also be included and has to be applicable to the employee'sjob and must be approved by the department head. Tuition, registration, fees, lab fees, and student fees are eligible expenses. Employees may be reimbursed 50% ofe eligible expenses up to a maximum of  $4,000 per fiscal year.  We also looked into aj partnership with the YMCA of Western North Carolina for employees. Thei most likely amount oft the subsidy would be $30/month per employee.  We also allowed 8 hours of personal day usage which has to be approved by the department head. Billy is also reviewing this personnel policy sO we can have this approved for thei meeting in June. Commissioner Loomis said these are great changes and improvements for' Town staff.  The next item inl New Business is aj presentation by Ms. Megan Powell and Ms. Alison Alexander from WithersRavenel regarding the Biltmore Forest Water Rate Study. The Town of Biltmore Forest has purchased water from the City of Asheville for many years. The Town is charged a wholesale rate from the City of Asheville due to the volume of water needed within the  Town.    The significant increase with the City of Asheville water rates required the Town to look into our water rate structure and work with consultants to perform a detailed analysis and provide recommendations. Ms. Powell is presenting their findings from the study and discussing  recommendations for the upcoming fiscal year.  Ms. Powell said revenues have increased by an annual average of3.8%1 between FY 2019 and FY 2023, partially due to rate changes. The revenue rate increases have allowed the fund to keep up with expenses, increases, and inflation before accruals in the study period. Unrestricted Net Position was $576,291 or 729ofexpenditures in the FY 2023 audit. This is a good position to  be in ofa fund this size. There is no outstanding debt.  Revenues have increased by 3.8%. The fund has been healthy the past couple of years. The water costs are comprised of four costs which are the volumetric at $1.23 per ccf, the capacity is $77,280 per year, the base: is $7,713 per year, and the pickup is $1,004 per year. The  Asheville water projects volumetric rate to increase to $2.89 per ccfby 2027.  The approved assumptions are there will bei no water usage growth. The treated water costs increase by an average annual rate of4 4% after FY: 27. The operating expenditure increases by average annual rates of 4-6%. The unrestricted Net Position exceeds 75% of] Budget by FY 2034. They have proposed a few different alternative rate structures. There are currently 807 water customers, of which 799 are residential. 321 customers use a 5/8" meter and 330 customers use 1" meters. There are 148 irrigation users. The average bi-monthly usage is 9.980 gallons. Nearly 72% ofresidential customers use 10,000 gallons or less every two months. The fixed charges yield  $147,487 and the volumetric charges yield $367,000.  The first proposed rate change is to vary the base unit charge which is the fixed charge on thel bill. This is for non-residential meters greater than 1". The charges increase by factor oft the maximum meter flow. This is the best practice to push costs of potential greater water demands to  those individual customers needing more capacity.    The second proposed rate change is toi reduce the number ofr rate tiers down to three tiers. Most customers fall int the 0-5,000-gallon tier. Both of these options together total $689,000 in revenue and is based on current usage patterns. The proposed water rates were outlined, showing a five-year study. This would propose an 8% annual increase in water revenues. This would turn into  a 9% rate increase.  Commissioner Kelly asked ifany water suppliers such as the Town or Asheville ever increase their rates by 9% a year. Ms. Powell said 9% is low from what we are seeing from other studies. The City of Asheville is increasing their water to 33% each year for the first three years. Mr. Kanipe said Asheville did their rate study in December and their consultant suggested they begin passing their increases on the wholesale: side. Iti is important for us to make changes that represent what we are, going to bej paying. Mr. Kanipe said for the residential users for next year the big increase is $90 per year. From WithersRavenel standpoint it was important to have some stable revenue coming in from those fixed meter increases. Commissioner Loomis thanked Ms. Powell  forj presenting this information.  Mr. Kanipe presented the proposed Fiscal Year 2024-2025 Annual Budget. Thete total General Fund Revenue projected for FY 24-25 is $6,633,697. The Water Fund Revenue is $1,142,795. The Public Hearing for the Budget will be on Tuesday, June 4th. One penny on the Town's tax value brings in $88,181. This is up a littlel bit from last year. We have a very high tax collection rate of 99.89%. This Budget does not propose any tax rate: increase SO the proposal  would be to: remain at .345.  The Sales Tax has leveled offa and we are still doing well this year. 2% over current year amounts. We have revenues coming in from that as well. The utility taxes continue doing well and SO are investment earnings. There were: noi intergovernmental loans for the coming year. Wedo have one existing loan from the Department of Environmental Quality for the stream restoration project that isi included within our debt service. The Powell Bill went up al little bit from last year to about $75,000. This is scheduled to go up al bit more but the League ofMunicipalities believes  there is potential that the Legislature will curtail that increase.    There was an increased Zoning Permit Revenue this year and a significant number of  residential remodels and significant work on the commercial side.  The Fund Balance. Appropriation last year budgeted approximately $1.2 million for the stormwater project. Because that project has not begun construction yet, we are, going toi roll that fund balance allocation into next year. We currently have 75% of the total General Fund Balance, which is much higher than our Town Policy of20-35%. We arei in great shape financially: right  now.  Regarding the General Fund Expenditures. We do our best to tie the Cost-of-Living Adjustment (COLA) to what the March CPI is. Last year the Board approved a 5.8% COLA for all employees and this year, Mr. Kanipe: recommended a 3.8% COLA which is in line with CPI in March of2024. There will also be a Merit pool which within each department is 2%.  Regarding the funding of the Personnel Policy, the Longevity Pay Program would cost $14,250. The YMCA subsidy would cost $12,000. This is all accounted for which is int thel Budget.  Our healthcare plan remains the same. The increases are not known yet because that information is not released until October. We generally budget for at least a 5% increase. There are no changes in the vision and dental insurançe. The Local Government Employee Retirement System (LGERS) will have another increase of0.75% for non-sworn employees. This takes this to 20.28% for FY 25. Regarding Law Enforcement employees, they will have a contribution of 21.72% to their pension. This goes into the retirement system and those rates are: mandated by the State ofNorth Carolina and the Board that governs them. The Town would also provide a 5%  401(k) plan for all employees.  Mr. Kanipe said the Police Department has allocated with Enterprise two new vehicles in the coming year. These havel been ordered. Officers are also receiving new service weapons this year. Next year, they will be looking into ordering new: rifles for them as well. The Flock security camera program was also approved. That first year's cost is about $48,000 and this is included in  the Budget as well.    Mr. Kanipe said Public Works is continuing their improvement with parks throughout the Town. This funding has predominately come from the. American Rescue Plan funding. Greenwood Park had major improvements, Brooklawn Trail was created, and part of Rosebank Park is having work done. This funding expires FY 26. We need tol have it obligated by December 2024. We should also have it all spent by December 2024 with the addition oft thel bridge as well as the trail in Greenwood Park. Thel benefit to the Town is that it is five cents on our tax rate, and we'vel been  able to utilize it for park improvements solely over thej past several years.  Mr. Kanipe said the Street Department has the large stormwater project that will begin this  month. This will go into most halfo oft the fiscal year. We also have funding for additional engineering ifnecessary for all stormwater projects. The roadways will be milled and resurfaced and that's all included in the budget for that project. We also have our continued striping program  that the Town adopted last April.  Regarding Sanitation and Recycling, we'vel been looking for thej purchase oftwo new garbage trucks. The Town does not charge any solid waste fees. Our fees account for 6.63 cents on  the tax rate. Our brush and leafremoval is also included in with this.  In General Government, we still have $260,000 in Contingency Funding. This is for land acquisition as wei move forward in discussion with facility needs and architectural services.  Ini terms ofl Debt Service, the' Town is in great shape. The only remaining debt service is for the Public Works renovation in 2019 and the stream restoration loan wel have from the State.  As Commissioner Loomis mentioned, Mr. Kanipe said' Town staff will need to let residents know how and why we are increasing the water rates. The overall Revenue increase based on those charges generate an additional $175,000 from the base unit charge and the volumetric increase. In subsequent years, the Town would generate an additional $55,000 in 2026 and $114,000 in 2027  which follows along with the City of Asheville increases.    There is no direct funding for Police Department and Public Works Department projects  because we will move this to a Capital Project Ordinance.  Mr. Kanipe said the' Town isi in terrific Fiscal condition and wel have a great Fund Balance and a terrific tax rate relative to other Local Governments. We also provide a very high level of  service to our residents.  Commissioner Loomis said ini regards tot the Proclamations for the Police and Public Works, they are very appreciative of all the hard work all oft them provide with excellent service to  the Town.  The meeting was adjourned at 6:15 pm.  The next meeting is scheduled for Tuesday, June 4th, 2024 at 4:30pm.  ATTEST:  daua acrbe  vhomam  Laura Jacobs Town Clerk  George F. Goosmann, III  Mayor