TOWN OF COATS Board of Commissioners Thursday, March 17,2022 Budget Workshop  The' Town of Coats Board ofCommissioners met in a scheduled budget workshop session on' Thursday, March 17, 2022 at 6:00 p.m. in the Board of Commissioners' Meeting Room at Coats Town Hall.  Members Present: Mayor Chris Coats Mayor Pro-Tem Jerry Beasley Commissioner Allen Mosby Commissioner Kelvin Gilbert Commissioner Shirley Allen Commissioner Marc Powell I.CALL TOORDER  Staff Present: Nick Holcomb, Town Manager Connie. Lassiter, Finance Director/Town Clerk Ken Storicks, ChiefofPolice Rodney Pleasant, Public Works Director Mike Collins, Parks & Recreation Director  A quorum being present, Mayor Chris Coats called the meeting to order at 6:00 p.m. Mayor Coats delivered the invocation and led those in attendance in the Pledge of Allegiance.  RESOLVED, to approve agenda.  MOTION. BY: Commissioner Kelvin Gilbert, SECOND BY: Commissioner Shirley Allen  APPROVED: 5-0, unanimously approved  II. Department Head Operational Budget Presentation  Town Manager Nick Holcomb informed the board that Library Director Teresa Brown was unable to attend meeting and mentioned that the library had previously been discussed, SO the budget should be simple because it will be the same as current year or the same amount will go to Harnett County in a  check.  A. Parks and Recreation (Reference #1) Salaries 10-6120-1260 increase $35,000  Mike Collins, Parks and Recreation Director, stated that now was thet time to decide ift the Town was going to have a recreational program or a part time program, and then addressed the benefit ofa full time assistant director for the department to fulfill the strategies hel had in mind for the recreational program. Mr. Collins conveyed that the fulli time employee would be able to help with mowing, registration, organizing events, marketing and social media. Mr. Collins requested as salary of $35,000 for this employee. Mr. Collins noted that hiring a full time assistant did not mean that he would work any less as it would be his responsibility to support the assistant and  department.  1    Program Supplies 10-6120-2280 increase $5,000  Mr. Collins expressed the need to increase the Program Supplies line item in order to furnish team uniforms and trophies. Hei indicated that currently parents were responsible for providing Mr. Collins suggested that this line item be increased to purchase new tires for the recreation  money toj pay for these items. Auto 10-6120-2520 increase $350 department'st truck due to safety issue. Capital Improvement 10-6120-5100 increase $6.000  Mr. Collins asked to increase this line to purchase gates to cover dugouts and to be able to lock gates at night at a cost of $3,500 and for purchase of water fountain costing $2,500. Commissioner. Jerry Beasley asked if the amount in Salaries (Other) line would be needed ifai full time assistant was hired. Mr. Collins responded that he would need some part time salary for Commissioner Shirley Allen inquired about concession stand. Mr. Collins said there is currently a group that does the concessions for adult softball events, and he feels that after. July 11 that there Commissioner Marc Powell asked ift teams were still being limited for adult softball and did county pay. Mr. Collins said the limit was six teams for adult softball and that the county does not pay for adults, only youth. Mr. Collins noted that during soccer season he would like to allow in-town kids to play for free and charge out-of-town kids $20 as he believes the $28 per kid Commissioner Kelvin Gilbert questioned ifai full time Director and a full time Assistant Director would benefit the Town with all the growth that is coming to the Town. Mr. Collins  help with events.  should bet talk ofo collecting rent from them as they do a very good business.  received from Harnett County would offset.  said that he doesn't think we are there yet. B. Street. Department (Reference #2)  Rodney Pleasant, Public Works Director, mentioned that he had increases due toi inflation for  some lines,  Capital Outlay 10-4510-5100  Mr. Pleasant requested $30,000 for purchase ofai new Ford F-150 4WD truck to replace two older vehicles; a 2004 Ford that has over 100,000 miles with brake issues and in need ofa fuel pump and a 2005 Chevrolet Chevy with 130,000 miles having oil pressure trouble and in need ofe engine soon. Mr. Pleasant stated that he believes the addition of one newi truck would have the street department set with vehicles for a while. Town Manager Nick Holcomb offered that putting the two older vehicles on Gov Deals could realistically bring in $13,000-$15,000 with what used  vehicles are bringing now. .V Water Department (Reference #3) water department.  Rodney Pleasant, Public Works Director, noted that some items increased due to inflation in the  2    Professional Services 60-7110-1990  Mr. Pleasant requested to increase this line to $11,000 to cover the expense of Heartland credit card processing fees. Town Manager Nick Holcomb remarked that this was more ofa an mdministrative/finance change. Mr. Holcomb explained that the Town received a 3% convenience fee from customers that pay water bill with credit card online, but the service charge paid to Heartland had been coming out of the General Fund; ift the revenue is going to Water  Fund, then the service fee should come out of Water.  Capital Outlay 60-7110-5100  Mr. Pleasant requested $70,000 for this line item for the following:  1. Waste Corp $59,423 - Trailer Vacuum Pump for pumping out muddy water while working on water leaks would allow quicker repair and cleaner job site; help with clean up; safer with not having to manually handle aj pump and hoses 2. Core & Main $6,150 - Valve. Exerciser Bat PWR. Head Drive Shaft would allow routine valve exercising in ai timely manner and more efficient record keeping; save: future 3. Core & Main $2,936-T Tapping Kit to assist with water taps will allow' Town to do 2" taps and not call on Harnett Regional Water; this kit can do 3"t to 2" water taps; present  problems and a schedule maintenance tap not working well and is extremely old  D. Police Department (Reference #4)  Ken Storicks, Chiefof Police, informed the board that ai few of the line items went up due to 1. Police Drug Acct Expense 10-4310-1900 upi from $500 to $1,000 doesn't have any budgetary impact as itj just creates amount that can be spent from drug account 2. Uniforms 10-4310-2120 increase of $1,500 to allow for $500 per officer for uniforms; this will allow for a more uniform look for alll Patrol Officers and get rid ofo older, worn 4. Capital Outlay 10-4310-5100 increase of $1,336.06 for purchase ofi new Dodge Durango; quote from Ilderton Dodge for $33,667 on budget request isn't guaranteed for. July nor availability as production can stop again; Kentucky dealership has guaranteed tol hold car Chief Storicks expressed that the police department was at the point ofi needing more help and  inflation and: shipping cost and addressed the following lines:  out uniforms  3. Tires 10-4310-2520 for set oftires needed for truck  for. July 1 at price of $35,796  made the following statement:  The fundamental mission of any Police Department is to protect life and property. The Coats Police Department at times falls short ofthis basic mission. With having one Police Officer on per shift, there are: many times that the Town of Coats is left unattended without a Police Officer. Iti is not at thei fault oft the Officers or the Administration. Itis due to al lack of personnel. Any call or action that an Officer answers or takes may lead to them having to leave the Town of Coats unattended for a period oft time. Some are short, but others may take hours. Now with growth coming to Town and the surrounding areas, Ifeel this is an issue that needs to be resolved with the hiring oftwo additional  Police Officers.  3    Chief Storicks emphasized that the National Average was 2.8 Officers on road per 1,000 population and the State Average was 2.9 Officers on road per 1,000 population; these figures do not count Administrative Personnel. He informed thel Board that the' Town would: need 61 total  Officers to meet these averages; we only have 4 Officers. Chief Storicks pointed out the benefits of additional officers as follows:  Community Safety  0 More Officers on patrol; more patrols; more visibility Greater potential for Officer to be in' Town at all times Calls can be handled safer and more efficient Potentially more time can be spent on a call More opportunity for specialized enforcement Greater ability to do business checks and escorts Officers will be working less hours alone Less stress on Officers and Administration  Officer Safety  Vehicle stops, warrant service, domestic disturbances can be handled with a  better level ofsafety Increase in confidence Benefit for' Town and Officers  Major crimes can be handled safer and more efficiently More opportunity for mentoring younger Officers Greater opportunity for training; potential for more training More opportunity to take vacation Reduction of comp time/overtime Less potential for Officers to run emergency traffic Buffer for turnover of personnel Coverage for extended injury/illness More training and better training for new Officers More opportunity for Officer advancement More opportunity for community engagement Recent Changes That Exemplify The Need Staffing shortages of assisting agencies Shortage of recruits; shortage of quality recruits Potential for more: serious crimes Current and future growth in Town and outside' Town Bari in Town; possibility ofas second Increase oftraffici in and through Town Increased need for accountability  Chief Storicks highlighted the handouts oft the organizational charts oft thel Police Departments of Youngsville, NC and Franklinton, NC citing that those departments are good examples to use for Coats Police Department because of where we are headed with growth. Chief Storicks brought to the attention oft the Board the sheets given to them with the cost analysis ofhiring an Officer at a starting salary ofe either $35,000 or $38,000; both showing breakdown of benefits as well. Commissioner. Jerry Beasley agreed there was a need for what Chief Storicks was asking for; and  (Reference #5)  when we, get Revenue figures, we need to look at it.  4    Commissioner Marc Powell asked if we are on par with similar town salaries. Chief Storicks Chief Storicks concluded with conveying that his focus was not on going up on salaries because ofthe need ofmore Officers, and that his current staff agreed to willingly forego raises because of  stated that we are the smallest, sO we are always last on salaries.  worry: for their safety; proving that they are vested int this Town.  E. General Management (Reference #6)  Town Manager Nick Holcomb noted items in the General Management expense lines as follows: 1. Fuel increase from $37,000 to $45,000 due to the recently rising prices; may be able to 2. Repairs to the building can be cut if needed; it has been used as place holder in past years for replacement of AC units and rooft repairs; keep for emergency fund for buildings 3. Computers - currently renting which is not best option when looking at yearly cost of rent compared toj purchasing; 3 computers are being replaced in the current budget year; Commissioner. Jerry Beasley inquired about updating financial software and the recording system. Finance Director Connie Lassiter expressed that she would like more time to evaluate the current financial software to make sure the right options were presented that would best suit the needs ofthe' Town when upgrading software. Ms. Lassiter stated that she had not experienced any problems with the recording system other than not being able tol hear recording ofj persons not Town Manager Nick Holcomb mentioned thei idea oft tablets for the board to receive agenda to eliminate paper. Mr. Holcomb expressed that it could be a benefit as long as paper agenda packets didn't have to be sent out in addition to using the tablets. Commissioners Beasley and Allen indicated that they liked having paper to make notes. Commissioner Mosby stated that he had previously asked to have the agenda emailed to him to prevent the clutter of paper. Mr.  adjust closer to completion oft budget  looking to replace three computers next year  speaking close enough into microphones.  Holcomb said maybe that could be an option. F. Governing Board (Reference #7)  Town Manager Nick Holcomb noted items ini the Governing Board expenses as follows: 1. Increase the annual salaries to $2,000 for each Commissioner and $2,500 for the mayor 2. Increase audit line item to $12,000; RFPs have gone out and will present to board in April; may have to tweak depending on direction board chooses 3. Legal services remain same; Town Attorney has aj proposal to present about ai flat fee for twol hours every month since hei is coming to at least one meeting a month; this wouldn't 5. Kept Chamber at same amount; leave to board to choose when and how much ofitt to  necessarily increase his total fees 4. No election this year, sO no need to budget disperse based on events  5    Commissioner Shirley Allen questioned the amount in YTD expense for Coats Museum. Finance Director Connie Lassiter verified that it was a typographical error and that the amount should  have been listed as $800. G.P Planning/Zoning (Reference #8)  Town Manager Nick Holcomb requested $100,000 for Demolition Structures mentioning that there are commercial structures on Main Street holding the Town back, but wel have to go by state statutes not what looks like. Mr. Holcomb noted that unsafe buildings condemned in localities, ifita appears to be vacant or abandoned, and it appears to the inspector to bei ins such a dilapidated condition to cause or contribute to blight, disease, vagrancy, fire safety hazards, danger to children, and would tend to attract people with criminal activity or other activities that would constitute aj public nuisance; in terms of the statute we have a case. Mr. Holcomb reminded the board that the' Town has been successful with this for 12-14 residential homes making a difference and expressed that with our Downtown Plan nowi ist the time to discuss this. Mr. Holcomb recognized that it would be al big increase to the budget, but that it wouldn't be coming every: year; and hopefully, we wouldn'thave to spend any ofit; even if we do, it would come back to the' Town at some point in the future in the form ofal lien. Mr. Holcomb mentioned the $8,900 in Outside Contracts was thet third and final installment of Mr. Holcomb stated that next year he may be asking for more to do thel Future Land Use Plan.  contract with N-Focus for the new UDO.  Recess  RESOLVED, to recess the meeting to Saturday, March 19, 2022 at! 9:00a.m.  MOTION BY: Mayor Pro-Tem Jerry Beasley, SECOND BY: Commissioner Marc. Powell  APPROVED: 5-0, unanimously approved Meeting recessed at 7:48 p.m.  Lassiter," Town Ghil  Kk  Clerk  Chris Coats, Mayor  6    TOWN OF COATS Board of Commissioners Saturday, March 19, 2022 Recessed Budget Workshop  The Town of Coats Board of Commissioners reconvened the recessed Thursday, March 17, 2022 scheduled budget workshop session on Saturday, March 19, 2022 at 9:00 a.m. in the Board of  Commissioners' Meeting Room at Coats Town Hall.  Members Present: Mayor Chris Coats Mayor Pro-Tem Jerry Beasley Commissioner Allen Mosby Commissioner Kelvin Gilbert Commissioner Shirley. Allen Commissioner Marc Powell  StaffPresent: Nick Holcomb, Town Manager Connie Lassiter, Finance Director/Town Clerk  A quorum being present, Mayor Chris Coats called the meeting to order at 9:00 a.m.  MI. Capital Planning Presentation A. Capital Planning  Town Manager Nick Holcomb presented the following:  Grant Preparedness  1. Streetscape Master Plan  $2-3M Final approval 4/14  Implementation of! plan will be al home run for citizens and businesses; when  people see something getting done, it helps business Once approved; push State Reps hard for funding  2. Water Capital Improvement Plan  No CIP since 2008; we: need a plan; what are projects; how do they score for  grants; how do they rank Proposed Projects  Delma Grimes & Willis Pope Loop Replacing valves  Replacing AC 6" Patterson, Church, Washington, Jackson streets Poor chance at grants because our system isn't distressed or at-risk system  Need project ready for State Budget requests adequate funds without expert analysis  $50,000 cost to create CIP Plan; Withers Ravenel said not likely to get  Commissioner Jerry Beasley asked if the $50,000 to create CIP Plan would come out of Water  Fund, and Mr. Holcomb responded yes.  1    Mayor Chris Coats asked ift the $40,000 we are getting could be used, and Mr. Holcomb replied that would be a good idea and that he would check to see ifiti is an allowable use. Mr. Holcomb instructed the board that they would need to decide on use of Water Funds between the CIP Plan and the new Vac Truck; and evaluate water system needs in order to develop 5-10  projects that would be the CIP for the next 20 years.  Federal ARP  1. AMI Water Meters  $400,000 already in hand $6,000 cost sharing with Harnett Regional Water Rep from Ferguson still on schedule We willl have to sign contract Eligible project for ARP  Piggyback off) Harnett County; we need to "talk" to their equipment  2. Stormwater Feature  Potentially use 2nd $400,000 for this $50,000 engineering specific site $300,000 detention pond feature  Golden Leaf- Flood Mitigation Program - Up to $250,000 September deadline for more State Stormwater funding  No distressed criteria; more money; more time than waterline projects  Mr. Holcomb informed the Board that ARP: funds have to be under contract by the year 2024 and spent by the year 2026. He explained that we could use. ARP funds on some water lines as  follows:  Replacing 1,800 linear feet of 6" AC line along Patterson and Main and adding Replacing existing 700 linear feet of 6" AC line along Jackson St. and adding Replacing the existing 700 linear feet of3" AC line along Washington St. and  connection to. Brick Mill 6"  connection to existing 12" line along Carrie St. adding connection to existing 12" line along Carrie St Would be eligible for ARP; ballpark cost of $750,000  Mr. Holcomb noted that we. have more eligible on stormwater side than water side; we would have property acquisition involved; we would have to pay for property not eligible for ARP funds; estimated $50,000 for engineered plans. Mr. Holcomb indicated that use for stormwater makes sense, would be worth money and could provide for aj park area if we can pulli it off. Commissioner Kelvin Gilbert agreed ifiti is aj park we can use and notj just for stormwater.  State Budget  1. Building or Grounds  $40,000 approved int technical correction wide open for Capital Project  Building O Library upfit  2    o Old) Public Works shop upfit Landscaping, fencing, picnic shelter  Land  Commissioner Jerry Beasley suggested selling old Public Works shop, sO it can bring inj property tax. Town Manager Nick Holcomb stated that he thinks it should be a long-term plan. Commissioner Kelvin Gilbert asked ifit was the plan to put everything at the current Public Works Building. Mr. Holcomb said ai fence and open shelter would have to be built. Mr. Holcomb mentioned underutilized property of2 acres W Main Street, 0.21 acres EI Lemon Street and old Public Works Shop; now is the time to put on market; we. have to be transparent Mr. Holcomb acknowledged that potential property acquisition ofl acre at Hwy 55 & Hwy 27 (triangle) and 10 acre field on Hwy 27 was no longer an option as both properties have been sold,  with upset bids; could funnel through developers.  but the Old Depot was still available for acquisition.  B. Rates & Fees  Nick Holcomb, Town Manager, explained that we have toj publish a Revenue Neutral Tax Rate in order to say we. haven't gone up on taxes; new property evaluations should go out March 24 and could be significantly higher. Mr. Holcomb noted that the amount ofi increase would be the most Commissioner Jerry Beasley requested another work session when increase of property value is known to decide on cutting tax rate. Mr. Holcomb suggested meeting the last week of April.  important piece ofi information for the Boards' decisions.  C. Salary & Personnel increases:  Town Manager Nick Holcomb highlighted the following points concerning salary and personnel  Need to respond toi inflation; currently at 7% 5% across the board raise As the' Town grows sO will demands on staff 250+residential units 3-4 years until build out Staffi is obvious place for increased revenues  3% 401K match; employee would have to contribute  $1,500/home: x 250/homes = $375,000/year tax increase  Mr. Holcomb informed the board that Public Works is cancelling cell phone plans for employees Mr. Holcomb presented option of using ARP: funds for a one-time employee bonus, Commissioner Beasley asked would it be worth it for all the additional paperwork. Commissioners conveyed consensus for 5% across the board instead.  and looking to roll that savings into employee salaries.  Town Manager Nick Holcomb communicated that the Parks and Recreation Department youth programs are in decline; and although the adult programs are strong and stable, the County does  3    not give reimbursement for adults. Hej presented the board with the questions ofwhat they want ini regards to number of leagues, teams and participants; what are we willing to invest to get there; Commissioner Jerry Beasley suggested getting teachers to help recruit for registration. Mr. Beasley commented that Mike Collins, Recreation Director, should bei informed that ifa full-time assistant is approved andt things do not get better then the next year we will do different. Mr. Beasley expressed ifai full-time assistant was hired that the line item for Salary Other line used Commissioner Allen Mosby voiced that he understands the need for a full-time employee in Parks and Recreation but is concerned over who we will lose in] Police Department if we pay an Commissioner Kelvin Gilbert stated that he was okay with a one year trial for the new: full-time position. Mr. Holcomb suggested creating. job description for full-time Recreation Assistant sO Nick Holcomb, Town Manager, suggested no cost to Town residents to increase participation to have full ball teams and mentioned that finding sponsors for banners at ballfield would bring in Commissioner Shirley Allen offered that 5K runs generate income. Commissioner Allen indicated the need for a strong recreation committee. Commissioner Kelvin Gilbert inquired about the responsibility oft the committee. Mr. Holcomb stated that the committee needs to be  thoughts on proposed full-time employee.  for paying part-time employees was not needed.  Assistant Recreation Director $35,000. that benchmarks to be met are clear.  revenue.  made up of people that are willing to work and recruit: for programs.  D. Streets & Garbage Powell Bill  Town Manager Holcomb relayed that budget based on revenue; $70,000 coming in; spend $70,000; any additional would come from Powell Bill: fund balance. Mr. Holcomb noted  potential streets for paving and patch areas as follows:  Streets  Winchester (poorest condition)  Orange Mason Durane  Remainder of Church (most bumpy)  Patch 15-20 areas where street is degrading (keeps integrity ofs street)  Dip on Hunter Run Settled Areas Breaking Intersections  Mr. Holcomb mentioned that pavement assessment could be paired with water plan.  4    Garbage following:  Town Manager Nick Holcomb informed the Board that expense is going up and presented the  Carolina laste Trash& Mangoment Septie 722 Current? 7A/Rle Bilten#i- 8.25 S.16 Bidlic#3- 4.35 2.98 Customer Total 13.00 11.4  $1.86x900 customer: = $1,674/mo. $1,581x12= $20,088 Commercial Dumpsters $990x1 12= $11,880 Est. Yearly Inc= $31,968  Mr. Holcomb noted that we were losing the: free dumpster benefit; also noted, the customer solid  waste charge of $19.73 breakdown: $2.731 Profit $4.00L Leaf, Limbs, Furniture $4.75 Bi-weekly recycling $8.25 Weekly garbage can pickup  Mr. Holcomb suggested rounding charge to $20 per month. Commissioner Beasley questioned if the $0.27 increase in cost be worth it. Commissioner Gilbert expressed that he did not want to Commissioner Mosby mentioned that people had cans and were not paying. Commissioner Gilbert offered that should be solved with new company placing new cans. Mr. Holcomb stated Mr. Holcomb expressed that we could hold steady on garbage rate as we don'th have to replace  raise the cost.  that we need address oft those people to verify.  knuckleboom this year.  Town Manager Nick Holcomb asked Commissioners for their top budget priority and received the  following feedback:  Mayor Pro-Tem Jerry Beasley Drainage work out  Atl least one new Police Officer Give 5% raise if we can afford  Recreation - go with plan on table; let know will do different the next year ifdoesn't  5    Commissioner Marc Powell Drainage word out Salary - give 5% raise Commissioner Shirley Allen Employee raise Recreation needs One new. Police Officer Mayor Chris Coats Police needs Water survey Employee raise  Police - One ifr not two new) Police officers; new car from Kentucky dealership Recreation - important, don'tknow if we can afford; but need to build program and get  Street - Power wrench beneficial; no to pump, not used a lot  Save money and manage Parks and Recreation better  Commissioner Kelvin Gilbert  Parks and Recreation high on list  Police - no problem with increase of one Officer this year and one Officer the next year  Would like to: see minorities hired in all departments Signage to direct people to' Town Hall, Park, etc.  Raises - yes  Commissioner Allen Mosby equal opportunity Officer; uniforms  Employees - hire employees and look after our employees; hire best applicant as long as Parks and Recreation - gates ifiti is for safety reasons, not to keep people out Police purchase new vehicle, sell old vehicle; need to add two Officers, add at least one Governing Board salary increase - not looking for it, but will take it Planning - Code Enforcement, Housing Enforcement, Demolition  Commissioner Allen asked Nick Holcomb, Town Manager, for his priorities. Mr. Holcomb responded  with the following:  Main Street - Demolition; taking care of problem that should never have gotten sO far More money in Parks and Recreation with thoughts for how we get there Police = don'twant Officers alone at night; start with adding one Officer Stormwater - clear that it is the goal for use of$400,000  Salaries - making fit within budget  IV.Adjourn  RESOLVED, to adjourn the budget workshop meeting.  6    MOTION BY: Commissioner Allen Mosby, SECOND BY: Commissioner Shirley Allen  APPROVED: 5-0, unanimously approved Meeting adjourned at 12:41 p.m.  C1 Connie. Town Lassiter, Clerk  hh Chris Coats, Mayor  7