TOWN OF COATS Board of Commissioners May 20, 2013 Recessed Meeting May 9, 2013 6:00 p.m.  OFFICIAL MINUTES  I.A ABSTRACT:  A regular meeting oft the Board of Commissioners was held on May 9, 2013 in the Board of Commissioners' Meeting Room at Coats Town Hall. This meeting was reconvened on  May 20, 2013 at 6 p.m. as a budget work session.  II. ROLLCALL:  Mayor Walter Weeks, Commissioner Don Pleasant, Commissioner J. C. Allen, Commissioner Allen Mosby and Commissioner. Jerry Beasley were in attendance.  Mayor Pro-Tem Dr. Linda Robinson was absent.  III. CALLTO ORDER:  A quorum being present, Mayor Weeks called the meeting back to order at 6:00 p.m.  Mayor Weeks delivered the invocation.  Mayor Weeks asked to resume the Agenda. Mayor Weeks asked that we add to the Agenda under New Business Item. C- The Sale of the Property at 237 N. McKinley Street. Report on the opening of the closed bid sale and the board could act ifs sO choose. Resolved, to add under New Business Item C-Sale of the Property at 237 N. McKinley  Street.  MOTION BY: COMMISSIONER ALLEN MOSBY; SECOND BY:  COMMISSIONER JERRY BEASLEY  APPROVED, AYES (4) COMMISSIONERS ALLEN, BEASLEY, MOSBY AND  PLEASANT. NOES (0)  Mayor Weeks noted that for the record all Commissioners were present except the Mayor  Pro-Tem and all voted in the affirmative on that action.  I    Mayor Weeks asked ifa anything else to be added to the agenda. Mayor Weeks added that aclosed session pursuant to N.C.G.S. 143.318 11A, 3 & 6 were on the agenda and that N.C.G.S. 143.318 11A5 to be added to consider property acquisition of262 McKinley Street. Mayor Weeks said for clarification that consideration oft the request had come  from the property owner and asked for a motion.  Resolved, to add to Closed Session N.C.G.S. 143.318 11A5. MOTION BY: COMMISSIONER ALLEN MOSBY; SECOND:  COMMISSIONER JERRY BEASLEY  APPROVED, AYES (4) COMMISSIONERS ALLEN, BEASLEY, MOSBY AND  PLEASANT. NOES (0)  Mayor Pro-Tem Dr.Linda Robinson came in at this time.  IV.NEW) BUSINESS  C.Sale of Property at 237N. McKinley Street  Town Manager Kenny Cole reported the bids for the sale oft the old Town Hall at 237N N. McKinley Street closed at 5:00 p.m. this afternoon, May 20, 2013. There were two (2) bids received, the first being Mr. Billy & Mrs. Margaret Coats of 82N. Zeb Street, Coats, N.C., with al bid of$100,000.00 with al bid deposit as required. The second bid was made by Mr. Harold Dixon, P.O. Box 656, Coats, N.C. ini the amount of$50,001.00 and the Discussion on the condition of the property, work that needed tol be done to the property and what the bids were along with questions about the value oft the property and land Mr. Cole reported the property value is $354,000 and the land is valued at $48,000. The Commissioner Jerry Beasley made a motion to accept the highest bid of$100,000. Mayor Weeks asked for a second and it would put us into discussion. Second by Commissioner Allen Mosby. Mayor Weeks pointed out the importance ofl looking at all Resolved, to accept the bid from Mr. & Mrs. Billy Coats for the old Town Hall at 237N.  required bid deposit as required.  value.  work on the building at this time is estimated at $200,000.  ofour options.  McKinley Street, ini the amount of $100,000.00. COMMISSIONER ALLEN MOSBY  MOTION BY: COMMISSIONER JERRY BEASLEY; SECOND:  APPROVED, AYES (5) COMMISSIONERS ALLEN, BEASLEY,MOSBY,  MAYOR PRO-TEM ROBINSON AND PLEASANT.  NOES (0)  2    V. OLD BUSINESS CONTINUED A. 2013-2014 Fiscal Year Budget:  Town Manager Kenny Cole presented the Board with the proposed 2013-2014 budget. Mr. Cole met with a new health care carrier and our insurance rates are: increasing by 14.4% which is better than last year'si increase of28%. Benefits will be the same with a 2500. deductible per person. Thisi increase in insurance has an additional increase at about $15,000 to be included in the budget. To adjust some oft the cost he split the Deputy Clerk's salary 75% water, 12.5 % general fund and 12.5% solid waste. This would add $2500. to un-appropriated surplus. This is the reason also for the revision oft the budget. Mr. Cole presented the Board with proposed Fiscal Year 2013-2014. Expenditures  by Funds and Departments. (reference #1)  General Fund :  Governing Board - Proposed $49,427:  Legal fees decreased to $8,000. Audit decreased $8300. Increased cost of Christmas Bonus due to the cost of purchasing of the cards. Added Election of $5000. for this year. Unemployment prepay of1 1% included and increase in workman's compensation. Discussion concerning auto gas Mr. Cole shared the uncertainty of gas prices again but kept the same as last year; Proposed $64,800. Capital Outlay; Proposed $3500 to update the payroll system. Cemetery Fund increase $3975. Debt Service USDA  General Management- Proposed $299,962:  $15,018 and USDA 1 (one) year reserve $1661. Police Department- Proposed 393,073(Revised)  Discussion concerning part-time salaries due to the Farmers and Christmas Parade. Chief Hall confirmed the expense needed for ammunition to supply the police department with proper training; Proposed $4,000. Mr. Cole explained that the Chief had requested a vehicle under Capital Outlay however he was proposing purchasing a vehicle through USDA or the Bank. Aftermuch discussion Capital Outlay increased $32,500. for purchase aj police car. Ammunition decreased $2000. and Debt Service decreased  $5056.  GHSP Grant- Proposed $53,862: Increase health insurance and no Grant money.  Mr. Cole explained that thel budget does propose a 2% salary increase for the staff.  3    Public Works - Proposed $119,782:  Street Lights Proposed $52,000 due to increase in Duke Energy. Street Signs increase: Proposed $5,000. Gary states that all signs, street and stop sign must be replaced by 2015 according to NCDOT. Tipping Fees decreased $5,087. Debt Service Principle  forl LeafTruck atl FCB $7,500. Zoning - Proposed $15,650: this but let it remain. Library - Proposed $36,876:  Mr. Cole explained that the Contract Services remained the same. The Planning Board will be working on updating the zoning ordinances. He does not see that we will need  Reduction in Capital Outlay to $1,500. Discussion concerning repairs to building and the present condition ofthe air conditioning. Mr. Cole explained that a replacement of the air conditioning would be around $3,700. Building Repairs increased $2,200. The Board asked Mr. Cole to find the additional money to fix the air conditioning unit in  this budget.  Park & Recreation - Proposed $67,893.  Increased part time salaries; Proposed $7,500. Umpires increased; Proposed $14,000. The Board discussed cutting some of the programs. Mike stated the umpire fees are  increasing per game.  Total General Fund Proposed -S $1,036,525.00  Powell Bill Fund: Proposed $64,500:  Fund reflects the salary expenditures transferred from General Fund. .  Kenny Cole confirmed that all Powell Bill Funds' rolls over to the next fiscal year and  show as reserved funds.  Total Powell Bill Fund Proposed -S $64,500.  Water Fund: Proposed $347,380  Salary increase due to clerk's position that was moved to Water Fund; Proposed $110,241.. Water purchases increase; Proposed $104,000. Included in this budget is Capital Outlay for computer and camera system and our debt service with USDA.  Total Water Fund Proposed - $347,380.  4    Solid Waste Fund: Proposed $186,293.  Waste Industries will increase their rate by 3 percent (3%) the next fiscal year. Mr. Cole said he was not sure about this and they are having a 1% increase that the revenue will off set. Mr. Cole left the tipping fee expenditure for solid waste same as last year; Proposed  $8,000.  Total Solid Waste Fund Proposed-S186,293.  Cemetery Fund: Proposed $6,275 Included increase in street lights.  Total Cemetery Fund Proposed -$6,250  Mayor Weeks asked for ai motion for a 10 minute recess.  Resolved, to take a 10 minute recess. COMMISSIONER ALLEN MOSBY  MOTION BY: MAYOR PRO-TEM DR. LINDA ROBINSON; SECOND: APPROVED, AYES (5) COMMISSIONERS ALLEN, BEASLEY, MOSBY,  MAYOR PRO-TEM ROBINSON AND PLEASANT. Mayor called the meeting back to order at' 7:40 pm.  NOES (0)  Mr. Cole presented the Board with proposed Fiscal Year 2013-2014 Revenues by Discussion about tax base dropped due to the new building, WalMart and the old school The parks and recreation revenues and expenses were discussed at length and different Commissioner Jerry Beasley asked for a motion to be made to have another work session.  Funds.  building not in this budget.  suggestions what to do about the park. Mayor Weeks called for ai motion.  Resolved, to recess meeting to have another budget session.  5    MOTION: BY: COMMISSIONER JERRY BEASLEY; SECOND: MAYOR PRO- APPROVED, AYES (5) COMMISSIONERS ALLEN, BEASLEY,MOSBY,  TEM DR. LINDA ROBINSON  MAYOR PRO-TEM ROBINSON. AND PLEASANT.  NOES (0) know of the date.  Mayor Weeks asked Mr. Cole to schedule for another work session and let the Board  Mayor Weeks called closed session. memory ofl Mark Parrish.  Commissioner. Jerry Beasley asked the Board if we would put a plaque in the Library in Resolved, toj put a plaque ini the Town of Coats Library ini memory ofl Mark Parrish. MOTION BY: COMMISSIONER JERRY BEASLEY; SECOND: MAYORI PRO- APPROVED, AYES (5) COMMISSIONERS ALLEN, BEASLEY,MOSBY,  TEM DR. LINDA ROBINSON  MAYOR PRO-TEM ROBINSON AND PLEASANT.  NOES (0)  Mayor Weeks told everyone that the Girl Scouts had invited them to Coats Baptist Tomorrow night at' 7:00 pm State Representatives David Lewis and Senator Rabin. Mayor Weeks also called meeting to be recessed after closed session, until May 23,2013. MOTION: BY: COMMISSIONER JERRY BEASLEY; SECOND: MAYOR! PRO- APPROVED, AYES (5) COMMISSIONERS ALLEN, BEASLEY, ,MOSBY,  Church at 7:00 pm for food and entertainment tonight.  TEM DR. LINDA ROBINSON  MAYOR PRO-TEM: ROBINSON AND PLEASANT.  NOES (0)  Respectfully Submitted,  agait Siklus MigaletStrickland, Interim Town Clerk  Weeks -  Es  6