280  Dunn City Council Special Meeting- Budget Planning Retreat Friday, February 24,2 2023 8:30: a.m., Beaufort Hotel, Beaufort NC  Minutes Tart.  PRESENT: Mayor William P. Elmore Jr., Mayor Pro Tem Dr. David L. Bradham, Council Members J. Wesley Sills, April Gaulden and Chuck' Turnage. Absent: Council Members Frank McLean and Billy N. Also present: City Manager Steven Neuschafer, Assistant City Manager Mathew Boone, Finance Director Cary McNallan, Public Utilities Director Heather Adams, Chief of Police Cary) Jackson, Planning Director George Adler, Parks and Recreation Director Brian McNeill, Human Resources Director Connie Jernigan, Public Works Director Mayor Elmore opened the meeting at 8:24 a.m., gave the invocation and afterwards led in the Pledge of Allegiance. Mayor Elmore thanked everyone that was in attendance. He shared that both Council Members McLean and Tart were unable to attend due tol health reasons. He welcomed Emily Weaver with The Daily Recorda and allr new department heads. He discussed the advantages oft this retreat reviewing past goals and reevaluating and setting goals for the upcoming years. He then recognized City Manager Steven Neuschafer Sary began the dayl by starting with Pre- Retreat Questions 12 and 2. Council and: staff shared their responses. 1) Whati is onel lessony youl learnedi in 2022 as ane elected official or City representative? Some responses: even engineers make mistake, working together to accomplish tasks for the city and be ofb better service to the residents, importance of working as a team, issues the city deal with are very complicated, communication to the general public is critical, more partners than just locally, growth is difficult anda a challenge in the City ofI Dunn, listeningt to understand is very important, government moves slow, funding isa challenge, tough things happen, priorities are critical, need for recreation is growing, nothingi isi impossible, andy you have tob bef flexible even with the most thought out plans. Some responses: Consensus and direction on the big priorities, keep the big picture in mind (city as a whole), for everyone tol be heard and understood, goals and ideas expressed clearly, clear direction for staff, unified plan, staff pay plan progress, tangible goals like the dog park, and common clear-cut goals. Sarys shared that the City has benefited from state and national funding but he reminded council and staff to not forget about the public-private partnership opportunities. Het then reviewed the objectives oft the retreat. Her related the city government toa at tree. Trunk- toy protect residents and provide for quality ofl life; Branches are departments; Leaves andl Fruit aret thej projects ands services and thel Roots is financing and budgeting. You City Manager Neuschafer presented a short Manager's Report reviewing the goals and achievements from the Council Goals from thel last year and the Imagine Dunn strategies. He reported ont the: successes, progress to-  Dwaynel Williams, Downtown Director Amber Groves and City Clerk Tammy Williams.  Session1 1-0 Getting Started  whoi introducedi thel Facilitator, Chad Sary.  2) This retreat willl bes successful fort the Cityi if:  can'to dot things without the funding. date with: somei items completed. Session2 2- Reflecting Mid-Year Report and] Financial Outlook  Finance Director McNallan reviewed assets, general fund, expenditures break down, debt service and trend analysis. In summary, cash balances and revenue streams remain strong while expenditure budgets are keeping inj pace withi inflation. Infrastructure expenditures and debt issuance ist necessary for future growth, whichi increases the importance of utility cash flow management. Continued monitoring of debt ratios and fund balancesi isi important while: searching for opportunities for grants and low interest loans. Assistant City Manager Boone recognized new director, Amber Groves, and then gave an update on Downtown achievements and goals, including working on transforming the "Caboose Lot" to a small event space and outdoor passive/leisure area. He: also updated on the Duke Revitalization Grant distributing facade grants to sixteen businesses and the upcoming Lucknow Music Festival. Discussion followed on the issues with generators atf festivals and attracting additional restaurants downtown. Mayor Elmore shared aboutt the new venues inc downtown toi include entertainment with food trucks along with thel Butcher's Table. Boone also gave an update ont the Imagine Dunn and some oft the city achievements including the I-95/I-40 Crossroads ofA America Economic Development Alliance regional partnership for job creation. Mayor Elmore updated ont ther rehabilitation project being considered fort the old Magnolia School asj jobt trainingi is criticalt to attracting industry and growing jobs. Discussed impact ofI I-95 construction. Boone talked about Commercial and Residential Redevelopment (CDBG Grant). City Clerk Williams added aboutt the natural redevelopment of the residential areas by the private sector due to the moratorium. Boone also updated on Community Character and Appearance (Downtown, Stewart" Theater, Parks trail) of the city, as well as Marketing and Partnerships (use ofr newl logo and wayfinding). Discussed thei impact of delays due to the NCI DOT on certain  Downtown Development  Imaginel Dunn  projects.    281 Police  Chief Jackson shared the achievements of the police department including enhanced community engagement, employee of the month program, recruitment efforts, CALEA accomplishments and improvements at the Animal Shelter. She shared the need for Automated License Plate Readers at city entrances and the success of these readers assisting police investigations. Projected cost will be $60,000 per year plusi installation cost. She shared success stories associated with these readers in neighboring communities. She also shared the need foral Firing Range Project on' Three Bridge Road especially since the current range site has tol be vacated. We are looking at $250,000 just to do the grading for the site. She shared other goals including Explorer Post, Citizens. Academy, Regional Special Response Team as well asi implementation ofa ani incentive-based wellness program. Bradham asked about the homeless situation and Jackson stated they are working on getting no trespass agreements inj place and also trying to relocate those in need that are willing to go. Bradham also requested statistics comparing are city to area towns. Jackson added that training for school shootings are Planning Director Adler presented the reports completed in 2022 including the Land Use Plan and Map and the Pedestrian Plan Update. He shared the various plans used as reference for his department. Plans guide development while regulations are required. He reviewed the character areas of the land use map, which is based on the Imagine Dunn themes and goals to plan for growth. The Comprehensive Unified Development Ordinance (UDO) is still in draft form and a combined special meeting is planned in March for more discussion. He then reviewed the elements of the UDO. He shared the residential growth in 2022 of 56 units with 14of those beingi infill. Wel have preliminary plats for 203 units between the Village of Ken, Avonlea and Middleton Towns. Goals include implementing pedestrian improvements from the ADA Transition Plan and the Pedestrian Plan including railroad "quiet zones". Other goals include assessing the need for another employee, training and certifications, improvements tot the office and additional zoning amendments related to Airbnbs. Discussion followed on minimum housing enforcement. Sills said that this needs to be a priority  done annually with multiple agencies. Planning and Inspections  and the webj page needs tol ber re-organized to help developers find what they need. The meeting was recessed at 12:05 p.m. and reconvened at 12:50 p.m.  Finance  Director McNallan reported on the accomplishments of the department to include implementation of the Tyler Accounting program, employee self-service portal and staff was able to provide consistent service during staffing challenges. He is also looking at some additional training for staff and also cross-training of staff duties and responsibilities. Goalsi include to optimize grant and government loans for financing, continue toi incorporate Tyler functions, continue toi improve customer relations and communications and assist other departments inr meeting their goals. There isac delay int the Audit and hei is hoping that it will be presented at Director Williams reported on accomplshments including 174 open/closed graves in the three cemeteries, sold 128 burial plots, updating guidelines at shelters, clearing storm ditches and storm drain pipes along railroad tracks, repaired 59: street cuts, 368 low limb trimmings, filled over 168 pot holes, repaired 51 signs, restriped city-owned parking lots, cleared 75 storm drains and multiple storm drain ditches. Goals are to clear and maintain storm ditches, unblock and repair storm drains, replace damaged concrete storm drain covers, cross train street crew and create a preventativei maintenance program for the Cemetery's equipment fleet. Discussed ESP study, which was just completed and plans to address those blockages. Mayor Elmore questioned if contract labor should be used to assist with all these storm drain blockages. Williams also confirmed that there are plans to start using the paver but stilll have some training needed. Director. Adams reviewed completed projects including the Elm and Bay Street Waterline Replacement, 14-in Waterline abandonment project, EWake Water Replacement: and the Juniper Creek Outfall 21-inch rehabbed. She also shared a list of projects completed in-house by staff, which was in addition to their normal duties. Goals are to update ordinances to deal with private side inflow and infiltration, hire additional staff for sewer line inspection and repair, project management location, implement system development fee schedule, inventory entire system which is required by EPA, and implement a Pre-treatment program for the WWTP. She reviewed additional goals: secure funding for Love's force main upgrade, abandon champion LS and gravity flow, install meter vault on Ammons Rd, replace bulk contract meter, revisions to Chapter 21 of Code, Secure funding for Eastside Pump Station and Force Main project, begin permitting process for the WWTP, Director McNeill reported on accomplishments including the Tart Park Renovation, increase in youth and adult programs, travel ball tournaments, which included 16 tournaments with an estimated impact of $800,000 on the community. Current active projects include Codrington Basketball Court Renovation, Volleyball Court Addition, and updating playgrounds and picnic shelter at Tart Park. Goals include facility updates toi include the Community Center, PK Vyas Center and improving storage. Additional Goals include Johnson Street property, and improvements to Codrington Park. Reviewed park development timeline and trends inj parks and recreation. Turnage asked about the issues with the splash pad and McNeill replied the location of the control panel which has been relocated to another location. Sills discussed the quality of the city's pad compared to area pads and McNeill stated that it would cost too much to renovate and would be  thel March meeting. PublicWorks  Public Utilities  and top planf for Water Treatment Plant- Rehab current facility and addi reservoir.  Parks and Recreation  cheaper to doa ar new one.    282  Special Projects Discussion Public Works Building  Assistant City Manager Boone reported on the background of the Public Works Complex, presenting a rough draft oft the site layout and the Administration building and fleet building layout concept by IBI Group. Staff was thinking about $8 million and IBI didn't even think that would be close and said it would be morel like $417a a square foot, soi it was determined the cost was going tol be too much. Neuschafer added that the city may need tot take one facility ata a time and work ourselves into the total facility. The Administrative officei is Public Utilities Director Adams presented an overview of the major sewer projects: USDA Sewer Rehab Project, SRF Sewer Collection System Rehab Project, CDBG-I Sewer Collection System Rehab Project, Black River WWTP) Improvement Project, Machine & Welding Outfall project, WWTP Effluent Force Main andl Pump Station and the Eastsidel Force Main and Pump Station project- whichl has tol bef funded.. All oft these projects are related to the sewer moratorium. She sharedt the: status oft the SOC and appropriations tot this point. The Assistant City Manager Boone reported that the city contracted with Merje Designs to develop a wayfinding masterplan. He shared the final designs and proposed locations with the total cost for 95 signs at $650,000 plus ana additional $200,000f for ten gateway signs. These signs can be done inp phases so all the expensei is not at one time. Sills said needs to be phased, useful and consistent. Clerk Williams shared about the business City Manager Neuschafer sharedt thei importance oft the: stormwater mapping that has just been completed. He reviewed the proposed: stormwater projects. The city did not get funded but $400,0001 fort thel BRIC funding so Human) Resources Director Jernigan presented the Pay Study Data Results. The City! has a compression issue where people whol have been! here fors several years wherer not! paide equitably to the newer employees, sot they recommend; getting everyone toa a minimum: and add. .5% for every year of employment. The implementation in one year is estimated at $400,000 in salaries only or you could implement over two years. They also compared benefits. Comparable on some benefits but it is recommended to add additional benefits like additional personal days or increase ofl longevity pay. We would need tol have this finalized with a decision by April. She added that we have seen al large turnover basically due to pay. The study also recommends you continue merit and cost ofl living increases. There: are only 30 employees who are wheret they should be outo of Selection of Engineering Firm for the Eastside Pump Station and Force Main Project and Approval to Public Utilities Director Adams presented request to select the engineer for the Eastside Pump Station and Forcel Mainj project includedi int the Special Order by Consent Agreement. Due to cost overruns on other sewer capitali improvements, additional fundingi is needed inc order to complete this project. Since additional funding is needed, staff is recommending that Council select WithersRavenel to complete a funding application to USDA andl bet the engineer ofi record for the Eastside project. USDA providesa4 40-year loan term andl based on the City's medium household income stats, the City qualifies for 75% grant from USDA. In discussions with the engineer, we feel that USDA is the City's best option for grant and loan terms. A USDA application is complicated and takes al lot of effort from both the City and the Engineer. USDAI has seta a deadline ofj June 9to have: ana approved application! before the Federal Office pulls! backa any unused State grant funds. Motion by Council Member Turnage and second by Mayor Pro' Tem Bradham tos select WithersRavenel as the engineering firm for the Eastside Pump Station: and) Force Main Project and to move forward with submitting Assistant City Manager Boone presented request to enter into an agreement with NFocus for code enforcement for the city. With the lack of staffing availability int the city's Inspections Department, wel have reached out tos some private contractors who specialize in code enforcement for municipalities and NFocus has done al lot oft this for other cities and towns, producing positive results. Once onl board, their staff willl be doingi inspections, notifications of violations given to property owners, progress inspections, hearings, city council presentations etc. The: agreement will consist of 3201 hours ofs service, or around 201 hours per month After discussion, motion by Council Member Sills and second by Mayor Pro Tem Bradham to allow the City Manager to enter into an agreement with NFocus Local Government Services from March 1 2023 through June 30, 2024 to perform Code Enforcement services for the City after review by the City Attorney. Motion Sary reviewed the plans of the City such as the Imagine Dunn plan, Land Use Plan, and Vision Statement. He  ther most critical need right now. WaterSewer ProjectsUpdate  SOC wille expire on! March 31, 2027 at which time all these projects need tob bef finished.  Wayfinding Signs  partnerships to dot the twol brick signs andi recommendeda) phased budgeted approach.  Stormwater Projects Pay Study  thep projects willi need tol be prioritized.  120 employees.  ITEMSI FOR DISCUSSION. AND/ORI DECISION  Apply for USDA Funding  afundinga application tol USDA. Motion unanimously approved.  Code Enforcement Agreement  ona average. Total contract costi is $25,305.00  unanimously: approved. Session 3-Priorities  encouraged fitting goals inc one oft the areas oft thel Imaginel Dunnp plan.    283  Reviewed goals andj priorities, focused topics and projects from last year to decidev what tol keep and toss.  Meeting was recessed at 4:39 p.m.  Special Meeting - Budget Planning Retreat Saturday, February 25,2023 8:30a.m., Beaufort Hotel, Beaufort! NC  Mayor Elmorer reconvened ther meeting on Saturday, February 25, 2023a at 8:30 a.m. Council Member Turnage  gavet thei invocation and then Council Member Sills ledi int thel Pledge of Allegiance. Chad Saryl led Council and: staffi inas speed round ofal PEST and SWOT analysis.  POLITICAL 1. State/Federal Regulations 2. Elections 3. Political Unrest/Agendas 4. Voter Apathy 5. War 6. Bureaucracy  ECONOMIC 1. Availability of grants 1. Poverty 2. Cost of Healthcare 2. Social Media 3. Future pandemics 4. Inflation 5. Recession 6. Interest rates 7. Lack ofv workforce 8. New taxes 10. Supply & demand 11. National debt 12. Cost of living  SOCIAL 3. Lack of education 4. 24-hour news coverage 5. NIMBYism 6. Racial conflict 7. Mental health 8. Lack of personal connection 9. Political divisions 10. Crime 11. Drug abuse 12. Aging population  TECHNOLOGICAL 1. Proper education 2. AI 3. High-speed internet 4. Digital commerce 5. Constantly changing 6. Workforce knowledge 7. Reliance on technology 8. Haves/have nots 9. Lack ofp personal connections 10. Effects on health  7. Unfunded mandates 9. Unemployment  STRENGTHS 1. Leadership 2. Networks 3. Community Support 4. Historic Downtown 5. Embracing change 6. Diversei faith background 7. Great staff 8. Available infrastructure 9. Street grid 10. History 11. Vison 12. Land availability 13. Citizens that care 14. 95 Alliance 15. Location 16. Small town charm 17. Park network  WEAKNESSES 1. Construction 2. NIMBYism 4. Community not ready for growth 5. Environmental issues (soils, hydrology) 6. Underutilized buildings 7. Median income level 8. Stingy landowners up with demand 10. Economic/racial division 11. Lack ofy youth activities 12. Outdated facilities choices 14. Lack of quality jobs  OPPORTUNITIES 1. Increase tax base 3. Mores shopping & entertainment 5. Residential growth 6. Infill development 8. School systems 9. PAL program 10. Infrastructur e improvemen ts 12. City investments 13. Localized workforce 14. Location to 95 15. Greenway network expansion 17. Locali investments in businesses  THREATS 1. Unwillingness to accept change 2. Stormwater issues 3. Competition for business/industry 4. Drug addictions keep up with demands 6. Community division 7. Poor self-image 8. Aging infrastructure 9. High paying jobs 10. Railroad 11. 95 constructions 12. NIMBYism 13. Flooding 14. Lack of business friendliness 15. Crime 16. Water plant 17. Traffic  activities along 95 2. Future growth 3. Employee retention 4. Downtown availability  7. Industrial development 5. Lack of budget to  9. Budget not! keeping 11. Remote working  13. Limited shopping 16. Historic character  Sarys said att this point, we need tot take all the information from the city department needs, PEST and SWOT Analysis, Special projects and the goals kept from last year's to determine our goals and priorities for this Discussions followed to determine the goals and priorities along with action items for each of these goals. Discussed developing an Asset! Management Plani for the City maybe by department. Also determined whoi is responsible for moving this goal forward. After much discussion and additional exercises by Council the  upcoming budgety year.  following goals were established.    284  FY23-24 Strategic Planning Projects  GOAL 1: ALLOCATE FUNDS THAT FOCUS ON EMPLOYEE RETENTION & RECRUITMENT  Action Items  Owner Human Resources; Administration Human Resources; Administration Administration: Human Resources; Administration Owner Public Works Public Works Public Utilities Public Utilities Various Public Utilities Owner Public Utilities; Administration Public Utilities; Administration Owner Public Works; Public Utilities Owner Administration: Administration; Chamber Owner Public Utilities; Administration Public Utilities; Administration Public Utilities; Administration Owner  Imagine Dunn Theme(s) (PG) Planning for Growth  Complete pay study & present to City Council. Review policy every five years. Focus on employee care, moral and well-being. Create metrics for rewarding professional devetpmenvcertincaton: Action Items Implement street repair improvements. Invest in stormwater program. Repair/install new lines to plan for growth. Create an ordinance to address private laterals. Create an asset managememnemaintenance plan. Create an action plan to address water plant issues. GOAL 3: WATER PLANT UPGRADES Continue to evaluate alternatives & strategies with Provide a mid-year review to City Council; Council to GOAL 4: STORMWATER: IMPROVEMENTS Prioritize projects from inventory.  Human Resources; (QL) Quality of Life  GOAL 2: CONTINUE TO FUND INFRASTRUCTURE IMPROVEMENTS  Imagine Dunn Theme(s) (PG) Planning for Growth (QL) Quality of Life (BD) Business Development (P) Partnerships Imagine Dunn Theme(s) (PG) Planning for Growth (QL) Quality ofL Life (BD) Business Development (P) Partnerships Imagine Dunn Theme(s) (PG) Planning for Growth (QL) Quality ofLife (P) Partnerships Imagine Dunn Theme(s) (BD) Business Development; (MP) Marketing Positioning; (CC) Community Character; (P) Partnerships  Action Items regional partners. make a decision to act. Action Items made. Action Items review.  Continue to explore areas where improvements can be Administration GOAL 5: CREATE & FUND A PROGRAM FOR PRIVATE INVESTMENT  Complete incentive document: and bring to council to  Continue to seek grants/partnerships for improvements. Downtown, Chamber  Explore redevelopment zone ptions/opportuntes. GOAL 6: WATER STORAGE PLAN Research Agreements with regional agencies. Plan for engineering projects to address. Prepare a final cost estimate for each project. GOAL 7(T): CREATE AI PLAN FOR WELLONS PROPERTY  Action Items  Imagine Dunn Theme(s) (PG) Planning for Growth (QL) Quality of Life (P) Partnerships  Action Items property. Action Items citizen input.  Imagine Dunn Theme(s) (CC) Community Character Imagine Dunn Theme(s) (QL) Quality of Life (CC) Community Character (MP) Marketing Positioning (BD) Business Development (P) Partnerships  Create a Master Plan/Concept Plan for the feasibility of Parks & Recreation (QL) Quality of Life  As part of the process, be deliberate about public input. Parks & Recreation  GOAL 7(T): FUND WAYFINDING SIGNAGE PROGRAM Create a phased plan and present to the council proposed number of signs in each phase, budget and  Owner Administration    285  GOAL 9: PLAN FOR CITY ACIUITES/PROPERTIES Create an asset management inventory & plan. Hire a consultant to conduct a facility's needs Explore options for a new firing range.  Action Items assessment. GOAL 10: FUND Action Items  Owner Administration Administration Police; Administration Owner Planning; Public Works Planning; Public Works Planning; Public Works  Imagine Dunn Theme(s) (PG) Planning for Growth (MP) Marketing Positioning Imagine Dunn Theme(s) (PG) Planning for Growth (QL) Quality of Life (CC) Community Character (MP) Market Positioning (P) Partnerships  FOR PARKS, SIDEWALKS & GREENWAY CONNECTIVITY  Prioritize projects from adopted plans/needs. Research funding to support projects. Continue dialogue with NCDOT.  Mayor Elmore thanked Chad Sary for his efforts and felt that he has done a great job for the past two City of Dunn retreats. He thanked everyone for their participation and asked everyone what they got out of the retreat. Comments were focus on employees, fellowship, developing relationships and working together for the common good, stayed on task, unifies us as at team and allows us tos seet the big picture, presentations from department heads were evidence of the hard work and efforts of staff, appreciates provided direction for staff, focus on priorities, public safetyi is priority, great staff, well facilitated, more focused than past retreats. Mayor Elmore thanked the board for their efforts and their relationship in working together for the City. He added that the City has a greats staff and appreciates their inputi inc developing the goals for the City. Motion by Council Member Gaulden and second by Council Member Turnage to enter Closed Session relating The meeting was reconvened and with no further business to discuss, motion by Council Member Gaulden and second by Council Member Sills to adjourn the meeting at 12:17p p.m. Motion unanimously approved.  toal Legal Matter. Motion unanimously approved. Mayor Elmore recessed the meeting at 12:03 p.m.  CITY Of /CORPORAT SEAL  Mayor  Attest:  APAL  Carnyy AAL Tammy Williams, CMC, NCCMC  City Clerk