231  Dunn City Council Special Meeting Tuesday, April28,2022 6:00 p.m., Dunn Municipal Building  Minutes  PRESENT: Mayor William P. Elmore Jr., Mayor Pro Tem Dr. David L. Bradham, Council Members J. Also present: City Manager Steven Neuschafer, Assistant City Manager Mathew Boone, Finance Director Jim Roberts, Public Utilities Director Heather Adams, Chief of Police Clark White, Police Major Cary) Jackson, Planning Director George Adler, Parks and Recreation. Director Brian McNeill, Human Resources Director Connie) Jernigan, Librarian Mike Williams, Communications Coordinator Kaitlin Adkins and City Clerk Tammy Williams. Mayor Elmore opened the meeting at 6:00 p.m. and Council Member Gaulden gave the invocation. Consider North Carolina Environmental Management Commission: Special Order by Consent (SOC) Public Utilities Director. Adams presented the draft SOC agreement between the City of Dunn and the North Carolina Environmental Management Commission. The City was placed on a sewer moratorium in! May 2021 due tol Inflow and Infiltration related to sanitary sewer overflows and flow exceedances at the Black River WWTP. Council has approved funding for various sewer improvement projects that will reduce inflow/infltration: and sanitary sewer overflows. The SOC encompasses the approved projects and allocates new wastewater flow tot the City initially upon SOC execution and as eachi identified project is completed and accepted. The eight projects arei identified in the SOC and once each project is completed and certified, the State will release specified amounts of flow with total allocation tol be released for life of SOC of 1.5 million gallons per day. Staff also requesteds some upfront allocation. Once SOCi is completely executed the State will release the initial allocations. Penalties were negotiated for a settlement amount of $15,063.69 out of the After discussion, motion by Council Member Sills and second by Council Member McLean to accept the conditions set forth in the Special Order by Consent and authorize the City Manager to execute the SOC agreement on! behalf of the City ofI Dunn. Motion unanimously approved.A copy of the SOC is incorporated City Manager Neuschafer reviewed the draft procedures and process for allocating sewer taps. The City of Dunn has made significant public investment in improvements and increased capacity to the City's wastewater (sewer) treatment facilities to support future growth and to ensure adequate collection and treatment of wastewater. Recognizing that the capacity of the treatment: and disposal facilities is finite and adding additional capacity is expensive, this Wastewater Allocation Policy is proposed to direct growth to areas most appropriate for the efficient provision oft the City's wastewater service while also establishinga a framework for tracking this limited resource. This policy is to effectively allocate available wastewater capacity tor new developments asar means ofr main-ainingareasonable balance ofl land-uses inaf fair manner. This Policy sets out a process to award points for use and design standards proposed by developers and investors. More points are awardedi for desired land-uses such as) Job Creation, Entertainment and other uses promoted in the Imagine Dunn Vision Plan. Points will also be earned for the overall design of the development, including! but not limited to: housing constructed with materials that extend thel life oft the home and enhance the overall look of the neighborhood. Incorporating sidewalks, greenways, trails and transportation enhancements in and around the development will also earn additional points. This cannot City Manager Neuschafer and Finance Director Roberts presented the initial draft budget for review and discussion. Neuschafer told Council there are still some things up in the air such as the property tax revaluation. We have received the proposed tax levy, which is abouta2 25% increase over last year. Iti is too early to count on that number before all adjustments have been done. He explained how the total revenue was calculated and that the current tax ratei is 50 cents. The rate usingt the budget without evaluation would be 44.9 cents or 45 cents equivalent tax rate(revenue neutral budget), which has tol be published with the budget ordinance. He reviewed the other items that mostly impacted the budget such as Health Insurance, Salary Study, COLA and Merit raises, Requested Staff Positions Public Works, Police, Finance, Water and Sewer, Stormwater Fees, Water and Sewer Rates and Solid Waste. He further reviewed the various construction projects related tos Stormwater, Paving, Public Services Complex, Firing! Range, Park to ParkTrail and Wayfinding. Hes sharedt thatt the City, through SEPI,i ist tryingt to putt together aj partnership with NCI DOTf for paving projects andt thel Parkt tol Park Trailt tol help reduce costa and attract contractors fort the projects.  Wesley Sills, April Gaulden, Frank McLean, Billy N.Tart, and Chuck Turnage.  CALLTOORDER/ ANDI INVOCATION Afterwards, Council Member Tartledi int thel Pledge of Allegiance. ITEMSI FORI DISCUSSION, AND/ORI DECISION  water ands sewer operating budget. Quarterly reportinga and updates willl be required.  into these minutes as Attachment: #1.  Sewer Allocation Policy and Procedures- - Review: and Discussion  take place until the completed SOCi isI received. Proposed Budgetl FY2 2022-2023 Review: and Discussion    232  Council Member Sills asked about the City Hall and the Police Locker Rooms. Neuschafer said that the City Halli is currently ont thel backburner and the locker rooms seem tob beal huge expense for ai facility that may be replaced in the next few years. He added the focus is currently on the Public Services Complex. Roberts confirmed that $500,000 was added tot the general fundl lastf fiscal year but we are not anticipating that much this year. Mayor Pro' Tem Bradham askeda aboutt the growth and! Neuschafer said thatitv will definitely help but itwill not be realized for a couple ofy years. Neuschafer added that this budget) has used every dollar of the projected revenue based ont the! 50 cents tax rate. Debt Service and budget changes that willl be presented at the next budget meeting due to the reorganization of Public Works and Parks and Recreation were also The Water: and Sewer Fund whichi isl budgeted on an eight percent increase with growth and fee increase was reviewed. The Eastover project is paid off so that is now just income coming in. He told them about the reserve onc contingency for emergencies ort to add tof fund balance. Hea added that the enterprise funds should bes self-supporting, whichi is what we are working toward. He explained how much chemical and other costs have significantly increased. He addedt that the change in fees has been incorporated into the stormwater fundj proposed budget. If Council decided not tor move forward with the new formula, staff would go back to With nof further business to discuss, motion by Council Member Sills and second by Council Member Gaulden  discussed.  the original budget withouti thef feei increases.  toa adjournt the meetingat7:57 p.m. Motion unanimously: approved.  I OF EORPORAITE SEAL  Mayor  Attest:  4  onununalun ATH CAR  Tammy Williams/ GMC, NCCMC City Clerk