154  Dunn City Council Special Called Meeting - Budget Work Session Tuesday, May4 4,2021 1:00 p.m., Dunn Municipal Building  Minutes  PRESENT: Mayor Pro Tem Dr. David L. Bradham, Council Members J. Wesley Sills, April Gaulden, Frank McLean, Billy N. Tart, and Chuck Turnage. Absent: Mayor William P. Elmore Jr. Public Notice, relating tot the Special! Meeting Conditions, isi incorporated into these minutes as Attachment: #1. Also present: City Manager. Steven Neuschafer, Assistant City Manager Mathew Boone, Finance Director Jim Roberts, Public Utilities Director Heather. Adams, Public Works Director Vince Washington, Planning Director George Adler, Chief Building Inspector Steven King, Chief of Police Clark White, Parks and Recreation Director Brianl McNeill, Human Resources Director Anne Thompson, Librarian Mike Williams, Executive. Assistant Connie Jernigan, Communications Coordinator Kaitlin Adkins, City Attorney Tilghman Pope, and City Clerk Tammy Mayor Pro' Tem Bradham opened the meeting at 1:00 p.m. and gave the invocation. He reported that Mayor Elmore is still recovering and wel hope tol have him back soon. Afterwards, Council Member Sills led in the Motion by Council Member Turnage and second by Council Member Gaulden to adopt the May 4, 2021 Status Update and) Discussion oft thel 195/140 Crossroads of America Economic Planning Alliance City Manager Neuschafer shared that the Memorandum of Understanding for the corporation is included in their packet tos give them adequate time tor review prior tot the vote: att ther next meeting. He shared that there isstill conversation: about enlarging the corridor toe encompass: more ofI40i in) Benson. This Alliance would be for economic development ventures, thingst that create jobs. City Attorney Pope verifiedt that by approving the City Manager Neuschafer began discussion by advising Council that staff is in the process of finalizing the extended 4-year contract withl Republic Services. Currently, the Cityi is usingt thel brown cans for limb and leaf debris. Staff was asked to discuss other options with Republic Services. The options shared at the Budget Planning Retreati included placingt the debrisi inl bags and tying with strings. With the possible elimination of debris carts and usingt thel bags and bundle solution instead, the cost will remain the same, however, the city Concerns were expressed about thel limbs and leafs ending up on the street and being washed into the city's storm drainage system, which is why the city started using the carts in the beginning. Council Members Turnage and' Tart expressed the need for offenders tol bet ticketed and fined after warnings. Council Member Turnage also expressed the need to publicize over and over the proper way to use debris carts and toi inform residents that therei is a charge when the city picks yard debris up. Consensus was to stay with the debris City Manager Neuschafer reviewed his budget message to Council and began his discussion on the FY2021- 2022 proposed budget. He reported that with the pandemic there were concerns that the city would experience shortfalls in sales tax revenue, but instead the sales tax revenues exceeded all expectations, breaking records for the city with as much asa a 13 percent increase in one month. He addedt that Ad Valorem Over the pasty year, the COVID-19 pandemic has alteredl lives and the wayt the city governs unlike anyt time in recent! history. Ithasi restricted: movement; access to goods and: services; payment for utilities; resultedi inl loss Although the economy continues to be exceptionally strong, the City is working with state regulators in developing a plan to improve the aging infrastructure related to our sewer collection system. While developing this budget, staff continues to utilize information provided by the NC League of Municipalities. Therei is solid evidence that taxi revenues from our Ad Valorem and our sale taxes will continue tol be strong Planning budget expenditures fort this year are focused ont the City's street resurfacing program and drainage and utility projects, following the direction oft the Council provided att the February budget meeting. There are continued increases in selected fees, some of which are in response to contractor increases. The fees support needed expenditures, ensuring that funds are available to complete the Council's goals, while  Williams.  CALLTOORDER. ANDINVOCATION Pledge of Allegiance.  AGENDA. ADJUSTMENT AND APPROVAL meeting agenda as presented. Motion unanimously: approved. ITEMSI FORI DISCUSSION. AND/ORI DECISION  proposed MOU, the approval wouldi include the: attachments. Discussion concerning: Solid Waste Collection Methods  willl likely saves some contamination: fees ift the choicei isb bags andl bundles.  carts.  FY2021-2022 Budget Work Session  taxes have also comei inb bettert than anticipated: and finished outa at 99%.  ofincome; andi ins some cases,] life.  andj providea a very stablel baset tob build al budget.  continuingt tos supporte employee development: and! keept the community safe.    155  Thej proposed balancel budget forf fiscal year 2021-2022 int the General Fundi is $11,817,950 for both revenues and expenditures. This budget acknowledges that spending by each department is reverting back to pre- Fee increases proposed int this budget include garbage and recycling rate increase of 3%, which is a direct result oft the contractual increase with Republic Services. He also reminded council about the projects not included in the budget: comprehensive community master plan (mandated by the state), parking lot improvements at' Tyler Park, property purchases, stormwater mapping project, wayfinding project, park to park trail, public works building design and construction, along with additional goals set out by council att the The COLA proposed for this year is 3%6. This is calculated using the Federal Register report from the Department of Laborf for the last two years (2020 was 1.6% and 2021 is 1.3%). Last year, the city held this Additionally, the City may award up to a 2% merit increase based upon employee evaluations, effective after January1,2022. Each departmenti isa allocated 1/2% ofits total payroll budget for its merit pool offunds.  pandemicl levels.  retreat.  increase duet to expectedl lossesi ini income.  Highlights oft thep proposed FY 2021-2022. Budgeta are asi follows:  REVENUES: GENERAL  A. Ad Valorem taxes: $3,974,000 projected ona a collection rate of 99.2%, with the tax rate remaining at  $.50 per $100 valuation.  B. C. E. F. G. A. B. C. D. E. F. G. H.  Sales tax: budgeted for $2,515,000, thisi isa2.5%i increase from collections in 2020. Powell Bill and License Tagf fee restricted Fund balances: $350,000 ($350,000 expense built into the Stormwater rate: increasing from $2.75 to $3.50 for Residential and $7.75 to $10.00 for Non-  budget) allocated for the proposed: street resurfacing project. D. Garbage rate: increasingf from $19.801 to $20.40 (3%= = $.60) Recyclingi rate: increasing from $3.70t to $3.85 (4%: =$.15) Bulk] pick up:i increasing from! $4.00t to $5.00($1.00)  Residential EXPENDITURES: GENERAL  COLAi increase: 3%1 fora alle employees Meriti increase: upt to2 2.0%, effective] January 1,2022 401Kd contribution fora alle employees: remains at5% Rooms to Goi incentive:1 budgeted for $240,000  Retirement contribution for state retirement: increases from 10.15% to 11.42% for general Health, Dental, and Lifei insurance cost: premium is calculated with noi increase and held at $6,660 Street resurtacing: $350,000 plus continuation of current work that will carry overi into next budget Possible implications ont the city's growth related tot the sewer moratorium were questioned. City Manager Neuschafer reported that most developments are not concerned because it will be a few years before they will ber readyt tot tapi into the sewers system. He addedt that staffi is working with these developments sot that we Mayor Pro Tem Bradham requested that funds be budgeted for the Community Appearance Committee to givet them the ability toi improve our city'si image with projects such asi interactive murals. He also addedt that he felt a special work session will be needed to discuss directives and funding for the Dunn Vision Plan objectives and with the addition of staffi in the Planning and Inspections iti is vital that the city continue to strive tol be a business friendly community. Council Member Sills expressed concerns on the cost of street lights and the city's fuel costs. He recommended that the cityl look ate electric or hybrid power vehicles for future purchases. City Manager Neuschafer did advise that all the street lights had recently been switched City Manager Neuschafer reviewed the debt service schedule and told Council that depending on how the year ends, staff is looking at paying off 2-31 loans to free up some additional funds for next year's operating Het then moved into the utility budget with thet revenues: and expenditures, both at $7,601,000, for fiscal year 2021-2022. Her reminded council thats staffi is proposing slighti increases each yeari int the rates, sot thei increase willr not! bes SOI much at onet time. He addedt that extral utility revenues are needed tol handle emergency repairs. Propose basic water ratei increase: from $15.25t to $15.701 base rate and ani increasing block rate from Propose basics sewer rates increase: from $14.50 to $15.40 base rate and from $6.36 to $66.74 per  employees and from 10.90%1 to1 12.04% for swornl law enforcement officers Personnel changes: New positions in! Finance, andl Planning: and Zoning  pere employee per year  year.  can gett thati information tot thes state.  overt tol LED.  budget, ifapprovedl byc council.  REVENUES: WATER SEWER  A. B.  $4.651 to $4.80p per 1000 gallons 1,000 gallons    156  C. D.  City ofI Dunnb bulk purchaser rate willi increasel by 5% from: $2.14to $2.25 per 1000 gallons for those Propose Industrial rate user rate increase from: $15.25 to $15.70 base rate and proposed at an increasing block rate beginning at $4.80f from $4.65 per 1000 gallons up to 500,000 gallons; $2.90 He shared that the same increases related to the employees continue for the utility fund. Staffing changes include promotion of one position to Assistant Director of Public Utilities and adding one full time  witha a contracted: minimum gallons per day. They did notg go upl lasty year.  from $2.80 per 1000 gallons above 500,001 gallons.  Geographical Information Systems (GIS) technician.  REVENUES: STORMWATER residential  A.  Stormwater rate: increasing from $2.75t to $3.50 for Residential and from $7.75 to $10.00 for non- Once the stormwater fee study is complete the residential fee should stay the same but the commercial properties willl bec charged per square foot ofi impervious surface. There willl be caps andl limits, of course, but He added that there are major projects in the works for the utility fund and he updated council on grants received with al lot off funding related tot the sewer fund. Major projects are outside the operating budget but Discussion: followed on funds the city will receivef from the Covid relief fund. Finance Director Roberts shared that staff will need tor makes sure funds are spent as directed and a separate fund willl be established sot that With noa additional questions ofs staff relatedt tot thel budget, Mayor Pro Tem Bradham made announcements. Motion by Council Member Tart and second by Council Member Gaulden to enter Closed Session in accordance with [N.C.G.S. 143-318.11(a)(5) to direct staff concerning negotiations for acquisition of real Mayor Pro' Tem Bradham reconvened the meeting and with noi further business to discuss, motion by Council Member McLean and second by Council Member Gaulden to adjourn the meeting at 3:00 p.m. Motion  rightr now businesses pay the samer no matter how muchi impervious surface. will come tot the council for fundingf from fund balance ort throughl loans.  the city can accounti for thee expenditures.  property. Motion unanimously approved. Thei meeting was recessed for Closed Session at2 2:23 p.m.  unanimouslyapproved.  CORPORAT SEAL CARC  Mayor  Attest: dnn Tammyy Williams City Clerk  gKR  Gokian