THE ERWIN BOARD OF COMMISSIONERS JANUARY 2024 REGULAR MEETING THURSDAY, JANUARY 4, 2024 @ 7:001 P.M. ERWIN MUNICIPAL BUILDING BOARDROOM  AGENDA  1. 2. 3.  MEETING CALLEDTOORDER A. Invocation B. Pledge ofAllegiance CONSENT  AGENDAADVISINMENIS, AFFROVALOFAGENDA  All items on Consent. Agendas are considered: routine, to be enacted on one motion without discussion. Ifal Board member or citizen requests discussion ofo ani item, the item will be removed) from the Consent  Agenda and considered: under New Business. A. Regular Meeting on December 7,2 2023 (Page 2)  4. 5. 6. 7. 8. 9.  PRESENTATION OF FISCALYEAR 2022-2023. AUDIT (Separate Attachment) PRESENTATION OFJANUARYCITIZEN OFTHE MONTH PRESENTATION OFI EMPLOYEE OF THE QUARTER  RECESS FORI REFRESHMENTS INI RECOGNITION OF OUR HONOREES  PUBLIC HEARING A. ZT-2023-006 (Page 8) B. - School Safety Zone (Page 22) PUBLIC COMMENT  Each speaker is asked to limit comments to. 3 minutes, and the requested total comment period will be 15 minutes or less. Citizens. should signt upi prior tot the start oft the meeting. Please provide thec clerky with copies ofanyk handouts you) havej for the Board. Althought the Boardi is interestedi ini hearing, your concerns, speakers shouldi note expect Board action or deliberation ont the subject matter brought up during the Public Comment segment. Thank youj for your consideration oft the Town Board, staf and other speakers.  $160A-81.1  10. 11. 12. 13.  MANAGER'SI REPORT ATTORNEYSREPORT GOVERNING BODYC COMMENTS ADJOURNMENT  "INACCORDANCE WITHADA. REGULATIONS, PLEASE. NOTE: THATANYONE WHONEEDSAN ACCOMMODATIONTO, PARTICIPATE INTHE MEETING, SHOULDNOTIFYTHETOMNCLERKAT9IO,  591-4202ATLEAST- 48. HOURS PRIOR TO: THE MEETING.**    8901  ERWIN BOARD OF COMMISSIONERS  REGULAR MINUTES JANUARY 4, 2024 ERWIN, NORTH CAROLINA  The Board of Commissioners for the' Town of Erwin with Mayor Baker presiding held its Regular Meeting in the Erwin Municipal Building Board Room on Thursday, January 4, 2024, at 7:00P.M. in Board Members present were Mayor Randy Baker and Commissioners Timothy Marbell, Charles Byrd,  Erwin, North Carolina.  William Turnage, David Nelson, and Alvester McKoy. Board Member absent was Mayor Pro Tem Ricky Blackmon.  Town Manager Snow Bowden, Town Clerk Lauren Evans, Town Attorney Tim Morris, Finance Director Linda Williams, Finance Officer Katelan Blount, Town Planner Dylan Eure, Code Enforcement Officer  Chris Jones, and Police Chief. Jonathan Johnson were present. Mayor Baker called the meeting to order at 7:00 PM. Commissioner McKoy gave thei invocation. Commissioner Marbell led the Pledge of Allegiance. AGENDAAD/ISTMENTAPPROVALOF, AGENDA Commissioner Turnage. The Board voted unanimously.  Commissioner Byrd made ai motion to approve the agenda as presented and was seconded by  CONSENT  Commissioner Turnage made a motion to approve (ITEM. A) Minutes of Regular Meeting on December 7,2023, and was seconded by Commissioner McKoy. The Board voted unanimously.  PRESENTATION OF FISCAL YEAR 2022-2023 AUDIT  R. Bryon Scott, CPA came forward and presented the Fiscal Year 2022-2023 Audit for the Town of Erwin. A copy ofthe Fiscal Year 2022-2023. Audit Presentation is attached to these minutes. Commissioner Byrd made a motion to accept the audit report as submitted and was seconded by  Commissioner Turnage. The Board voted unanimously.    CERY  PURLG  Audit Presentation  Town of Erwin Fiscal Year June 30, 2023  R. Bryon Scott, CPA 910-862-8129 bscotttpsacpas.com    :  Table of Contents  Chart presentation  General Fund Revenue Analysis General Fund Expenditures Analysis Revenue Analysis-Fiscal year. June 30, 2023 Revenue Analysis-Fiscal year. June 30, 2022 Expenditures Analysis-Fiscal year June 30, 2023 Expenditures Analysis-Fiscal year. June 30, 2022  Cash Analysis-Five years for General & Capital Enhancement Funds Fund Balance Analysis-Five years for General & Capital Enhancement Funds  Tax Collection Rate. Analysis Property Tax' Valuation Analysis  Required Auditor Communications  Communication of Internal Control Related Matters  Schedule of Findings & Responses LGC Financial Indicators    & 2  =  -  A $ $  -    3 2  -  E I 0  6 5O  -  S  0 8 8 A  -   -    o  @ @    I    e    a  -  6        la    N N 88 0  x la    o  3    TOWN OF ERWIN  ERWIN, NORTH CAROLINA  This page left blank intentionally  11    -  CERTIFIFD PURED AGUOUNTANTE  Required Auditor Communications  Town of Erwin Fiscal Year June 30, 2023  12    Table of Contents  Required Auditor Communications Communication of Internal Control Related Matters Schedule of Findings & Responses  13    I  Required Auditor Communications  Area  Comments  Our Responsibility under Generally Accepted Auditing Standards  Express opinion on these financial statements in conformity with generally accepted accounting Plan and perform the audit to obtain reasonable assurance about whether thei financial statements are free from material misstatement. Determine audit procedures based upon our risk assessment of material misstatement and evaluation ofi internal control. Evaluating appropriateness of accounting policies, reasonableness of significant accounting estimates, and overal! presentation of financial Consider the Town's ability to continue as a going concern for ar reasonable period of time. Communicating significant matters to  principles.  statements.  management.  Accumulate all known and likely misstatements identified and communicate them to appropriate level of management.  Wel have no responsibility to perform procedures beyond those related to the financial statements. Perform the audit according to our letter to you dated May 1, 2023. (Copy available at  Planned scope and timing of  the audit  your request.)  14      Required Auditor communications  Area  Comments  Significant accounting policies  Management is responsible for selecting and implementing appropriate accounting policies. See Note 1 to the financial statements. Not transactions entered into for which there was al lack of authoritative guidance. Significant policies are listed in detail in the notes section. There are no unusual policies.  Adoption or change in accounting policies Significant accounting estimates  None.  Based on managements knowledgelexpernence. Significant estimates include uncollectable accounts, based on prior year write offs. Estimates are reasonable.  Significant disclosures Difficulties encountered in Performing the audit  Disclosures are neutral, consistent, and clear. No significant difficulties performing the audit. No such disagreements arose during the course  Disagreements with management Correctedluncorected misstatements  oft the audit.  Nouncorrected audit adjustments. Management reviewed and accepted responsibility for all proposed adjusting entries.  15    Required Auditor Communications  Area  Comments  Management representation  Management signed those representations on November 14, 2023. (Copy available at your request)  Consultations with other accountants  None to our knowledge.  Otheri issues  Discussed application of accounting principles and auditing standards prior to retention but not as a condition to our retention. See compliance section of audit.  Other findings and comments  Local Government Commission's financial indicator$  16    Communication of Internal Control Related Matters  Report Onl Internal Control Over Financial Reporting And On Compliance and Other Matters Based On An Audit Of Financial Statements Performed In Accordance With Government Auditing Standards  Independent Auditor's Report  Tot thel Honorable Mayor and Members of the Town Council Town of Erwin, North Carolina  Wel have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government. Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the Town of] Erwin, North Carolina, as of and for the year ended. June 30, 2023, and related notes to thei financial statements, which collectively comprises the' Town of] Erwin's basic financial In planning and performing our audit of the financial statements, we considered the Town of Erwin's internal control over financial reporting (internal control). as al basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town ofl Erwin's internal control. Accordingly, we do not express A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that ai material misstatement oft the entity's financial statements will not bej prevented, or detected and corrected on a timely basis. A significant deficiencyi is a deficiency or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit Our consideration of thei internal control was for the limited purpose described in the first paragraph of this section and was not designed toi identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any. deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We didi identify certain deficiencies in internal control, described in the accompanying schedule of findings and responses that we consider  statements, and] have issued our report thereon dated November 14, 2023. Report on Internal Control Over Financial Reporting  an opinion on the effectiveness oft the Town'si internal control.  attention by those charged with governance.  tobea a significant deficiency, 2023-001.  17    Communication of Internal Control Related Matters  Report on Compliance and Other Matters  As part of obtaining reasonable assurance about whether the Town of Erwin's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances ofr noncompliance or other matters that are required to be reported under Government. Auditing Standards. Government Auditing Standards requires the auditor to perform limited procedures on the Town of Erwin's responses to the findings identified in our audit are described in the accompanying schedule of findings and responses. The Town's response was not subjected to the auditing procedures applied in the audit of the financial The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not  Town of] Erwin's] Responses to Findings  statements and, accordingly, we express no opinion oni it.  Purpose ofthis Report  suitable for any other purpose. 7komÉdow, Price, Scott. Adans &B.PA Elizabethtown, North Carolina November 14, 2023  18    Schedule of Findings and Responses  Section I.  Summary of Auditor's Results  Financial Statements  Type ofr report the auditor issued on whether the financial statements audited were prepared in accordance to GAAP:  Unmodified  Internal control over financial reporting:  Material weakness(es): identified? Significant Deficiency(s) identified? Noncompliance material toi financial statements noted?  yes Xno Xyes  nonei reported  yes Xno  19    Schedule of Findings and Responses  Section II- Financial Statement Findings  SIGNIFICANT DEFICIENCIES 2023-001 Segregation of] Duties  Criteria: The assignment of responsibilities should be segregated sO that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity toj provide reasonable assurance that transactions arel handled appropriately. Condition: Key duties and functions are not segregated amount Town personnel. This is especially a concern in cash management, accounts receivable, purchasing, andj payroll functions in all departments. Effect: Transactions could be mishandled, due to errors or fraud that could lead to loss of assets or the reporting Cause: There are a limited number of personnel for certain: functions and lack ofboard oversight. Identification ofar repeat finding: This is ar repeat finding from the immediate previous audit, 2022-001. Recommendation: The duties should be separated as much as possible, by possibly training and utilizing non- financial personnel andi utilizing alternative controls. The governing board should provide some ofthese controls. Views of responsible officials and planned corrective actions: The Town agrees with this finding and will adhere  ofmisleading financial information.  to the correction action plan on page in this audit report.  20        &  8  8    a    2  2  &  N  2  3  N  a    6    2  2  &  A  2  2  R    TOWN OF ERWIN ERWIN, NORTH CAROLINA FINANCIAL: STATEMENTS June 30, 2023        TOWN OF ERWIN, NORTH CAROLINA FINANCIAL: STATEMENTS June 30, 2023  Randy L. Baker, Mayor  BOARDOFCOMMISSIONERS  CharlesL. Byrd Ricky Blackmon Alvestor L. McKoy  Billy Turnage DavidL. Nelson Timothy D. Marbell  TOWNOFFICERS Snow Bowden, Town Manager  Lindal P Williams Financel Director  Lauren Evans Town Clerk  Timl Morris Attorney    TOWNOFERWIN/NORTHCAROLINA TABLEOF CONTENTS June 30, 2023  Exhibit  Page 1-3 4-9  FNANCIALSECTION: Independent Auditor's Report Management's Discussion and Analysis Basic Financial Statements:  Govemment-wide Financial Statements: Statement ofNet Position Statement ofActivities Fund) Financial Statements:  1 2 3  10-11 12 13 14 15 16  Balance Sheet- - Govemnmental. Funds Statement ofNet] Position Govemmental. Funds  Reconcilation ofthe Governmentall Fund Balance Sheet to the Statement ofRevenues, Expenditures, and Changes in Fundl Balances Reconciliation ofthe Statement ofRevenues,' Expenditures, and Changes in] Fund Balances ofGovernmentall Funds to the Statement of Statement ofRevenues, Expenditures, and Changes inl Fund Balances Annual. Budget and. Actual - Generall Fund and Community  4  Activities  5  17-18 19-37  Enhancement Fund Notes to1 the Finançial Statements ReguiredSuppemental Financial Data: Government Employees" Retirement System  ScheduleofPoperionate Share ofNet Pension Liability (Asset)-Local eheduleo/Contrhbutons Local Govemment Employees" Retirement  38 39 40 41 42  System  Schedulec ofChanges in' Totall Pension Liability Law Enforcement Officers' Special Separation. Allowance ScheduleofTotal Pension Liability as al Percentage of Covered Payroll- Lawl Enforcement Officers' Special Separation. Allowance Scheduleo ofChanges int the TotalOther) Postemployment Benefits Liability  and Related Ratios    Individual Funds Statements and Schedules: Budget and Actual- General Fund AIWoodall Park Improvements Fund American ReliefPlan Fund Community Enhancement Fund  Schedule ofRevenues, Expenditures and Changes inj Fund Balances-  43-46 47 48 49 50 51 52 53 54 55  Combining Balance Sheet for Non-Major Governmental. Funds Combining Statement ofRevenues, Expenditures and Changes in Fund Balance for Non-Major Governmental. Funds Schedule ofRevenues,' Expenditures and Changes in Fund Balances- -  Budget and Actual- SCIF Grant Community Building Priebel Field Special Revenuel Fund  Other Schedules:  Schedule ofAd ValoremTaxes Receivable Analysis ofCurrent TaxLevy Town-WideLevy  Compliance Section:  Report On Internal Control Overl Financial Reporting And On Compliance and Other) Matters Based On An Audit OfFinancial Statements Performed In Accordance With Government. Auditing Standards Schedule ofFindings and Responses Corrective Action Plan  56-57 58-59 60        FINANCIAL SECTION        Thompson, Price, Scott, Adams & Co., P.A. Post Office Box 1690 Elizabethtown, North Carolina! 28337 Telephone (910) 862-8129 Fax (910)862-8120  R. Bryon Scott, CPA Gregory S. Adams, CPA Alan W. Thompson, CPA  Independent Auditor's] Report  To the Honorable Mayor and Members of the" Town Council Town ofl Erwin, North Carolina  Report on the Audit of the Financial Statements  Opinions  We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information oft the Town of Erwin, North Carolina, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the Town's basic financial In our opinion, based upon our audit, the accompanying financial statements referred to above present fairly, in all material respects, ther respective financial position of the governmental activities, each major fund, and the aggregate remaining fundi information ofthe' Town of Erwin as of] June 30, 2023, and the respective changes in financial position, thereof and the respective budgetary comparisons for the General Fund and the Community Enhancement Fund for the year then ended in accordance with accounting principles generally accepted ini the United States of America We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government. Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the' Town of] Erwin andt toi meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance ofi internal control relevant to the preparation and fair presentation of financial statements that are: free Inp preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raises substantial doubt about the Town of Erwin's ability to continue as a going concern for the twelve months beyond the financial statement date, including any currently known information that  statements as listed in the table ofo contents.  Basis for Opinions  to provide al basis for our audit opinions.  Responsibilities of Management, for the Audit of the Financial. Statements  from material misstatement, whether due to fraud or error.  may raise substantial doubt shortly thereafter.  Members  American Institute ofCPAS-1 N.C. Association ofCPAS-AICPAI Division ofFirms    Auditor's Responsibilities. for the Audit oft the Financial Statements  Ouro objectives aret to obtain reasonable assurance about whether thei financials statements asa wholea arei freeofmaterial misstatement, whether due to fraud or error, and to issue an auditor's: report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Governmental Auditing Standards will always detect material misstatement when ite exists. The risk ofr not detecting ar material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, mistrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually ori in the aggregate, they would influence thej judgment made by ar reasonable user based on the financial statements. Inj performing an audit in accordance with GAAS and Governmental Auditing Standards we exercised professional, judgement andi maintained professional skepticism throughout the audit. identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsible to those risks. Such procedures include examining, on at test basis, evidence regarding the amounts and disclosures in the financial statements. obtain an understanding ofi internal control relevant to the audit in order to design audit procedures that are appropriate ini the circumstances, but not for thej purpose of expressing an opinion on1 the effectiveness of the evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation oft the financial statements. conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town of Erwin's ability to continue as a going concern for a reasonable period We are required to communicate with those charged with governance regarding among other matters, the planned scope and timing oft the audit, significant audit findings, and certaini internal control-related matters that wei identified Accounting principles generally accepted in the United States of America require that the Management'sl Discussion and Analysis (pages 4 through 9) and the Local Government Employees' Retirement System's Schedules oft the Proportionate Share of the Net Pension Liability and Contributions (pages 38 and 39) the Other Post Employment Benefit (pages 40 and 41) and Law Enforcement Officers' Special Separation Allowance Schedules of Funding Progress andl Employer Contributions (page 42)respectively be presented tos supplement thel basici financial statements. Such information ist the responsibility of management, although not ai required part oft the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing thel basic financial statements in an appropriate operational, economic, orl historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted ofi inquiries ofr management about the methods of preparing thei information and comparing the information for consistency with management's responses to ouri inquiries, thel basic financial statements, and other knowledge we obtained during our audit oft the basic financial statements. We do not express an opinion or provide any assurance ont thei information because the limited procedures Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of Erwin's basic financial statements. The combining andi individual fund financial statements, budgetary schedules and other schedules are presented for purposes ofadditional analysis and are not a required part of thel basic finançial statements. Suchi information is ther responsibility of management and was derived from andi relates directly to the underlying accounting and other records used to prepare the basic financial statements. Thei information has been subjected to the auditing procedures applied in the audit ofthe basic financial statements and certain additional procedures, including comparing and reconciling suchi information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us. Inc our opinion, based on our audit, the procedures performed as described abovet the combining andi individual fund financial statements, budgetary schedules and other schedules are: fairly stated, in all material respects, in relation to  Town of Erwin'si internal control. Accordingly, no such opinion is expressed.  oftime.  during the audit.  Required. Supplementary. Information  dor not provide us with sufficient evidence to express an opinion or provide any assurance.  Supplementary. Information  the basic financial statements as a whole.  2    Other Reporting Required by Government. Auditing Standards  In accordance with Government. Auditing Standards, wel have alsoi issued our report datedl November 14,2023 on our consideration of the Town of Erwin'si internal control over financial reporting and on our tests ofi its compliance with certain provisions ofl laws, regulations, contracts, and grant agreements and other matters. Thej purpose ofthat report isto describe the scope of our testing ofi internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Town of Erwin's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Town of Erwin'si internal control over financial reporting and compliance.  7hompson, Price, Scott. Adans &B..PA Elizabethtown, North Carolina November 14,2023  3    TOWN OF ERWIN  ERWIN, NORTH CAROLINA  This page left blank intentionally    MANAGEMENTS DISCUSSION AND. ANALYSIS  As management of the Town of] Erwin, we offer readers of the Town of Erwin's (The "Town") financial statements this narrative overview and analysis oft the financial activities of the' Town of Erwin for the fiscal year ended. June 30, 2023. We ençourage: readers tor read thei information presented herei in conjunction with additional information thaty wel have furnished int the' Town'si financial statements, which follow this narrative.  FINANCIALI HIGHLIGHTS  The assets and deferred outflows of resources of the Town of Erwin exceeded its liabilities and deferred inflows ofresources at the close of the fiscal year by $10,834,628 (net position). The government's total net position increased by $1,311,130 primarily due to increases in the As of the close of the current fiscal year, the Town's governmental funds reported ending fund balances of $8,113,392 an increase of$1,070,950. Approximately 11 percent oft this total amount, Att thee end oft the current fiscal year, unassigned fund balance for the General Fund was $4,196,135 The Town of Erwin's long term debt consists of compensated absences, other post-employment  governmental activities net position. or $870,804 is nonspendable or restricted. obligation and pension obligations. OVERVIEW OF THE FINANCIALSTATEMENTS  or 124 percent oftotal general fund expenditures fort the fiscal year.  This discussion and analysis are intended to serve as ani introduction to the Town of] Erwin's basic financial statements. The Town's basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3)notes tot the financial statements (seel Figure 1).The basic financial statements present two different views of the Town through the use of government-wide statements and fund financial statements. In addition to the basic financial statements, this report contains other supplemental information that will enhance the reader'sunderstanding: oft the financial condition ofthe  Town of] Erwin,  Required Components of Annual Financial Report  Figure1  Management's Discussion and Analysis  Basic Financial Statements  Government-wide Financial Statements  Fund Financial Statements  Notes to the Financial Statements Detail  Summary    Management Discussion and Analysis Town of Erwin BASIC FIMANCIALSTATEMENTS  The first two statements (Exhibits 1 and 2) in the basic financial statements are the Government-wide Financial Statements. They providel boths shorta and long-term information aboutt the' Town's financials status. The next statements (Exhibits 31 through 5) are Fund Financial Statements. These statements focus on the activities of the individual parts oft the Town's government. These statements provide more detail than the government-wide statements. There are two parts to the Fund Financial Statements: 1) the governmental Ther next section oft thel basic financial statements is the notes. The notes to the financial statements explain in detail some of the data contained in those statements. After the notes, supplemental information is provided to show details about the Town'si individual funds. Budgetary information required by thel North  funds statements; and 2) the budgetary comparison statements.  Carolina General Statutes also can be foundi ini this part of the statements. GOVERNMENT-WIDE FINANCIALSTATEMENTS  The government-wide financial statements are designed to provide the reader with a broad overview of the Town of Erwin's finances, similar in format to a financial statement of a private-sector business. The government-wide statements provide short and long-term information about the' Town's financial status asa The two government-wide statements report the Town'si net position and howi it! has changed. Net positionis is the difference between the Town's total assets and deferred outflows of resources and total liabilities and deferred inflows of resources. Measuring net position is one way to gauge the Town's financial condition. The government-wide statements have only one category: 1) governmental activities. The governmental activities include all of the Town's basic services such as public safety, environmental protection, transportation, parks and recreation, and general administration. Property taxes, sales taxes and State and  whole.  federal grant funds finance most oft these activities. FUNDI FINANCIAL STATEMENTS  The government-wide financial statements are onl Exhibits 1 and 2 oft this report.  The fund financial statements (see Figure 1) provide a more detailed look at the Town of Erwin's most significant activities. A fundi is a grouping ofrelated accounts that is used tor maintain control over resources that havel beens segregatedi fors specific activities ord objectives. The Towno ofErwin, like all other governmental entities inl North Carolina, uses fund accounting to ensure and reflect compliance (or non-compliance) with finance related legal requirements, such as the General Statutes or the Town's budget ordinance.. All oft the Governmental Funds Governmental funds are used to account for those functions reported as governmental activities in the government-wide financial statements. All oft the Town's basic services are accounted fori in governmental funds. These funds focus on how assets can readily be converted into cash flow in and out, and what monies are left at year-end that willl be available for spending in the next year. Governmental funds are reported using an accounting method called modified accrual accounting, which provides as short-term spending focus.. Asar result, the governmental fund financial statements give thei reader adetailed short-term view that helps him or her determine if there are more or less financial resources available toi finance the Town's programs. The relationship between government activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is described in a  funds of Town ofl Erwin can be dividedi into one categoygovemmental funds.  reconciliation thati is aj part ofthei fund financial statements.    Management Discussion and Analysis Town of] Erwin  The Town of] Erwin adopts an annual budget fori its General Fund, as required by the General Statutes. The budget is al legally adopted document thati incorporates input from the citizens ofthe Town, ther management ofthe' Town, and the decisions oft thel Board about which services toj provide and! how toj pay for them. It also authorizes the Town to obtain funds from identified sources to finance these current period activities. The budgetary statement provided for the General Fund demonstrates how. well the Town complied with the budget ordinance and whether or not the Town succeeded in providing the services as planned when the budget was adopted. The budgetary comparison statement uses the budgetary basis of accounting and is presented using the same format, language, and classifications as the legal budget document. The statement shows four columns: 1) the original budget as adopted by the board; 2) the final budget as amended by the board; 3) the actual resources, charges to appropriations, and ending balances in the General Fund; and 4) the difference or variance between the final budget andi the actual resources and charges. Notes to the Financial Statements - The notes provide additional information that is essential to a full understanding oft the data provided in the government-wide and fund financial statements. The notes to the Other Information - In addition to the basic financial statements and accompanying notes, this report includes certain required supplementary information concerning the Town of] Erwin's] progress ini funding its obligation toj provide various benefits to its employees. Required supplementary information can be found Interdependence with Other Entities: The Town depends on financial resources flowing from, or associated with, both the Federal Government andt the State ofNorth Carolina. Because oft this dependency, the Town is subject to changes in specific flows of intergovernmental revenues based on modifications to  financial statements begin onj page 19 of this audit report.  beginning on page. 38 oft this report.  Federal and State laws and] Federal and State appropriations. Government-Wide Financial Analysis  Town of Erwin's! Net Position Figure2  Govemmental Activities 2023 $ 9,340,516 $ 8,173,361 4,284,252 13,624,768 867,400 1,930,075 1,164,887 3,094,962 562,578 4,284,252 859,686 5,690,690 10,834,628 $ 9,523,498  2022 3,898,471 12,071,832 615,943 1,318,048 1,008,591 2,326,639 837,638 3,898,471 744,441 4,880,586  Assets Current and otherassets: CapitalAssets Totalassets DeferredOutflows. of Resources Liabilities Long-term! liabilities outstanding Otherl liabilities Totall liabilities Deferredi inflows ofresources Net Position Net Investment in Capital Assets Restricted UnrestrictedDetici), Totall Net Position  6    Management Discussion and Analysis Town of Erwin  As noted earlier, net position may serve over time as one useful indicator of a government's financial condition. The assets and deferred outflows of resources of the Town of Erwin exceeded liabilities and deferred inflows of resources by $10,834,628 as of June 30, 2023. The Town's net position increased by $1,311,130 for the fiscal year ended. June 30, 2023. However, a portion, $4,284,252 (40%), reflects the Town's neti investment in capital assets (e.g. land, buildings, machinery, ande equipment). The Towno ofErwin uses these capital assetst top provide services to citizens; consequently, these assets are not availablei fori future spending. Although the Town of Erwin's net investment in capital assets is reported net of the outstanding related debt, the resources needed to repay that debt must be provided by other sources, since the capital assets cannot be used tol liquidate these liabilities. An additional portion ofthe Town of Erwin's net position of$859,686 (8%), represents resources that are subject to external restrictions on how they may be used. The Several particular aspects of the Town's financial operations influenced the increase in total unrestricted Revenues increased including ad valorem taxes after the county revaluation and grant revenue.  remaining balance of $5,690,690 (52%) is unrestricted.  governmental type net position:  Expenditures remained steady.  Town of Erwin's Changes in Net Position  Figure3  Governmental. Activities 2023  2022  Revenues Program Revenues Charges for Services Grants and] Entitlements General Revenue Property Taxes Grants and contributions not restricted tos specific programs Other Taxes Investment Farnings Other Totall Revenues Expenses General Government Public Safety Transportation Environmental Protection Cultural and) Recreation TotalE Expenses IncreaseDecrease)inl Net Position Net Position, beginning Net Position, ending  $ 702,374 $ 679,806 899,866 1,767,254 1,235,081 372,981 118,307 53,000 5,148,863 767,106 1,462,833 760,495 299,340 547,959 3,837,733 1,311,130 9,523,498 10,834,628  444,006 1,408,111 1,132,105 287,036 10,896 42,904 4,004,864 359,370 1,164,602 943,202 281,174 468,696 3,217,044 787,820 8,735,678 9,523,498  Governmental Activities Governmental activities increased the Town of Erwin's net position by $1,311,130, thereby accounting for all oft the increasei int the net] position ofthe Town ofErwin. Key elements  oft thei increase were mentioned above.  7    Management Discussion and Analysis Town ofl Erwin  FINANCIALANALYSIS OF THE TOWN'SI FUNDS  As noted earlier, the Town of Erwin uses fund accounting to ensure and demonstrate compliance with Governmental Funds. Thei focus oft the Town of] Erwin's governmental funds is to provide information on near-term inflows, outflows, and balances of usable resources. Suchi information is useful in assessing the The general fund is the chief operating fund of the Town ofl Erwin. At the end of the current fiscal year, unassigned fund balance oft the General Fund was $4,196,135, while total fund balance reached $4,931,750. At. June 30,2 2023, the governmental: funds of Town ofErwin reported a combined fund balance of$8,113,392 with a neti increase in fund balance of$1,070,950. Included ini this change in fund balance is ani increase in General Fund Budgetary Highlights. During the fiscal year, the Town revised the budget on several occasions. Generally, budget amendments fall into one oft three categories: 1) amendments made to adjust the estimates that are used to prepare the original budget ordinance once exact information is available; 2) amendments madet tor recognize newi funding amounts from external sources, sucha as Federal and State grants;  finance-related legal requirements. Town of Erwin's financing requirements.  fund balance oft the General Fund.  and 3) increases in appropriations that become necessary to maintain services.  CAPITAL. ASSET ANDI DEBT. ADMINISTRATION  Capital assets. The Town ofl Erwin's investment in capital assets for its governmental. activities as of. June 30,2023, totals $4,284,252 (net ofa accumulated depreciation). These assets includel buildings, machinery and  equipment, and vehicles.  Major capital asset transactions during the fiscal year include the following:  Park parking lot improvements.  The addition of various equipment including leaf trucks.  Town of Erwin's Capital Assets (net of depreciation) Figure 4  Govermental Activities 2023 191,207 $ 191,207 659,534 1,382,499 8,347 718,745 1,096,657 227,263 4,284,252 $ 3,898,471  2022 659,534 1,457,995 424,174 1,103,904 61,657  Land Construction: inl Progress Buildings and) Improvements Equipment Vehicles and Motor Equipment Infrastructure Land Improvements  Additional information on the' Town'so capital assets can be found beginning onj page 25 ofthel Basic Financial  Statements.  8    Management Discussion and Analysis Town of Erwin  Long-term Debt. As of] June 30, 2023, the Town ofl Erwin has no outstanding debt.  North Carolina general statues limit the amount of general obligation debt that al unit ofg government cani issue to 8j percent oft thet total assessed value oft taxable property located within that government'sb boundaries. The legal debti margin for the Town of Erwini is $29,224,376. The Town did not issue any bonds duringt thei fiscal year 2023-2024. Additional information regarding the Town's long-term debt can be found beginning on  page 36.  ECONOMICFACTORS ANDI NEXT YEAR'S BUDGETS ANDI RATES The following key economic indicators reflect the growth andj prosperity oft the Town of] Erwin.  The Town of Erwin's capability to grow its tax base while implementing a fiscally conservative policy has allowed the tax rate tor remain consistent, although the County Revaluation! hasi increased the overall tax base withi increases toj property values within the Town, and serves as ani indicator of the progressing economy in Erwin. The upcoming year's tax rate was lowered to $0.48 and During the year there were some small commercial property annexations. Itis anticipated for the annexation ofadditional commercial properties and a 55-acre tract for residential homesites. The Town ofl Erwin must seek to diversify its economy and move fromi its roots of manufacturing reliance. Efforts are underway to expand and enhance the commercial growth corridor of 421 as The' Town will continually needt to closely examine all areas ofrevenues and expenditures: as part ofs standard  remained the same $.095 the fire protection rate.  well as a downtown revitalization initiative. operations of procedure toi increase unrestricted revenue. Governmental Activities - General Fund  BUDGETHIGHLIGHIS FORT THE FISCAL YEAR ENDING JUNE: 30, 2024  The Town of] Erwin did lower the ad valorem tax rate with the 2023-2024 adopted budget. Due to external economic factors, the Town of] Erwin does note expecti increasesi int the collection ofrevenues from state shared sales or franchise taxes. Thel lack of expected increases is anticipated to lead to the sustaining of budgeted revenue for the fiscal year ending June 30, 2024. The Town will use these revenues to finance programs Budgeted expenditures int the General Fund are expected to remain relatively consistent with previous levels due to continued and focused efforts by management to contain expenses and continue to deliver necessary  currently inp place. services.  REQUESTS FORI INFORMATION  This report is designed toj provide an overview oft the Town of Erwin's finances for those with an interest in this area. Questions concerning any of the information found in this report or requests for additional information should be directed to Snow Bowden, Town Manager, Town of Erwin, P.O. Box 459, Erwin) NC 28339. Mr. Bowden can be reached by e-mail at owmamager@emwimncorg or by telephone at (910) 897- 5140. Additional information: about the unit may! be obtained from the' Town ofE Erwin website at www.erwin-  nc.org.  9    Basic Financial Statements    Town ofErwin, North Carolina Statement of Net Position June 30, 2023  Exhibit 1  Governmental Activities 7,589,774 1,156,114 30,375 4,529 649 20,510 416,171 9,218,122 122,394 850,741 3,433,511 4,284,252 4,406,646 13,624,768 648,713 218,687 867,400 224,561 833,979 106,347 879,499 720,572 330,004 3,094,962  Assets Current assets: Cash & cash equivalents Restricted cash Taxes receivable (net) Accrued interest receivable ont taxes Accounts receivable (net) Leasel Receivable Due from other governments Total current assets Non-current Assets: Lease Receivable Capital Assets:  Land andi nondepreciable improvements Other capital assets, net of depreciation Total capital assets Total Non-current Assets Total Assets Deferred Outflows of] Resources Pension deferrals OPEB deferrals Totall Deferred Outflows ofl Resources Liabilities Current liabilities: Accounts payable and accrued liabilities Unearned revenue Current portion ofl long-term debt Long-term Liabilities: Net pension liability-LGERS Total OPEBI liability Total pension liability-LEO Duei ini more than one year Total liabilities  10  The notes to the financial statements are an integral part oft thiss statement.    Town ofE Erwin, North Carolina Statement of Net Position June 30, 2023  Exhibit1  Governmental Activities  Deferred Inflows of Resources Prepaid taxes Leases Pension deferrals OPEB deferrals Net] Position Net Investment in capital assets Restricted for: Stabilization by state statute Streets Cultural and Recreation Public safety Unrestricted Totall Net Position  1,894 131,786 94,392 334,506 562,578 4,284,252 537,551 320,059 2,076 5,690,690 10,834,628  11  The notes to1 the financial statements are an integral part oft this statement.    TOWN OFI ERWIN  ERWIN, NORTH CAROLINA  This page left blanki intentionally    Town of] Erwin, North Carolina Statement ofA Activities For the Year Ended. June 30, 2023  Exhibit2  Net (Expense) Revenue and Changes in! Net] Position Governmental Activities  Program Revenues Operating Grants Capital Grants and Contributions Contributions  Charges for Service 41,637 $ 134,927 $ 57,575 11,924 521,236 70,002 702,374  and  Functions/Programs Primary Government: Governmental Activities: General Government Public Safety Transportation Environmental Protection Cultural andl Recreation  Expenses $ 767,106 $ 1,462,833 760,495 299,340 547,959  $  (590,542) (1,061,048) (469,863) 221,896 (335,936) (2,235,493)  344,210 278,708 67,467 825,312  74,554 74,554  Total Governmental. Activities $ 3,837,733  General Revenues: Taxes: Property taxes, levied for general purpose Other taxes Grants and contributions not restricted to specific programs Investment earnings, unrestricted Miscellancous, unrestricted Net position beginning Net position ending  1,767,254 372,981 1,235,081 118,307 53,000 3,546,623 1,311,130 9,523,498 10,834,628  Total general revenues Change in net position  12  Thei notes tot the financial statements are ani integral part oft this statement.    Town of] Erwin, North Carolina Balance Sheet Governmental Funds June 30, 2023 Major Funds AIY Woodall Park  Exhibit3  American Community Relief 740,865  Total Funds 1,156,114 30,375 649 120,731 416,171 142,904  Enhancement Non-Major Governmental $ 2,602,626 $ 30,847 $ 7,589,774  General Fund Improvements Plan Fund  Fund  Funds 93,114  Assets Restricted cash Receivables (net): Taxes Accounts Due from other funds Due from other governments Lease Receivable Total assets Liabilities Accounts payable and accrued liabilities Unearned revenue Duet to other funds Total liabilities Deferred inflows of resources Property tax receivable Prepaid taxes Leases Total deferredi inflows ofresources Fund Balances: Non Spendable Leases Restricted Stabilization by State Statute Streets Public Safety Committed Cultural and Recreation Capital Projects Assigned Subsequent Year Expenditures Unassigned Total fund balances Total liabilities, deferred inflows ofr resources and fund! balances  Cash and cash equivalents $ 4,543,321 $ 412,980 $  322,135 30,375 50 413,430 5,309,311 224,561 120,731 345,292 30,375 1,894 32,269  599 120,731 142,904 2,866,860  2,193 415,173  548 124,509 9,456,718  740,865  224,561 833,979 120,731 30,375 1,894 131,786 164,055 11,118 537,551 320,059 2,076 443,827 2,602,626 4,196,135 31,395 8,113,392  740,865 740,865  93,114 93,114 1,179,271  131,786 131,786 11,118 121,330  413,480 320,059 2,076  2,193 412,980  548 30,847  2,602,626  4,196,135 4,931,750  415,173  2,735,074  5,309,311 $ 415,173 $ 740,865 $ 2,866,860 $ 124,509 $ 9.456.718  13  Ther notes to1 the financial statements are ani integral part oft this statement.    Town ofE Erwin, North Carolina Balance Sheet Governmental Funds June 30, 2023  Exhibit 3, continued  Amounts reported: for governmental activities in the Statement of Net Position (Exhibit 1)are different because: Total Fund Balance, Governmental Funds Capital assets used in governmental activities are not financial resources and therefore are not reported int the funds. Gross capital assets at historical cost Accumulated depreciation Deferred outflows of resources related to pensions are not reported. in the funds Deferred outflows of resources related to OPEB are not reported int the funds Other long-term assets (accrued interest receivable from taxes) are not available to pay for current-period expenditures and therefore are inflows or resources. Earned revenues considered deferredi inflows ofresources ini funds statements. Long-term liabilities usedi in governmental activities are not financial uses and therefore are not reported in the funds. Compensated absences Net pension liability Total OPEB liability Total pension liability Deferred inflows ofresources related to pensions are not reported in the funds Deferredi inflows ofresources related to OPEB are not reported in the funds Net position of governmental activities  8,113,392 4,284,252 648,713 218,687 4,529 30,375 (106,347) (879,499) (720,572) (330,004) (94,392) (334,506) 10,834,628  $ 8,259,849 (3,975,597)  14  The notes to the financial statements are ani integral part oft this statement.    Town ofErwin, North Carolina Governmental. Funds For the Year Ended. June 30, 2023 Major Funds AIV Woodall American Community Park  Exhibit4  Statement of Revenues, Expenditures, and Changesi inl Fund Balance  Total Funds 1,757,248 372,981 1,235,081 4 890,866 17,495 667,328 17,551 197,858 17,555 5,138,857 4 727,463 1,374,055 513,403 151,052 679,048 9,202 622,886 9,206 4,067,907 8,349 1,070,950 8,349 1,070,950 23,046 7,042,442  General 1,757,248 $ 372,981 17,495 642,955 156,138 4,382,568 592,532 1,029,992 439,289 96,981 679,048 546,221 3,384,063 998,505 998,505 3,933,245 4,931,750 $. 415,173 $  Relief Enhancement Non-Major Governmental  Fund Improvements Plan fund  Fund  Funds  Revenues Ad valorem taxes Other taxes and] licenses Unrestrictedi intergovernmental 1,235,081 Restricted intergovernmental 200,670 Permits and fees Sales and: services Other revenues Total revenues Expenditures Current: General government Public: safety Transportation Public works Environmental: protection Cultural andi recreation Total expenditures Revenues over (under) expenditures Net changei in fund balance Fund balances, beginning Fund balances, ending  $ 15,554 9,000 24,554  674,638 674,638 134,927 344,063 74,114 54,071 67,463 674,638  24,373 15,169 39,542  24,554 24,554 390,619  39,542 39,542 2,695,532  2,735,074 $ 31,395 $ 8,113,392  15  Ther notes tot the financial statements are ani integral part ofthis statement.    Town of Erwin, North Carolina Governmental Funds For the Year Ended. June 30, 2023  Exhibit 4, Continued  Reconciliation ofthe Statement ofl Revenues, Expenditures, and Changes inl Fund] Balancei to the! Statement of Activities  Amounts reported for governmental activities int the statement ofa activities are Net changes in fund balances total governmental funds  different because:  $ 1,070,950  Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost oft those assets is allocated over their estimated useful lives and reported as depreciation expense. Thisi is the amount by which capital outlays exceeded depreciation in the current Capital outlay expenditures that were capitalized Depreciation expense for Governmental assets  period.  659,618 (273,837) 140,336 20,899 28,515 10,006  Contributions tot the pension plan int the current fiscal year are noti included Benefit] payments paid and administrative expense for thel LEOSSA are not OPEB: Benefit payments paid and administrative expense made ini the current year are noti included on the Statement of Activities Revenues in the statement of activities that do not] provide current financial resources are not reported as revenues int the funds. Change in unavailablei revenue: for tax revenues Some expenses: reported in the statement of activities do not require the use ofc current financial resources and, therefore, are noti reported as  on the Statement of Activities included on the Statement of Activities  expenditures in governmental funds. Compensated: absences Pension expenses Other postemployment benefits expenses Net pension obligation  (30,529) (32,651) (29,748) (252,429) 1,311,130  Total changes in net position ofg governmental activities.  16  The notes to the: financial statements are ani integral part oft this statement.    Town ofErwin, North Carolina General Fund Budget and Actual For the Yearl Ended June 30, 2023  Exhibit 5  Statement of Revenues, Expenditures, and Changes inl Fund Balance-  General Fund  Variance With Final Budget- Positive (Negative) 51,581 (6,677) 223,079 670 3,995 22,949 108,552 404,149 152,115 166,472 99,418 86,477 72,196 44,678 621,356 1,025,505 (27,000) (27,000) 998,505  Actual Amounts  Original  Final  Revenues: Ad valorem taxes Other taxes and licenses Unrestricted: intergovernmental Restricted intergovernmental Permits and fees Sales and services Other revenues Total revenues Expenditures: Current: General government Public safety Transportation Public works Environmental protection Cultural andi recreation Total expenditures Revenues over (under) expenditures Other financing sources (uses): Transfers from other funds Fund balance appropriated Net Change in] Fund] Balance Fund balances, beginning Fund balances, ending  $ 1,678,171 $ 1,705,667 $ 1,757,248 $  358,158 969,270 150,000 13,000 622,006 1,500 3,792,105 870,138 1,520,527 600,721 179,529 751,244 571,580 4,493,739 (701,634) 674,634 27,000 701,634  379,658 1,012,002 200,000 13,500 620,006 47,586 3,978,419 744,647 1,196,464 538,707 183,458 751,244 590,899 4,005,419 (27,000) 27,000 27,000  372,981 1,235,081 200,670 17,495 642,955 156,138 4,382,568 592,532 1,029,992 439,289 96,981 679,048 546,221 3,384,063 998,505  Total other financing sources (uses)  998,505 $ 3,933,245 4,931,750  17  The notest to the financial statements are ani integral part of thiss statement.    Town of Erwin, North Carolina Statement of Revenues, Expenditures, and Changes inl Fund Balance- Community Enhancement Fund Budget and Actual For the Year Ended. June 30, 2023  Exhibit 5  Community Enhancement Fund  Variance With Final Budget- Positive (Negative) $  Actual Amounts $  Original $  Final  Revenues: Ad valorem taxes Other taxes and licenses Unrestricted intergovernmental Restricted: intergovernmental Permits and fees Sales and services Other revenues Total revenues Expenditures: Current: General government Public safety Transportation Public works Environmental protection Cultural and recreation Total expenditures Revenues over (under) expenditures Other financing sources (uses): Transfers from other funds Transfers to other funds Fund balance appropriated Net Change in Fund Balance Fund balances, beginning Fund balances, ending  24,373 15,169 39,542  24,373 15,169 39,542  39,542  39,542  Total other financing sources (uses)  39,542 $ 2,695,532 2,735,074  39,542  18  The notes to the financial statements are ani integral part of this statement.    TOWN OF ERWIN  ERWIN, NORTH CAROLINA  This page left blanki intentionally    TOWN OF ERWIN, NORTHCAROLINA Notes tot thel Financial Statements Fort thel Fiscal Year Ended. June: 30, 2023  NOTE1: SUMMARY OF SIGNIFICANT ACCOUNTINGI POLICIES  The accounting policies of the Town of Erwin conform to generally accepted accounting principles as applicable to The Town of Erwin (the Town) is a municipal corporation that is governed by an elected mayor and a six-member Government-wide Statements: The statement of net position and the statement of activities display information about the primary government. These statements include the: financial activities of the overall government. Eliminations havel been made tor minimize the double counting ofi internal activities. These statements distinguish between the, governmental and business-type activities of the Town. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are financed in whole ori inj part by fees charged The statement of activities presents a comparison between direct expenses and program revenues for each function oft the Town's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expense allocations that have been made ini the funds have been reversed for the statement of activities. Program revenues include (a) fees and charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, Fund Financial Statements: The fund financial statements provide information about the Town's funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. The Town does not have any  governments. The following is a summary of the mores significant accounting policies:  A. Reporting Entity council. B. Basis of Presentation  toe external parties. The Town does not have any business-type activities.  including all taxes, are presented as general revenues.  proprietary funds. The' Town does not have any fiduciary funds to report. The' Town reports the following major governmental funds:  General Fund - The General Fund is the general operating fund of the Town. The General Fund accounts for all financial resources of the general government except those required to be accounted for in another fund. The primary revenue: sources are ad valorem taxes, State grants, and various other taxes and] licenses. Thej primary expenditures are for Al Woodall Park Improvement Capital Project - This fund was created for the capital project activity within the parks American. Relief Plan Grant Project Fund- - Which reports the activity of American Relief Plan Act funding received. Community Enhancement Fund- This fund was created from the sale proceeds of the Town's water ands sewer system. Earnings and cell tower lease willl be accumulated and expended for community enhancement projects within the Town. Priebe Field Capital Project - This fund is used to account for grant funds and local donations for the improvement ofa SCIF Grant Community Building Capital. Project This fund is used to account for grant funds and local donations for In accordance with North Carolina General Statutes, all funds of the Town are maintained during the year using the  public safety, street maintenance. and construction, sanitation services and cultural and recreation.  and recreation facilities.  The Town reports the following non-major governmental funds:  Towni recreation park.  thei improvement oft the community building. : Measurement Focus and] Basis of Accounting modified accrual basis ofa accounting.  19    TOWN OF ERWIN, NORTH CAROLINA Notes tot thel Financial Statements Fort the Fiscal Year Ended. June 30, 2023  Govermment-wide Financial Statements. The government-wide financial statements are reported using the economic resources measurement focus. The government-wide financial statements are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Non exchange transactions, in which the Town gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, entitlements, and donations. On an accrual basis, revenue: from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations ist recognized int the fiscal yeari in which all eligibility requirements havel beens satisfied. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general Governmental Fund Financial Statements. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of general long-term debt and acquisitions under leases and IT subscriptions are reported The Town considers all revenues available if they are collected within 90 days after year-end, except for property taxes. Ad valorem taxes receivable are not accrued as ai revenue because the amount is not susceptible to accrual. At. June 30, taxes receivable for property other than motor vehicles are materially past due and are not considered to be an available resource to finance the operations oft the current year. Also, as of September 1,2 2013, State law altered the procedures for the assessment and collection of property taxes on registered motor vehicles in North Carolina. Effective with this change in the law, the State of North Carolina is responsible for billing and collecting the property taxes on registered motor vehicles on behalf of all municipalities and special tax districts. Property taxes are due when vehicles are regitered. The billed taxes are applicable to the fiscal year in which they are received. Uncollected taxes that were billedi inj periods prior to September 1, 2013 and for limited registration plates are shown as ai receivable in these: financial Sales taxes and certaini intergovernmental revenues, such as the beer and wine tax, collected and] held by the State at year- end on behalf of the' Town are recognized as revenue. Sales taxes are considered as shared revenue fort the Town of] Erwin because the tax is levied by Harnett County and then remitted to and distributed by the State. Most intergovernmental. revenues and sales ands services are not susceptible to accrual because generally they are not measurable until receivedi in cash. All taxes, including those dedicated for specific purposes are reported as general revenues rather than program revenues. Under the terms of grant agreements, the Town funds certain programs by a combination of specific cost- reimbursement grants, categorical block grants, and general revenues. Thus, when program expenses arei incurred, therei is both restricted and unrestrictedi net position available toi finance the program. Iti is the Town's policy to first apply cost- reimbursement grant resources to such programs, followed by categorical block grants, and then general revenues. The Town's budgets are adopted as required by thel North Carolina General Statutes. An annual budget is adopted: for the General Fund and the Community Enhancement Fund. All annual appropriations lapse at fiscal year-end. Project ordinances are adopted for the Capital Project Funds. All budgets are prepared using the modified accrual basis of accounting. Expenditures may not legally exceed appropriations at the functional level for all annually budgeted funds and at the project level for the multi year funds. The Town manager is authorized by the budget ordinance to transfer appropriations between functional areas within a fund up to 5 percent of the appropriated monies for the department where the allocation is reduced; however, any revisions that alter the total expenditures of any fund or exceed the 5 percent limitation must be approved the governing board. During the year, several amendments to the original budget  revenues include all taxes.  as other financing sources.  statements and are offset by deferredi inflows of resources.  D. Budgetary Data  were necessary.  20    TOWN OF ERWIN, NORTH CAROLINA Notes tot thel Financial Statements Fort thel Fiscal Year] Ended. June 30, 2023  E. Assets. Liabilities. Deferred Outflows/Inflows of Resources and Fund Equity  Deposits and] Investments All deposits of the Town are made in board-designated official depositories and are secured as required by State law [G. S. 159-31]. The Town may designate, as an official depository, any bank ors savings association whose principal office is located inl North Carolina. Also, the Town may establish time deposit accounts such as Now State law [G.S. 159-30(c)] authorizes the Town to invest in obligations of the United States or obligations fully guaranteed both as toj principal and interest by the United States; obligations of the State of North Carolina; bonds and notes of any North Carolina local government or public authority; obligations of certain non-guaranteed federal agencies; certain high quality issues of commercial paper and bankers' acceptances and thel North Carolina Capital Management Trust (NCCMT). The Town's investments are reported at fair value. The NCCMT Government Portfolio, a SEC- registered (2a-7)r money market mutual fund, ist measured at fair value. Because thel NCCMT Government has a weighted average maturity ofl less than 90 days, they are presented as ani investment with ai maturity ofl less than 61 months. In accordance with State law, the Town has invested in securities which are callable and which provide for periodic interest rate increases in specific increments until maturity. Thesei investments are reported at fair value as determined! by Cash and Cash) Equivalents The' Town pools money from several funds to facilitate disbursement andi investment andt to maximize investment income. Therefore, all cash and investments are essentially demand deposits and are considered Restricted Cash Powell Bill funds are classified as restricted cash because they can be expended only for the purposes of maintaining, repairing, constructing, reconstructing or widening of local streets per G.S. 136-41.1 through 136- 41.4. ARPA and SCIF grant funds provided the grant funding in advance of the related expenditures, all unspent cash isrestricted. Controlled substance tax and other forfeiture funds arel held as restricted until expended for that purpose.  and SuperNow accounts, money market accounts, and certificates of deposit.  quoted market prices. cash and cash equivalents.  Governmental. Activities General Fund Streets ARPAI Funding SCIF Grant Public Safety TotalGovemmental. Activities  $  320,059 740,865 93,114 2,076 1,156,114  Ad Valorem Taxes Receivable In accordance with State law [G. S. 105-347 and G. S. 159-13(a)], the Town levies ad valorem taxes on property other than motor vehicles on July 15, the beginning of the fiscal year. The taxes are due on September 1s (lien date); however, interest does not accrue until the following. January 6h. These taxes are based ont the assessed values as of. January 1,2 2022. As allowed by State law, the Town has established a schedule of discounts that apply tot taxes that are paid prior tot the due date. Int the Town's General Fund, ad valorem tax revenues are reported net of Allowance for Doubtful Accounts Alli receivables that! historically experience uncollectible accounts are shown net ofa an allowance for doubtful accounts. This amount is estimated by analyzing the percentage ofr receivables that were written Lease Receivable The Town's lease receivable is measured at the present value of lease payments expected to be received during the lease term. Under the lease agreement, the Town may receive variable lease payments that are dependent upon the lessee's revenue. The variable payments are recorded as an inflow of resources in the period the A deferred inflow of resources is recorded for thel lease. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal tot the initial recording of the lease receivable. The deferred inflow ofr resources is amortized  such discounts. offi in prior years.  payment is received.  on as straight-line basis over thet term oft thel lease.  21    TOWN OF ERWIN, NORTH CAROLINA Notes to thel Financial Statements Fort thel Fiscal Year Ended. June 30, 2023  Inventory The Town does not maintain any inventories.  Capital Assets Capital assets are defined by the government as assets with an initial, individual cost of more than a certain cost and an estimated useful life in excess of two years. Minimum capitalization costs are as follows: land, $5,000; buildings, improvements, and other plant and distribution systems, $5,000; infrastructure, $5,000; furniture and equipment, $5,000; and vehicles, $5,000. Donated capital assets received prior to. June 30, 2015 are recorded: at their estimated fair value at the date of donation. Donated capital assets received after. June 30, 2015 are recorded at acquisition value. All other purchased or constructed capital assets are reported at cost or estimated historical cost. General infrastructure assets acquired prior to July 1, 2003, consist of the road network and water and sewer system assets that were acquired or that received substantial improvements subsequent to July 1, 1980, and are reported at estimated! historical cost using deflated replacement cost. The cost of normal maintenance and repairs that do not add Capital assets are depreciated using the straight-line method over the following estimated useful lives:  tot the value oft the asset ori materially extend assets' lives are not capitalized.  Estimated UsefulLives 30 40 20 5 10 50  Asset Class Infrastructure Buildings Other) Improvements Motor Vehicles Equipment & Furniture Plant Assets  Deferred Outlows/Inflows of] Resources In addition to assets, thes statement of financial position wills sometimes report a separate section for deferred outflows of resources. This separate financial statement element, Deferred Outflows of Resources, represents a consumption of net position that applies to ai future period and so will not be recognized as an expense or expenditure until then. The' Town has one item that meets this criterion, pension deferrals for the 2022 fiscal year. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, Deferred. Inflows of Resources, represents an acquisition ofnet position that applies to ai future period and sO will not be recognized as revenue until then. The" Town has several items that meet the criterion for this category  prepaid taxes, property taxes receivable, leases and pension deferrals for Long-Term Obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported asl liabilities in the applicable governmental activities fund type statement ofr net position. Int the fund financial statements for govemmental fund types, the face amount of debti issued is reported as other financing Compensated Absences The vacation policy oft the Town provides for the accumulation ofu up to thirty (30) days earned vacation leave with such leave being fully vested when earned. Fort the Town'ss govemment-wide: funds, an expense and ali liability for compensated. absences and the salary-related payments are recorded as the leave is earned. The' Town has assumed ai first in-first out method of using accumulated compensated time. The current portion of the accumulated vacation pay is not considered to be material; therefore, no expenditure or liability has been reported in the government The Town's sick leave policy provide for an unlimited accumulation of earned sick leave. Sick leave does not vest, but any unused sick leave accumulated at the time of retirement may be used in the determination of length of service for retirement benefit purposes. Since the Town does notl have any obligation for the accumulated: sick leave until it ist taken,  the 20231 fiscal year.  sources.  wide.  no accrual for sick leavel has been made. Net Position/Fund Balances  Net Position Net position in government-wide fund financial statements is classified as net investment in capital assets; restricted; and unrestricted. Restricted net position represents constraints on resources that are either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or imposed byl law through state: statute.  22    TOWN OF ERWIN, NORTH CAROLINA Notes tot thel Financial Statements For the. Fiscal Year Ended. June 30,2023  Fund Balances - In the governmental fund financial statements, fund balance is composed of five classifications  designed to disclose the hierarchy of constraints placed onl how fund balance can be spent.  The governmental fund types classify fund balances as follows:  Nonspendable Fund Balance This classification includes amounts that cannot be spent because they are either (a) not Restricted Fund Balance This classification includes amounts that are restricted to specific purposes externally  in spendable form or (b) legally or contractually required to bei maintained: intact.  imposed by creditors or imposed by law.  Restricted for Stabilization by State Statute North Carolina G.S. 159-8 prohibits units of government from budgeting or spending a portion of their fund balance. This is one of several statutes enacted by the North Carolina State Legislature in the 1930's that were designed to improve and maintain the fiscal health of local government units. Restriçted by State statute (RSS), is calculated at the end ofe each fiscal year for all annually budgeted funds. The calculation in G.S. 159-8(a) provides a formula for determining what portion of fund balance is available for appropriation. The amount of fund balance not available for appropriation is what is known as "restricted by State statute".. Appropriated) fund balance in any, fund. shall not exceed the sum of cash and investments minus the sum of liabilities, encumbrances, and deferred revenues arising, from cash receipts, as those figures stand at the close ofthe fiscal year next preceding the budget. Per GASB guidance, RSS is considered a resource upon which a restriction is "imposed by law through constitutional provisions or enabling legislation." RSS is reduced by inventories and prepaids as they are classified as nonspendable. Outstanding Encumbrances are included within RSS. RSS is included asa component of Restricted Net position and] Restricted fund balance on the face of thel balance sheet. Restricted for Streets Powell Bill portion of fund balance that is restricted by revenue source for street construction and maintenance expenditures. This amount represents the balance of the total unexpended Restricted for Public Safety - portion of fund balance that is restricted by the funding source, which  Powell Bill funds.  provides the Town with aj portion of drug seizure money.  Committed Fund Balance - portion of fund balance that can only be used for specific purposes imposed by majority vote by quorum of Town of Erwin's governing body (highest level ofdecision-making authority). The governing body can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains inj place until a similar action is taken (the adoption of another ordinance) to remove  or revise the limitation.  Committed for Cultural and Recreation - portion of fund balance committed by the Board for parks and Capital Projects - portion of fund balance committed by thel Board for capital improvements. Assigned fund balance portion of fund balance that Town ofl Erwini intends to use for specific purposes.  recreation expenditures.  Subsequent year's expenditures -1 portion oft fund balance thati is appropriated in the next year's budget that is not already classified in restricted or committed. The governing body approves the appropriation and any Unassigned fund balance - the portion of fund balance that has not been restricted, committed, or assigned to specific  modifications to the original budget.  purposes or other funds.  23    TOWN OFI ERWIN, NORTH CAROLINA Notes to thel Financial Statements Fort thel Fiscal Year Ended. June 30, 2023  The Town of Erwin adheres to the North Carolina Local Government Commission's recommendation of a minimum fund balance for the general fund whichi instructs management to conduct the business of the Town in such a manner that available fund balance does not go below eight percent of budgeted expenditures. Any portion of the general fund balance in excess of 8% oft budgeted expenditures may be appropriated for one-time expenditures andi may not be used Defined Benefit Cost-Sharing Plans - For purposes of measuring the net pension (asset)liability, deferred outflows of resources and deferred inflows of resources related toj pensions, and pension expense, information about the fiduciary net position of thel Local Govemnmental Employees' Retirement System (LGERS) and additions to/deductions from LGERS' fiduciary net position have been determined on the same basis as they are reported by LGERS. For this purpose, plan member contributions are recognized in the period in which the contributions are due. The Town of] Erwin's employer contributions are recognized when due and the Town of Erwin has a legal requirement to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of LGERS. Investments are  for any purpose that would obligate the Towni ina a futurel budget.  reported at fair value.  NOTE2: STEWARDSHIP. COMPLIANCE/ AND ACCOUNTABILITY  A. Significant Violations ofF Finance-Related Legal and Contractual Provisions  1.Noncompliance with N.C. General Statutes None. 2. Contractual Violations None. None. None. A. Assets  B. Deficit in] Fund Balance or Net Position of Individual Funds C.Excess of] Expenditures over Appropriations  NOTE3: DETAILI NOTESONALLFUNDS  Deposits All the deposits of the Town are either insured or collateralized by using one of two methods. Under the Dedicated Method, all deposits that exceed the federal depository insurance coverage level are collateralized with securities held by the Town's agents in these units' names. Under the Pooling Method, which is a collateral pool, all uninsured deposits are collateralized withs securities held by the State" Treasurer's agenti int the name oft the State Treasurer. Since the State Treasurer is acting in a fiduciary capacity for the Town, these deposits are considered tol be held by the Town's agents in their name. The amount of the pledged collateral is based on an approved averaging method for non- interest bearing deposits and the actual current balance for interest-bearing deposits. Depositories using the Pooling Method report to the State Treasurer the adequacy of their pooled collateral covering uninsured deposits. The State Treasurer does not confirm thisi information with the Town or the escrow agent. Because oft the inability to measure the exact amounts of collateral pledged for the Town under the Pooling Method, the potential exists for undercollaterization. This risk may increase in periods of high cash flows. However, the State Treasurer of North Carolina enforces strict standards of financial stability for each depository that collateralizes public deposits under the Pooling Method. The Town has no formal policy regarding custodial credit risk for deposits, but relies on the State Treasurer to enforce standards of minimum capitalization for all pooling method financial institutions and to monitor them for compliance. The Town complies with the provisions of G.S. 159-31 when designating official depositories and verifying that deposits At. June 30, 2023, the Town's deposits had a carrying amount of $5,562,672 and al bank balance of $8,989,313. Of the bank balance, $3,768,419 was covered by pledge securities, $250,000 was covered by federal depository insurance and the remainder was covered under the pooling method or pledged assets by the financial institution. AtJune 30, 2023, the  are properly secured.  Town' s petty cash fund totaled $200.  24    TOWN OF. ERWIN, NORTH CAROLINA Notes toi thel Financial Statements For thel Fiscal Year] Ended. June 30, 2023  Investments  At June 30, 2023 the Town had $3,183,016 invested in the North Carolina Capital Management Trust Government Portfolio which carried a credit rating of AAAm by Standard and] Poor's and AAAm-mf by Moody's Investors Service. The amounts presented in the Balance Sheet and the Statement of Net Position is net of the following allowance for  The Town) hadi no policy regarding credit risk ofi itsi investments. Receivables - Allowance for Doubtful Accounts  doubtful accounts:  Fund Generall Fund Taxes Receivable Total  June 30, 2023 $ 15,000 15,000  Lease] Receivable  Inl March 2019, the' Town amended the lease agreement for the lease ofreal estate used for a cell tower. Under the lease, the vendor pays the' Town $1,992 per month for sixty months in exchange for rightt to the land. On the annual anniversary date, the payment isi increased by 3%. The lease receivable is measured as the present value oft the future minimum rent payments expected to be received during the lease term at a discount rate of 5.50%, which is the stated rate in the agreement. There is an optional 60 month extension of the lease agreement which management believes is reasonably certain tol be exercised. Final lease payment based on the extended period oft timei is February 2029. Ini fiscal year 2023, the Town recognized $24,373 of lease revenue and $8,852 ofi interest revenue under the lease.  Capital Assets  Capital asset activity fort the year ended. June 30, 2023, was as follows:  Beginning Balances $ 191,207 $ 659,534 850,741 2,653,261 988,692 1,545,148 1,448,150 158,700 24,458 6,818,409 1,195,266 988,692 1,120,974 344,246 97,043 24,458 3,047,730 3,898.471  Ending Balances 191,207 659,534 850,741 2,653,261 1,008,746 1,898,743 1,490,225 333,675 24,458 7,409,108 1,270,762 1,000,399 1,179,998 393,568 106,412 24,458 3,975,597 3,433,511 4,284,252  Increases  Decreases $  Governmental. Activities: Capital Assets not Being Depreciated: Land Construction in Progress Total Capital Assets not Being Depreciated: Capital Assets Being Depreciated: Buildings Equipment Vehicles and Motor Equipment Infrastructure Land Improvements Furniture Total Capital Assets Being Depreciated: Less Accumulatedl Depreciation Buildings Equipment Vehicles and Motorl Equipment Infrastructure Land Improvements Furniture Total Accumulated Depreciation Total Capital Assets Being Depreciated, net Governmental, Activity Capital Assets, net  20,054 422,514 42,075 174,975 659,618 75,496 11,707 127,943 49,322 9,369  (68,919) (68,919) (68,919)  3,770,679 $ 273,837 $ (68,919)  25    TOWN OF ERWIN, NORTH CAROLINA Notes tot thel Financial Statements For thel Fiscal Year Ended. June 30,2023  Primary Government General Govemment Public Safety Transportation Cultural & Recreational Totall Depreciation. Expense B. Liabilities  Depreciation expense was charged to functions/programs ofthe primary government as follows:  $  49,512 57,760 84,980 81,585 273,837  Pension Plan and Postemployment Obligations Local Governmental Employees' Retirement System  Plan Description. The Town of Erwin is a participating employer in the statewidel Local Governmental: Employees' Retirement System (LGERS), a cost-sharing multiple-employer defined benefit pension plan administered by the State ofl North Carolina. LGERS membership is comprised of general employees and local law enforcement officers (LEOs) of participating local governmental entities. Article 3 ofG.S. Chapter 128 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. Management of the plan is vested in the LGERS Board of Trustees, which consists of 13 members nine appointed by the Governor, one appointed by the State Senate, one appointed by the State House of! Representatives, and the State Treasurer and State Superintendent, who serve as ex-officio members. The Local Governmental Employees' Retirement System is included in the Annual Comprehensive Financial Report for the State of North Carolina. The State's Annual Comprehensive Financial Report includes finançial statements andi required supplementary information for LGERS. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina Benefits Provided. LGERS provides retirement and survivor benefits. Retirement benefits are determined as 1.85% of the member's average final compensation times the member's years of creditable service. A member's average final compensation is calculated as the average ofai member's four highest consecutive years of compensation. Plan members are eligible to retire with full retirement benefits at age 65 with five years of creditable service, at age 60 with 25 years of creditable service, or at any age with 30 years of creditable service. Plan members are eligible to retire with partial retirement benefits at age 50 with 20 years of creditable service or at age 60 with five years of creditable service (age 55 for firefighters). Survivor benefits are available to eligible beneficiaries of members who die while in active service or within 180 days of their last day of service and whol have either completed 20 years of creditable service regardless of age (15 years of creditable service for firefighters and rescue squad members who are killedi in thel line of duty) or have completed fivey years ofs service and have reached age 60. Eligible beneficiaries may elect to receive ar monthly Survivor's Alternate Benefit for life or a return of the member's contributions. The plan does not provide for automatic post-retirement benefit increases. Increases are contingent upon actuarial gains oft the LGERS plan members who are LEOs are eligible to retire with full retirement benefits at age 55 with five years of creditable service as an officer, or at any age with 30; years of creditable service. LEO plan members are eligible to retire with partial retirement benefits at age 50 with 15 years of creditable service as an officer. Survivor benefits are available to eligible beneficiaries ofLEO members who die while in active service or within 180 days of their last day ofs service and who alsol have either completed 20 years ofcreditable service regardless of age, orl have completed 15 years ofs service as al LEO and have reached age 50, or have completed five years of creditable service as a LEO and have reached age 55, or have completed 15 years of creditable service as al LEO if killed in the line of duty. Eligible beneficiaries may elect to receive a monthly Survivor's Alternate Benefit for life or a return oft the member's Contributions. Contribution provisions are established' by General Statute 128-30 and may be amended only by the North Carolina General Assembly. Town of Erwin employees are required to contribute 6% oft their compensation. Employer contributions are actuarially determined and set annually by the LGERS Board ofTrustees. The Town of Erwin's contractually required contribution rate for the year ended June 30, 2023, was 13.04% of compensation for law enforcement officers and 12.18% for general employees and firefighters, actuarially determined as an amount  27699-1410, by caling(919)981-5454, or at www.osc.nc.gov.  plan.  contributions.  26    TOWN OF ERWIN, NORTH CAROLINA Notes tot thel Financial Statements For thel Fiscal Year Ended. June 30, 2023  that, when combined with employee contributions, is expected to finance the costs of benefits earned by employees during the year. Contributions to the pension plan from the Town of Erwin were $140,336 for the year ended. June Refunds ofContributions- - Town employees who have terminated service as a contributing member OfLGERS, may file an application for a refund of their contributions. By state law, refunds to members with at least five years of service include 4% interest. State law requires a 60 day waiting period after service termination before the refund may be paid. The acceptance ofai refund payment cancels the individual's right to employer contributions or any Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources At. June 30, 2023, the Town reported a liability of $879,499 for its proportionate share of the net pension liability. The net pension liability was measured as of. June 30, 2022. The total pension liability used to calçulate the net pension liability was determined by an actuarial valuation as of December 31, 2021. Thet total pension liability was then rolled forward to the measurement date of. June 30, 2022 utilizing update procedures incorporating the actuarial assumptions. The Town's] proportion of the net pension liability was based on a projection of the Town's long-term share of future payroll covered by the pension plan, relative to the projected future payroll covered by the pension plan of all participating LGERS employers, actuarially determined. At June 30, 2022 (measurement date), the Town's proportion was 0.01559%, which was an increase of 0.00167% from its proportion measured as of June 30, For the year ended. June 30, 2023, the Town recognized pension expense of $252,429. At June 30, 2023, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following  30, 2023.  other benefit providedbyl LGERS. Related to Pensions  2021. sources:  Deferred Outflows of Resources 37,897 $ 87,754 290,684 15,007 140,336 571,678 $  Deferred] Inflows ofResources 3,716  Differences between expected and actual experience Net difference between projected and actual eamings on Changes inj proportion and differences between Town contributions and proportionate share ofc contributions Town contributions subsequent to the measurement date  Changes ofassumptions pension plan investments  13,541 17,257  Total  $  $140,336 reported as deferred outflows of resources related to pensions resulting from Town contributions subsequent to the measurement date will be recognized as an increase of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred inflows of resources related to pensions will be recognized in  pension expense as follows: Year endedJune 30: 2024 2025 2026 2027  $ $  127,809 110,276 37,513 138,487 414,085  27    TOWN OFI ERWIN, NORTH CAROLINA Notes to thel Financial Statements Fort thel Fiscal Year Ended. June 30, 2023  Actuarial Assumptions. The total pension liability in the December 31, 2021 actuarial valuation was determined using thei following actuarial assumptions, applied to all periods includedi int the measurement:  Inflation Salary increases Investment rate ofreturn  2.50percent 3.25t to 8.25, percent, including inflation and productivity factor 6.50percent, net ofpension plani investment expense, including inflation  The plan currently uses mortality tables that vary by age, gender, employee group (i.e. general, law enforcement officer) and health status (i.e. disabled and healthy). The current mortality rates are based on published tables and based on studies that cover significant portions of the U.S. population. The healthy mortality rates also contain a The actuarial assumptions used in the December 31, 2021 valuation were based on the results of an actuarial Future ad hoc COLA amounts are not considered to be substantively automatic and are therefore not included in the The projected long-term investment returns and inflation assumptions are developed through review of current and historical capital markets data, sell-side investment research, consultant whitepapers, and historical performance of investment strategies. Fixed income return projections reflect current yields across the U.S. Treasury yield curve and market expectations ofi forward yields projected and interpolated for multiple tenors and over multiple year horizons. Global public equity return projections are established through analysis of the equity risk premium and the fixed income return projections. Other asset categories ands strategies' return projections reflect the foregoing and historical data analysis. These projections are combined to produce the long-term expected rate of return by weighting the expected future real rates of retum by the target asset allocation perçentage and by adding expected inflation. The target allocation and best estimates ofarithmetic real rates of return for each major asset class as of] June 30, 2022 are  provision tor reflect future mortality improvements.  experience study for the period. January 1, 2016t through December. 31, 2020.  measurement.  summarized in the following table: Asset Class Fixed Income Globall Equity Reall Estate Altematives Credit Inflation Protection Total  Long-Term Expected Real  Target Allocation Rate of Return  33.0% 38.0% 8.0% 8.0% 7.0% 6.0% 100%  0.9% 6.5% 5.9% 8.2% 5.0% 2.7%  The information above is based on 30-year expectations developed with the consulting actuary for the 2022 asset liability and investment policy study for thel North Carolina Retirement Systems, including LGERS. The long-term nominal rates of return underlying the real rates of return are arithmetic annualized figures. The real rates of return are calculated from nominal rates by multiplicatively subtracting a long-term inflation assumption of 2.50%. All Discount rate. The discount rate used to measure the total pension liability was 6.50%. Thej projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on these assumptions, the pension plan'sf fiduciary net position was projected tol be available to make all projected future benefit payments oft the current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total  rates ofreturn andi inflation are annualized.  pension liability.  28    TOWN OF ERWIN, NORTH CAROLINA Notes tot thel Financial Statements For thel Fiscal Year Ended. June: 30, 2023  Sensitivity of the Town's proportionate. share oft the net pension asset to changes in the discount rate. The following presents the Town's proportionate share oft the net pension asset calculated using the discount rate of6.50 percent, as well as what the Town's proportionate share of the net pension asset or net pension liability would be ifit were calculated using a discount rate that is one percentage point lower (5.50 percent) or one percentage point higher (7.50  percent) than the currenti rate: Town's proportionate share ofthe net pension liability (asset)  1% Decrease (5.50%) $ 1,587,382 $  Discount Rate (6.50%) 879,499 $  1% Increase (7.50%) 296,162  Pension planj fiduciary net position. Detailed information about the pension plan's fiduciary net position is available int the separately issued Annual Comprehensive Financial Report for the State ofl North Carolina.  b. Law] Enforcement Officers Special Separation Allowance  Plan Description. The Town of Erwin administers aj public employee retirement system (the "Separation. Allowance"),a single-employer defined benefit pension plan that provides retirement benefits to the Town's qualified sworn law enforcement officers under the age of 62 who have completed at least 30 years of creditable service or have attained 55 years of age and have completed five or more years of creditable service. The Separation Allowance is equal to 0.85 percent of the annual equivalent of thel base rate of compensation most recently applicable to the officer for each year of creditable service. Thei retirement benefits are not subject to any increases in salary or retirement allowances that may be authorized by the General Assembly. Article 12D of G.S. Chapter 143 assigns the authority to establish and amend All full-time law enforcement officers of the Town are covered by the Separation Allowance. At December 31, 2021,  benefit provisions tot the North Carolina General Assembly. the Separation Allowance's membership consisted of:  Inactive members currently receiving benefits  3 12 15  Active plan members Total  Summary of Significant Accounting Policies:  Basis of Accounting. The Town has chosen to fund the Separation Allowance on a pay as you go basis. Pension expenditures are made from the General Fund, which is maintained on thei modified accrual basis of accounting. Benefits The Separation Allowance has no assets accumulated in a trust that meets the following criteria which are outlined in The entry age actuarial cost method was used in the December 31, 2021 valuation. The total pension liability in the December 31, 2021 actuarial valuation was determined using the following actuarial assumptions, applied to all periods  and refunds are recognized when due and payable in accordance with thet terms ofthe plan.  GASB Statements 73. Actuarial Assumptions included int the measurement: Discount rate Projected salary increases Includes inflation at  4.31% 3.25-7.75 percent, including inflation and productivity factor 2.50percent  The discount rate used to measure the' TPL: is the S&PI Municipal Bond 20 Year High Grade Rate Index. All mortality rates use Pub-2010 amount-weighted tables. All mortality rates are projected: from 2010 using generational  improvement with Scalel MP-2019.  29    TOWN OF ERWIN, NORTH CAROLINA Notes tot thel Financial Statements For the Fiscal Year Ended. June 30, 2023  Contributions.  The Town is required by Article 12D ofG.S. Chapter 143 toj provide these retirement benefits and has chosen to fund the amounts necessary to cover the benefits earned on a pay as you go basis through appropriations made in the General Fund operating budget. There were no contributions made by employees. The Town's obligation to contribute to this plan is established and may be amended by the North Carolina General Assembly. Administration costs of the Separation Allowance are financed throughi investment earnings. The Townj paid $25,834 as benefits came Pension Liabilities. Pension Expense. and Deferred Outflows of Resources and Deferred) Inflows ofl Resources Related to At June 30, 2023, the Town reported a total pension liability of $330,004. The total pension liability was measured as of December 31, 2022 based on a December 31, 2021 actuarial valuation. The total pension liability was then rolled forward to the measurement date of December 31, 2022 utilizing update procedures incorporating the actuarial assumptions. For the year ended. June 30, 2023, the Town recognized pension expense of$32,651.  due for the reporting period. Pensions  Deferred Outflows of Resources $ 19,880 $ 47,377 9,778 $ 77,035 $  Deferred! Inflows ofResources 27,647 49,488 77,135  Differences between expected and actual experience Changes ofassumptions and otheri inputs Benefit payments and administrative expenses subsequent to ther measurement date.  Total  $9,778 paid as benefits came due and $0 of administrative expenses subsequent to the measurement date have been reported as deferred outflows of resources and willl be recognized as a decrease of the total pension liability in the year ended. June 30, 2024. Other amounts reported as deferred inflows of resources related to pensions will be recognized in  pension expense as follows:  Year endedJune. 30: 2024 2025 2026 2027 2028 Thereafter  $  1,081 2,245 (3,504) (8,218) (1,482) (9,878)  $  Sensitivity oft the Town's total pension liability to changes in the discount rate. The following presents the Town's total pension liability calculated using the discount rate of 4.31 percent, as well as what the Town's total pension liability would be ifit were calculated using a discount rate that is l-percentage-point lower (3.31 percent) or l-percentage-point  higher (5.31 percent) thant the current rate:  1% Decrease (3.31%) $ 354,688 $  Discount Rate (4.31%) 330,004 $  1% Increase (5.31%) 307,867  Totall Pension Liability  30    TOWN OF ERWIN, NORTH CAROLINA Notes to the Financial Statements Fort thel Fiscal Year Ended. June 30, 2023 Schedule ofChanges in' Totall Pension) Liability Lawl Enforcement Officers' Special Separation. Allowance  2023 368,597 21,810 8,003 11,318 (53,890) (25,834) 330,004  Beginning! balance Service Cost Interest on thet total pension liability Changes ofbenefit terms Differences between expected and actual experience in ther measurement ofthet totalpension liability Changes ofassumptions orotheri inputs Benefit payments Other changes Ending balance ofthet totalj pension liability  $  The plan currently uses mortality tables that vary by age, and health status (i.e. disabled and healthy). The current mortality rates are based onj published tables and based on studies that cover significant portions oft the U.S. population. The actuarial assumptions used in the December 31, 2021 valuation were based on the results of an experience study completed by the Actuary for the Local Governmental EmployeesAerm Retirement System for the five-year period Total Expense, Liabilities, and Deferred Outflows and Inflows of Resources of Related to Pensions Followingi is information related tot thej proportionate share and pension expense for all pension plans:  Thel healthy mortality rates also contain aj provision to reflect future mortality improvements.  ending December 31,2019.  LGERS $ 252,429 $ 879,499 0.01559% 37,897 87,754 290,684 15,007 140,336 3,716  LEOSSA  Total  Pension Expense Pension Liability  32,651 $ 285,080 330,004 1,209,503 N/A 19,880 47,377  Proportionate share ofther net pension liability Deferred ofOutflows ofResources Differences between expected and actual experience Changes ofassumptions Net difference between projected and actual earnings onj plan investments Changes in proportion and differences between contributions andj proportionate share of contributions Benefit payments and administrative costs paid subsequent toi the measurement date Deferred ofInflows ofResources Differences between expected and actual experience Changes ofassumptions Net differencel between projected and actual eamings onj plan investments Changes inj proportion and differences between contributions and proportionate sharec of contributions  57,777 135,131 290,684 15,007 150,114 31,363 49,488  9,778 27,647 49,488  13,541  13,541  31    TOWN OFI ERWIN, NORTH CAROLINA Notes tot thel Financial Statements Fort thel Fiscal Year Ended. June 30,2023  Supplemental Retirement Income Plan  Plan Description. The Town contributes to the Supplemental Retirement Income Plan (Plan), a defined contribution pension plan administered by the Department of State Treasurer and al Board of Trustees. The Planj provides retirement benefits to all qualifying employees employed by the Town. Article 5 of G.S. Chapter 135 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. The Town also contributes on behalfof all other employees. The Supplemental Retirement Income Plani forl Law Enforcement Officers isi included int the. Annual Comprehensive Financial Report for the State of North Carolina. The State's Annual Comprehensive Financial Report includes the pension trust fund financial statements for the Internal Revenue Code Section 401(k) plan that includes Supplemental Retirement Income Plan for Law Enforcement Officers. That report may be obtained by writing to the Office ofthe State Controller, 14101 Mail Service Center, Raleigh, North Carolina 27699-1410, or by calling (919).981- Funding Policy. Article 12E of G.S. Chapter 143 requires the Town to contribute each month an amount equal to five percent of each law enforcement officer's salary, and all amounts contributed are vested immediately. For all other plan members, the Town contributes two percent. Also, plan members may make voluntary contributions to the plan. Contributions for the year ended. June 30, 2023 were $79,937, which consisted of $57,172 from the Town and $22,765  5454.  from employees. d. Other Post Employment Benefits Healthcare Benefits  Plan Description. Under the terms of a Town resolution, the Town administers a single-employer defined benefit healthcare plan ("the Retiree Health Plan"). The Plan provides postemployment healthcare benefits to retirees of the Town, provided they participate int the North Carolinal Local Governmental: Employees' Retirement System (System) and who retire with 20 years of service and are over sixty years of age, the' Town pays 50% of the cost of coverage. For employees who retire with 25 years of service, regardless of their age, the Town pays 75% oft the cost of coverage. For employees who retire with 30 years of service, the Town pays the full cost of coverage for those benefits. The Town pays the full cost of coverage for employees' benefits through private insurers and employees have the option of purchasing dependent coverage at the Town's group rates. Retirees who qualify for coverage receive the same benefits as active employees. Coverage for all retirees who are eligible for Medicare will be transferred to a Medicare Supplemental plan after qualifying for Medicare. The Town Council may amend the benefit provision. A separate report was noti issued fort the plan. New employees are note eligible for this benefit regardless oft theiry years ofservice. Membership oft thel HCBI Plan consisted of the following at] June 30, 2022, the date of the latest actuarial valuation:  Law Enforcement Employees 3 12 15  General Employees  Retirees receiving benefits Terminated plan members entitled tol but not yetr receiving benefits Active plan members Total Total OPEB Liability valuation as oft that date.  11 11  The Town's total OPEB liability of $720,572 was measured as of June 30, 2022 and was determined by an actuarial  32    TOWN OF ERWIN, NORTHCAROLINA Notes to thel Financial Statements Fort thel Fiscal Year Ended. June 30, 2023  Actuarial assumptions and other inputs. The total OPEB liability in the June 30, 2022 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the  measurement unless otherwise specified:  Inflation Salary increases General Employees Discount rate Healthcare cost trend rates Pre-Medicare Medical and Prescription Drug measurement date. Changes in the Total OPEB Liability  2.50% 3.25%to8 8.41% 3.54% 4.50%1 by 2032  Law! Enforcement Employees 3.25%to7 7.90%  7.00percent for 2022 decreasing to an ultimate rate of  The discount rate is based on the yield of the S&P Municipal Bond 20 Year High Grade Rate Index as of the  Total OPEB Liability 722,616 29,195 15,933 57,032 (75,689) (28,515) (2,044) 720,572  Total Changes in OPEB Liability Balance at. June 30, 2022 Changes fort they year Service cost Interest Change in benefit terms Differences between expected and actual experience Changes in assumptions or otheri inputs Benefit payments Net changes Balance at. June 30, 2023  Changes in assumptions and otheri inputs reflect a change int the discount rate: from 2.169103.5496.  Mortality rates were based oni the Pub-2010 mortality tables, with adjustments for LGERS experience and generational The demographic actuarial assumptions for retirement, disability incidence, withdrawal, and salary increases used in the June 30, 2022 valuation were based on the results of an actuarial experience study for the period January 1, 2015 Sensitivity of the total OPEB. liability to changes in the discount rate. The following presents the total OPEB liability of the' Town, as well as what the Town's total OPEBI liability would be ifit were calculated using a discount rate that is -percentage-point lower (2.54 percent) or 1-percentage-point higher (4.54 percent) than the current discount rate:  mortality improvements using Scale MP-2019.  through December 31, 2019, adopted by the LGERS Board.  1% Decrease  Discount Rate (3.54%)  1% Increase  TotalOPEBLiabilily  $  792,254 $  720,572 $  656,894  Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The following presents the total OPEB liability of the Town, as well as what the Town's total OPEB liability would be ifit were calculated using healthcare cost trend rates that are l-percentage-point lower or l-percentage-point higher than the current healthcare  cost trend rates: Total OPEBI Liability  1% Decrease  Current  1% Increase  d$  650,695 $  720,572 $  803,291  33    TOWN OFI ERWIN, NORTHCAROLINA Notes to thel Financial Statements Fort thel Fiscal Year Ended. June 30, 2023  OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended June 30, 2023, the Town recognized OPEB expense of $34,536. At June 30, 2023, the Town reported deferred outflows ofresources and deferred inflows ofresources related to OPEB from the following sources:  Deferred Outflows of Resources $ 125,384 $ 252,967 77,553 15,750 218,687 $ 334,506  Deferred Inflows of Resources 81,539  Differences between expected and actual experience Benefit payments made and administrative expenses for OPEB made subsequent to the measurement date.  Changes ofassumptions Total  $15,750 reported as deferred outflows of resources related to pensions resulting from benefit payments made and administrative expenses incurred subsequent to the measurement date will be recognized as a decrease of the total pension liability in the year ended. June 30, 2024. Other amounts reported as deferred inflows of resources related to  pensions willl be recognized inj pension expense as follows:  Year endedJune. 30: 2024 2025 2026 2027 2028 Thereafter  $ (14,522) (14,522) (14,522) (13,417) (11,376) (63,210) (131,569)  2. Other Employment Benefit  The Town has elected to provide death benefits to employees through the Death Benefit Plan for members of the Local Governmental Employees' Retirement System (Death Benefit Plan), a multiple-employer, State-administered, cost- sharing plan funded on a one-year term cost basis. The beneficiaries of those employees who die in active service after one year of contributing membership int the System, or who die within 180 days after retirement ort termination ofs service and have at least one year of contributing membership service in the System at the time of death are eligible for death benefits. Lump sum death benefit payments to beneficiaries are equal to the employees' 12 highest months salary in a row during the 241 months prior tot the employee's death, but the benefit may not exceed $50,000 or be less than $25,000. Because all death benefit payments are made from the Death Benefit Plan and not by the Town, the Town does not determine the number of eligible participants. The Town has no liability beyond the payment of monthly contributions. The contributions to the Death Benefit Plan cannot be separated between thej post-employment benefit amount and the other benefit amount. Contributions are determined as a percentage of monthly payroll based upon rates established annually by the State. Separate rates are set for employees not engaged in law enforcement and for law enforcement  officers. The Town considers these contributions to be immaterial.  34    TOWN OFI ERWIN, NORTH CAROLINA Notes tot thel Financial Statements Fori thel Fiscal Year Ended. June 30, 2023  3. Deferred Outflows and] Inflows of! Resources Deferred outflows of resources are comprised oft thei following:  Source  Amount $ 140,336 9,778 15,750 183,161 212,684 290,684 15,007 867,400  Contributions toj pension plani in current fiscaly year Benefit payments made and administrative expenses for LEOSSA made subsequent tot thei measurement date. Benefit payments made and administrative expenses for OPEBI mades subsequent to ther measurement date. Differences between expected and actual experience Net differencel between projected and actual earnings on Changes inj proportion and differences between employer contributions and proportionate share ofcontributions  Changes ofassumptions investments Total  Deferredi inflows ofr resources are comprised oft the following:  Statement of Net Position 1,894 $ 131,786 284,330 131,027 13,541 562,578 $  General Fund Balance Sheet 1,894 30,375 131,786  Prepaid taxes (Generall Fund) Taxes Receivable (Generall Fund) Lease Receivable (Community Enhancement Fund) Differences between expected and actual experience Net difference between projected and actuale earnings on pension plani investments Changes ofassumptions Changes inj proportion and differences between employer contributions and proportionate share ofcontributions  Total 4. Risk] Management  164,055  The Town is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Town has insurance coverage through the Travelers Insurance Company and obtains general liability and auto liability coverage of $1 million per occurrence, property coverage up tot the total insured values oft the property policy, workers' compensation coverage upi to statutory limits, and The Town carries commercial coverage for all other risks ofl loss. There have beeni no significant reductions ini insurance coverage in the prior year, and settled claims have not exceeded coverage in any oft thej past threei fiscal years. The Town In accordance with G.S. 159-29, the Town's employees that have access to $100 or more at any given time of the Town's funds are performance bonded through a commercial surety bond. The finance officer and tax collector are eachi individually bonded for $80,000 and $10,000, respectively. Two remaining clerks are bonded for $10,000 each.  employee health coverage  has obtained floodi insurance for areas subject to flooding.  35    TOWN OF ERWIN, NORTH CAROLINA Notes to thel Financial Statements Fori thel Fiscal Yearl Ended. June 30, 2023  5. Claims. Judgments and Contingent Liabilities  At June 30, 2023, the Town was a defendant to various lawsuits. In the opinion of Town's management and the Town Attorney, the ultimate effect of these legal matters will not have a material adverse effect on the Town's financial  position. 6. Long-Term Obligations Changes in] Long Term] Liabilities  Current Portion ofBalance  Beginning Balance 368,597 722,616 75,818 1,380,508  Ending Decreases Balance $ 879,499 $ (38,593) 330,004 (2,044) 720,572 (109,130) 106,347 (149,767) 2,036,422  Increases  Govemmental Activities: Totall Pension Obligation(LEO) OPEB Obligation Compensated. Absences TotalGovemmental. Activities  Net Pension Liability(LGERS) $ 213,477 $ 666,022 $  139,659 805,681  106,347 106,347  Thel legal debt margin oft the Town at. June 30, 2023 was $29,224,376. Balances duet to/from other funds at] June 30,2023, consist oft the following:  Interfund) Balances and Activity  Receivablel Fund  Payable Fund  Amount $ 120,731 120,731  Community Enhancement Fund General Fund  The above due to/ffomtransaction was ther result ofcommon usage oft fthe central depository account when the Community Enhancement Fund upfronts funding for capital projects until grant reimbursements. are received. The Towni is in thej process ofclearing out these accounts  and has sent the board ap plan toj pay the amount back.  D. Fund) Balance  The following schedule provides management and citizens with information on the portion of General fund balance  that is available for appropriation:  Total fund balance-Genera!. Fund Less: Stabilization by State Statute Streets Powell Bill Public Safety AppropriatedF Fund] Balance in 2023-241 Budget Remaining Fundl Balance  $4,931,750 413,480 320,059 2,076 4,196,135  36    TOWN OF ERWIN, NORTH CAROLINA Notes tot thel Financial Statements Fort thel Fiscal Yearl Ended. June 30, 2023  NOTE4: SUMMARY DISCLOSURE OF SIGNIFICANT CONTINGENCIES  Federal and State Assisted Programs  The Town has received proceeds from several federal and state grants. Periodic audits of these grants are required and certain costs may be questioned as not being appropriate expenditures under the grant agreements. Such audits could result in the refund of grant moneys to the grantor agencies. Management believes that any required refunds willl be immaterial. No provision has been madei int the accompanying financial statements for the refund of grant moneys.  NOTE5: MANAGEMENT'S) REVIEW OF SUBSEQUENT EVENTS  Management has evaluated subsequent events through November 14, 2023, the date which the financial statements were  available fori issue.  37    TOWN OF ERWIN  ERWIN, NORTH CAROLINA  This page left blank intentionally    Required Supplementary Financial Data  The section contains additional statements required by Governmental Accounting Standards Board.  Schedule of Changes in' Total Pension. Liability- Law Enforcement Officers' Special Separation. Allowance Schedule ofTotal Pension Liability as a Percentage of Covered] Payroll- Law Enforcement Officers' Special Separation Allowance  Other Postemployment Benefits Schedule of Funding Progress Other Postemployment Benefits Schedule of Employer Contributions Employees'. Retirement System  Schedule ofl Proportionate Share ofl Net Pension Liability (Asset) Local Government Schedule of Contributions tol Local Government Employees' Retirement System    0    0    9    1    9    Supplementary Statements  he section contains additional statements required by the Local Government Commission  in North Carolina.        Town of Erwin, North Carolina General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances- Budget and Actual For the Fiscal Year Ended June 30, 2023  Variance Positive (Negative)  Budget  Actual  Revenues: Ad valorem taxes: Ad valorem taxes Penalties and interest Total Other taxes and licenses: Fire protection charges Autol liçenses Total  $  $ 1,705,667  1,747,396 $ 9,852 1,757,248 344,677 28,304 372,981 1,019,951 8,020 16,610 142,923 11,053 11,096 3,730 21,698 1,235,081 150,523 147 50,000 200,670  51,581  379,658  (6,677)  Unrestricted intergovernmental: Local option sales taxes Gasoline tax refund Telecommunications: tax Utility franchise tax Piped natural gas Video franchise fee Solid Wastel Disposal Tax Beer and wine tax Total Restricted intergovernmental: Powell Bill Allocation Controlled Substance Tax Harnett County Grant Total Permits and fees: Inspection fees Business registration fees Zoning permits Court fees Total Sales and services: Schooll Resource Officers Recreation department Concessions, sponsorships & donations Sponsors donations/entry fees Mowing Contract Library fees Collection fees Garbage ands storm water Total  1,012,002  223,079  200,000  670  289 16,975 231 17,495 57,344 17,557 34,800 11,924 94 9,392 511,844 642,955  13,500  3,995  620,006  22,949  43    Town of] Erwin, North Carolina General Fund Schedule of Revenues, Expenditures, and Changes inl Fund Balances- Budget and Actual For the Fiscal Year Ended. June 30, 2023  Variance Positive (Negative)  Budget  Actual 103,138 53,000 156,138 4,382,568  Other Revenues: Investment earnings Miscellaneous Total Other Revenues Totall Revenues General Government: Governing Body: Salaries Benefits Other Operating Expenses Capital Outlay Total Governing Body Adminstration: Salaries Benefits Professional Expenses General Insurance Other Operating Expenses Capital Outlay Total Adminstration Planning: Salaries Benefits Contracted Services Other Operating Expenses Capital Outlay Total Adminstration  47,586 3,978,419  108,552 404,149  21,675 1,658 5,569 28,902 202,577 100,727 10,542 72,271 165,184 42,075 593,376 30,756 12,605 57,437 4,383 105,181 (134,927) 592,532 570,214 227,671 185,358 51,448 1,034,691  36,115  7,213  681,773  88,397  161,686 (134,927) 744,647  56,505 152,115  ARPA Revenue. Replacement Expense Offset Total General Government  Public safety: Police: Salaries Benefits Other Operating Expenses Capital Outlay Total  1,190,369  155,678  44    Town ofE Erwin, North Carolina General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances- Budget and Actual For the Fiscal Year Ended June 30, 2023  Variance Positive (Negative) 10,794 166,472  Budget 350,158 (344,063) 1,196,464  Actual 339,364 339,364 (344,063) 1,029,992 99,675 40,650 155,738 11,412 170,890 35,038 (74,114) 439,289 64,251 23,619 35,758 123,628 27,424 27,424 (54,071) 96,981 17,156 282,184 379,708 679,048  Fire: Contract Services Total  ARPAI Revenue. Replacement Expense Offset Total Public Safety Streets: Salaries Benefits Other Operating Expenses Capital Outlay Powell) Bill Contracted Services ARPA: Revenue Replacement Expense Offset Total Transportation Public works: Administration Salaries Benefits Other Operating Expenses Capital Outlay Total Administration Storm Water: Other Operating Expenses Total Storm' Water ARPA Revenue Replacement) Expense Offset Totall Public Works Environmental protection: Sanitation: Other Operating Expenses Contracted Services Capital Outlay Total Environmental Protection  538,707  99,418  140,529 97,000 (54,071) 183,458  16,901 69,576 86,477  751,244  72,196  45    Town ofl Erwin, North Carolina General Fund Schedule of] Revenues, Expenditures, and Changes in Fund Balances- Budget and Actual For the Fiscal Year] Ended. June 30, 2023  Variance Positive (Negative)  Budget  Actual 155,707 51,030 60,349 88,660 174,975 530,721 3,373 1,469 69,405 8,716 82,963 (67,463) 546,221 3,384,063 998,505 998,505 $ 3,933,245 4,931,750  Culture and recreation: Parks and recreation: Salaries Benefits Contracted Services Other Operating Expenses Capital Outlay Total parks andi recreation Community and library building: Salaries Benefits Contracted Services Other Operating Expenses Capital Outlay Total community and library building ARPA Revenue Replacement Expense Offset Total Culture and Recreation Total Expenditures Revenues over (under) expenditures Fund] Balance. Appropriated Net Change in] Fund Balance Fund] Balances, beginning Fund] Balances, ending  568,725  38,004  89,637 (67,463) 590,899 4,005,419 (27,000) 27,000  6,674 44,678 621,356 1,025,505 (27,000) 998,505  46    Town ofl Erwin, North Carolina AI Woodall Park Improvements Capital Project Schedule of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual From) Inception and fort the Fiscal Year Ended. June 30, 2023  Actual Current Year  Project Authorization  Prior Years  Total tol Date  Positive (Negative) (18,414) (137,900) (156,314) 36,809 (119,505) 534,678 534,678 415,173  Revenues: Restricted Intergovernmental Grant Donations Totall Revenue Expenditures: Capital Outlay Totall Expenditures Revenues Over(Under) Expenditures Other Financing Sources(Uses) Transfers- In (Out) From/(To). Enhancement Total Other Financing Sources (Uses) Revenues and Other Sources Over Other Uses Fund Balance Fund Balances, beginning Fund Balances, ending  $ 339,678 $ 305,710 $ 15,554 $ 321,264 $  195,000 534,678 679,356 (144,678) 144,678 144,678  48,100 353,810 642,547 642,547 (288,737) 679,356 679,356 $ 390,619  9,000 24,554  57,100 378,364 642,547 642,547 (264,183) 679,356 679,356  24,554  24,554 $ 415,173 $  390,619 415,173  47    Town ofl Erwin, North Carolina American Relief Plan Fund Schedule of Revenues, Expenditures and Changes inl Fund Balance-Budget and Actual From) Inception and for the Fiscal Year Ended. June 30, 2023  Actual Current Year 674,638 134,927 344,063 67,463 54,071 74,114 674,638  Variance Positive (Negative)  Project Authorization 1,643,205  Prior Years 227,701  Total tol Date 902,339 134,927 344,063 67,463 54,071 74,114 227,701 902,339  Revenues:  Restricted! Intergovemmental Federal Grant Total Revenue Expenditures: General Government Public Safety Cultural and] Recreational Public Works Transportation Payroll Cost Capital Outlay Total Expenditures Revenues Over(Under) Expenditures Fund] Balance. Appropriated Revenues and Other Sources Over Other Uses Fund Balance Fund Balances, beginning Fund Balances, ending  $ 1,643,205 $ 227,701 $ 674,638 $ 902,339 $ (740,866)  (740,866)  227,701 227,701  1,643,205  740,866  48    Town of Erwin, North Carolina Community Enhancement Fund Schedule of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual For thel Fiscal Year Ended. June 30, 2023  Variance Positive (Negative)  Budget $  Actual  Revenues: Sales and services: Land Lease Interest Interest onl Lease Receivable Totall Revenue Fund Balance Appropriated Revenues and Other Sources Over Other Uses Fund Balance Fund Balances, beginning Fund Balances, ending  $ 24,373 $ 24,373 6,317 8,852 39,542  6,317 8,852 39,542  39,542 $ 39,542  2,695,532 2,735,074  49    Town of] Erwin, North Carolina Combining Balance Sheet Nonmajor Governmental Fund For the Fiscal Year Ended. June 30,2023  SCIF Grant  Total Nonmajor Funds 30,847 93,114 548 124,509  Community Bldg Priebe Field Governmental Capital Project Capital Project  Assets  Cash and Cash] Equivalents $ Restricted Cash Due From Other Governments Total Assets Liabilities and Fund Balances Liabilities: Accounts Payable Advance from other government Due to Other Funds Totall Liabilities Fund Balance: Restricted Stabilization by State Statute Cultural and Recreation Committed Cultural and Recreation Unassigned Totall Fund! Balances Total Liabilities and Fund Balances  $ 93,114 93,114 $  30,847 $ 548 31,395 $  $  $  a  93,114 93,114  93,114 93,114.00  548 30,847 31,395 31,395 $  548 30,847 31,395 124,509  $  93,114 $  50    Town of Erwin, North Carolina Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Governmental! Fund For the Fiscal Year Ended. June 30,2023  SCIF Grant  Totall Nonmajor Funds  Community Bldg Priebe Field Governmental Capital Project Capital Project  Revenues:  Restricted Intergovermental State Grants Miscellaneous Income Interest onl Investments Total) Revenue Expenditures: General Government Cultural and Recreational Total Expenditures Revenues Over(Under) Expenditures Fund Balance Fund Balances, beginning Fund] Balances, ending  $  4$  $ 17,551 17,551 9,202 9,202 8,349 23,046 31,395  4 17,551 17,555 4 9,202 9,206 8,349 23,046 31,395  4 4  51    Town of! Erwin, North Carolina Capital Projects Fund- SCIF Grant Community Building Schedule of] Revenues, Expenditures and Changes in Fund Balance-Budget: and Actual From Inception and fori the Fiscal Year Ended June 30, 2023  Actual Current Year  Variance Positive (Negative) (93,114) (93,114)  Project Authorization $ 100,000 $ 100,000  Prior Years 6,882 $ 6,882 6,882 6,882  Total tol Date 6,886 $ 6,886 6,886 6,886  Revenues:  Restricted Intergovermental SCIF Grant Total Revenue Expenditures: Operating Expenditures Capital Outlay Totall Expenditures Revenues Over(Under) Expenditures Fund Balance Fund Balances, beginning Fund Balances, ending  4$ 4 4  100,000  93,114  52    Town of Erwin, North Carolina Priebe Field Special Revenue Fund Schedule of Revenues, Expenditures: and Changes in Fund Balance-Budget and Actual Fort the Fiscal Year Ended. June 30, 2023  Variance Positive (Negative) 7,551  Budget 10,000  Actual 17,551 17,551 9,202 9,202 8,349  Revenues:  Donation and Field] Rental Total Revenue Expenditures: Cultural and) Recreation Operating Expenses Totall Expenditures Revenues Over(Under) Expenditures Fund Balance. Appropriated Revenues and Other Sources Over Other Uses Fund Balance Fund Balances, beginning Fund Balances, ending  10,000  798 8,349  8,349 $ 23,046 31,395  8,349  53    TOWN OF ERWIN  ERWIN, NORTH CAROLINA  This page left blank intentionally    OTHER SCHEDULES  This section includes additional information on property taxes.  - Schedule of Ad Valorem Taxes Receivable Analysis of Current Tax Levy    Town of] Erwin, North Carolina General Fund Schedule of Ad' Valorem Taxes Receivable June 30, 2023  Unçollected Balance July1,2022 $ 16,338 5,568 4,204 2,652 2,185 1,688 1,256 1,177 1,279 36,347 Less: Allowance for uncollectable accounts: General Fund Add Auto Tags Receivable Ad valorem taxes receivable net Reconcilement withi revenues: Ad valorem taxes- General Fund Fire protection charges General Fund Reconciling items: Interest collected Releases Subtotal Total collections and credits  Uncollected Balance June 30, 2023 17,701 8,163 4,984 3,767 2,652 2,185 1,608 1,229 1,177 1,279 44,745 (15,000) 630 30,375  Collections And Credits $ 2,082,801 $ 8,175 584 437 80 27  Fiscal Year 2022-2023 2021-2022 2020-2021 2019-2020 2018-2019 2017-2018 2016-2017 2015-2016 2014-2015 2013-2014 2012-2013  Additions 2,100,502  2,100,502  2,092,104  $ 1,757,248 344,677 (9,852) 31 (9,821) 2,092,104  54    Town of] Erwin, North Carolina Analysis of Current' Tax Levy Town- Wide Levy For the Fiscal Year Ended. June 30, 2023  Totall Levy Property excluding Registered Motor Vehicles 1,869,794 1,869,794 17,701 99.05%  Town- - Wide Rate  Registered Motor Vehicles  Property Valuation 365,304,696 365,304,696  Total Levy 2,100,502 2,100,502 17,701 99.15%  Original levy: Property taxed at current year's rate Total  0.575 $ 2,100,502 $ 1,869,794 $ 230,708  230,708 230,708  Total property valuation $ 365,304,696  Net levy  Uncollected taxes at. June 30, 2023 Current year's taxes collected Current levy collection percentage  $ 2,082,801 $ 1,852,093 $ 230,708  100.00%  55    TOWN OF ERWIN  ERWIN, NORTHCAROLINA  This page left blank intentionally    COMPLIANCE SECTION        Thompson, Price, Scott, Adams & Co., P.A. Post Office Box 1690 Elizabethtown, North Carolina 28337 Telephone (910) 862-8129 Fax (910)862-8120  R. Bryon Scott, CPA Gregory S. Adams, CPA Alan W. Thompson, CPA  CEETInED  Report Onl Internal Control Over Financial Reporting And On Compliance and Other Matters Based On An Audit Of Financial Statements Performed In Accordance With Government. Auditing Standards  Independent Auditor's Report  Tot the Honorable. Mayor and Members oft the' Town Council Town ofErwin, North Carolina  Wel have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the Town of Erwin, North Carolina, as of and for the year ended. June 30, 2023, and relatedi notes to the financial statements, which collectively comprises the Town of! Erwin's basic financial Inj planning and performing our audit of the financial statements, we considered the Town of Erwin's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate ini the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness oft the Town of] Erwin'si internal control. Accordingly, we do not express A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that therei isar reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A. significant deficiency is a deficiency or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit Our consideration of the internal control was for the limited purpose described in the first paragraph of this section and was not designed toi identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that] have not been identified. We didi identify certain deficiencies in internal control, described in the accompanying schedule of findings and responses that we consider As part of obtaining reasonable assurance about whether the Town of Erwin's financial statements are free from material misstatement, we performed tests of its compljance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required tol be reported under Government. Auditing Standards.  statements, and havei issued our report thereon dated November 14, 2023. Report on Internal Control Over Financial Reporting  an opinion on the effectiveness oft the' Town's internal control.  attention by those charged with governance.  tol be a significant deficiency, 2023-001. Report on Compliance and Other Matters  56  Members  American Institute ofCPAs- N.C. Association OfCPAS-AICPAI Division of Firms    Town of] Erwin's Responses to Findings  Government Auditing Standards requires the auditor to perform limited procedures on the Town of Erwin's responses to the findings identified in our audit are described in the accompanying schedule of findings and responses. The Town's response was not subjected to the auditing procedures applied in the audit of the financial The purpose of this report is solely to describe the scope of our testing ofi internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not  statements and, accordingly, we express no opinion oni it.  Purpose oft this Report  suitable for any other purpose. 7komÉson, Price, Scott, Adams &DPA Elizabethtown," North Carolina November 14,2023  57    Town ofl Erwin, North Carolina Schedule of] Findings and] Responses Fort the Fiscal Year Ended. June 30, 2023  Section I.  Summary of Auditor's Results  Financial Statements  Type ofreport the auditor issued on whether the financial statements audited were prepared in accordance  toGAAP: Unmodified Internal control over financial reporting: Material weakness(es) identified? Significant Deficiency(s) identified? Noncompliance material to financial statements noted?  yesX_o Xyes  none reported  yes Xno  58    Town ofl Erwin, North Carolina Schedule of Findings and] Responses For the! Fiscal Year Ended June 30, 2023 Section II- Financial Statement Findings  SIGNIFICANT DEFICIENCIES 2023-001 Segregation ofDuties  Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording ofa transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled Condition: Key duties and functions are not segregated amount Town personnel. This is especially a concern in cash management, accounts: receivable, purchasing, andj payroll functions in all departments. Effect: Transactions could be mishandled, due to errors or fraud that could lead to loss of assets or the Cause: There are: al limited number of personnel for certain functions and lack ofboard oversight. Identification ofar repeat finding: Thisis ai repeat finding from thei immediate previous audit, 2022-001. Recommendation: The duties should be separated as much as possible, by possibly training and utilizing non-financial personnel and utilizing alternative controls. The governing board should provide some of Views of responsible officials and planned corrective actions: The Town agrees with this finding and will  appropriately.  reporting ofmisleading financiali information.  these controls.  adhere tot the correction action plan onj page in this audit report.  59    ERWIN FRONT PORCH FRIENDS  Town of Erwin 100 West F. Street Erwin, NC 28339 Corrective Action! Plan For thel Fiscal Year Ended. June 30, 2023 Section II- Financial Statement Findings  SIGNIFICANT DEFICIENCY 2023-001 Segregation ofI Duties Name of contact person: Corrective Action:  Randy L. Baker, Mayor  The duties will be separated as much as possible and alternative controls will be used to compensate for lack of separation. The governing board will become more involved inj providing some of these The Board willi implement the above procedure immediately.  controls.  Proposed Completion Date:  60    TOWNOFERWIN  ERWIN, NORTH CAROLINA  This] page left blanki intentionally    8902  MINUTES CONTINUED FROM JANUARY 4,2 2024 PRESENTATION OF. JANUARY CITIZEN OF THE MONTH Mayor Baker presented him with a Proclamation Plaque. The Proclamation is part ofthese minutes as an attachment. PRESENTATION OF EMPLOYEE OF THE QUARTER Town of] Erwin. Mayor Baker presented her with al Plaque.  Homer. Joseph Ennis Jr ofChicora Road was recognized as the. January 2024 Citizen oft the Month.  Finance Director) Linda Williams was awarded the Quarter 4: 2023 Employee oft the Quarter Award for the  RECESSED  Commissioner Turnage made al motion to recess at 7:25 PM: for ai reception and was seconded by  Commissioner Nelson. Motion Onanimously Approved.  RECONVENED  Commissioner Nelson made a motion to go back into regular session at 7:38 PM and was seconded by  Commissioner Turnage. Motion Unanimously Approved.  PUBLIC HEARING  ZT-2023-006  Commissioner Turnage made a motion to open the Public Hearing and was seconded by Commissioner Town Manager Snow Bowden informed the Board that the applicant was unable to attend the meeting due Mayor Baker stated the rezoning request was a legislative decision and the Board could hear the request without representation from the applicant. Staff was present to present the application. There was no Town Planner Dylan Eure came forward and addressed the Board. Hes stated that the' Town of Erwin received a request to rezone aj piece of property located at 261 Suggs Road Dunn, NC. Said parcel was currently zoned under Industrial and the request was to move it to its neighboring land use type ofbeing under thel Rural District. The owner oft the parcel was Eldridge and Franklin Investments of Clayton North Carolina, who had intentions to sell said parcel for the development ofa single-family home. The Harnett County Tax PIN for the parcel was 1507-28-9258.000. The overall size of the property was 1.9 acres totaling approximately 53,500 Sq Feet with the closest accessible: road being Suggs Road which was off of] Red Hill Church Road. Its current zoning classification was M-1 Industrial but had been used for single-family homes in the past. According to Harnett County GIS, the parcel was approximately .6ofa mile away: from Erwin's corporate limits and was in the municipality's planningj jurisdiction.. According to GIS said parcel was not within a flood zone, wetland, or watershed location. He stated it was important to  Byrd. The Board voted unanimously.  to an emergency at work but wishes to proceed with the request. objection from the Board and the hearing proceeded.    Mayor Randy L. Baker Mayor Pro Tem Ricky W. Blackmon Commissioners Alvester L. McKoy Timothy D. Marbell Charles L. Byrd David Nelson L. William R. Turnage  TOWN OF ERWIN P.O. Box 459. : Erwin, NC28339 Ph: 910-897-5140-Fax: 910-897-5543 www.erwin-nc.org PROCLAMATION RECOGNIZING HOMER JOSEPH ENNIS JR FOR CITIZEN OF THE MONTH  195  2023-2024--011  WHEREAS, the' Town of] Erwin Mayor and Board ofCommissioners: realize that the' Town of Erwin's greatest asset is viewed as the citizens that contribute tirelessly and unselfishly oft themselves to aid in the well-being oft the residents within the community. These citizens display characteristics and qualities in an individual that strive to make ai real difference in the lives ofo children, adults, and WHEREAS, Mr. Homer. Joseph Ennis. Jr of Chicora Road was born in! Fayetteville, NC on September WHEREAS, Mr. Ennis married his wife, Amy, in 2012. Theyl havel been blessed with four children, Krystal, Stephanie, Cody, and Shahna, and four grandchildren, Gage, Grace, Colton, and the newest WHEREAS, Mr. Ennis graduated from" Triton High School: in 1989, andi in 20111 he graduated: from Central Carolina Community College BLET. He worked for thel Harnett County Department of Corrections from 1991-1998. Het then worked as an. Assembler, Welder, and Supervisor at. John Deere TurfCare from 1998-2010: and moved on to work as al Police Lieutenant at Harnett Health from 2010- 2017.1 He was employed by the' Town ofl Erwin as al Part-Time Patrol Officer in October 2016 and then transferred to al Full-Time! Patrol Officer position in May 2017. Hel began serving as the SROOfficer WHEREAS, Mr. Ennis has livedi in Erwin all his life. Hel loves his Town and the people in it. He truly enjoys his job, working inl his Town, and thel big family atmospherel he has with his coworkers. Hei neverl hesitates toj jump in and protect his fellow officers, he always has their backs. Mr. Ennis believes everyone. has goodi in them and tries tol bring that good outi in everyone but will do what he is called to do and take someone downi ift they decide they do not want tol be good. Hei isa al big 80s man, hei is full ofrandom knowledge such as trivia, and loves to tell dad jokes. Hei is al big Philadelphia NOW THEREFORE BEI ITI RESOLVED that the' Town of Erwin Mayor and Board of Commissioners give recognition and appreciation tol Mr. Homer. Josephl Ennis Jri for1 his valuable contributions to the quality ofl lifei in our community and proudly acknowledge! Mr. Homer Joseph  the elderly without desire for recognition, remuneration, or personal gain; and  30, 1971, to Homer and Angelina Ennis.  addition, Corey.  in 20191 untill his promotion tol Lieutenant in September 2020.  Eagles fan and enjoys metal detecting inl his spare time; and  Ennis Jr as the. January 2024 Citizen of the Month. Duly Adopted, this the 4th day of. January 2024.  ATTEST:  Randy) Baker Rb Mayor  Evans, NCCMC  Town Clerk  cbane    8903  MINUTES CONTINUED FROM JANUARY 4,2024  note that this parcel would require a septic and a well approved by Harnett County prior tot thel home  being built.  Commissioner Byrd inquired whether the septic had already been tested.  Mr. Eure stated that he did not believe it had been tested at that time. He went and looked at thej parcel and it looked as though septic and well had been there previously but when pulling deeds and maps for  the property, he could not find any proof ofthat.  Commissioner Marbell confirmed that there was a home on the property in the past.  Mr. Eure stated that was correct.  Mayor Baker reminded the Board that a rezoning request can be used for any permitted use in the zoning  district.  Mayor Baker asked ifanyone was present to speak in favor oft the request. Mayor Baker asked ifanyone was present to speak against the request.  No one came forward. No one came forward.  Commissioner McKoy made ai motion to close the Public Hearing and was seconded by Commissioner Commissioner Byrd made a motion in the affirmative, seconded by Commissioner Nelson, and unanimously approved by the Board that thei impact to the adjacent property owners and the surrounding community is reasonable, and the benefits oft the rezoning outweigh any potential inconvenience or harm  Turnage. The Board voted unanimously.  toi the community.  Reasoning: A single-family dwelling used to be on the property and is surrounded by an existing  neighborhood.  Commissioner Nelson made a motion in the affirmative, seconded by Commissioner Byrd, and unanimously approved by the Board that the requested zoning district is compatible with the existing  Land Use Plan.  Reasoning: According to Erwin's current Land Use Plan done in 2023 the property is assigned to be labeled Industrial. However, all other parcels in use in the area are zoned for residential uses. Mayor Baker: made ai motion in the affirmative, seconded by Commissioner Byrd, and unanimously approved by the Board that the proposal does enhance or maintain the public health, safety, and general Reasoning: Thej proposed. zoning change would allow for thej parcel to provide additional Commissioner Byrd made a motion in the affirmative, seconded by Commissioner Nelson, and unanimously approved by the Board that the request is for a small-scale rezoning and should be evaluated  welfare.  housing for the municipality.  for reasonableness.  Reasoning: This rezoning request includes a single parcel that was occupied by a single-family  home before demolition.    8904  MINUTES CONTINUED FROM JANUARY 4,2024  Commissioner Byrd made ai motion int the affirmative, seconded by Commissioner Nelson, and unanimously approved by the Board that there is a convincing demonstration that all uses permitted under the proposed district classification would bei in the general public interest and not merely in the interest of  an individual or small group.  Reasoning: Rezoning is for a single parcel to be considered residential sO a single-family home  may be built on the parcel.  Commissioner Nelson made a motion in the affirmative, seconded by Commissioner Byrd, and unanimously approved by the Board that there is a convincing demonstration that all uses permitted under the proposed district classification would be appropriate in the area included in the proposed change. (When a new district designation is assigned, any use permitted int the district is allowable, sol long as it meets district requirements, and not merely uses which applicants state they intend to make oft the  property involved.)  Reasoning: The rezoning would only classify a single parcel to be residential like the other Commissioner Byrd made ai motion int the affirmative, seconded by Commissioner Nelson, and unanimously approved by the Board that there is a convincing demonstration that the character ofthe neighborhood will not be materially and adversely affected by any use permitted in the proposed change. Reasoning: The area affected is already zoned under RD and have single-family homes on the  parcels in the surrounding area.  lots.  Commissioner Nelson made a motion in the affirmative, seconded by Commissioner Byrd, and unanimously approved by the Board that the proposed change is in accord with the Land Development  Plan and sound planning principles.  Reasoning: Even though thej parcel is labeled in the 2023 Land Use Plan to be) Industrial all of Commissioner Byrd made a motion that the requested rezoning to RD is compatible with all oft the Town ofErwin's regulatory documents and would not only have aj positive impact on the surrounding community but would enhance the public health, safety, and general welfare as stated int the evaluation. It isr recommended that this rezoning request be Approved and was seconded by Commissioner Nelson. Commissioner Byrd made ai motion to recommend the approval of Ordinance For Map Amendment Case #ZT-2023-006. Amendment To The Official Zoning Map Tol Rezone From Industrial (M-1)To Rural District (RD)] Per Zoning Ordinance. Article XXIII For Harnett County PIN 1507-28-9258.000 ORD 2023-2024: 004 and was seconded by Commissioner Nelson. The Board voted unanimously.  the surrounding parcels being used are for Residential uses.  The Board voted unanimously  School Safety Zone  Commissioner Byrd made a motion to open the Public Hearing and was seconded by Commissioner Town Manager Snow Bowden stated we have received complaints about speeding around Erwin Elementary School. Out of concern for the safety of children walking and riding their bikes to school. After some research, the Town Board has the authority to establish a School Safety Zone on a' Town  Nelson. The Board voted unanimously.    TOWN OF ERWIN Mayor  Randy L.J Baker Mayor Pro' Tem Ricky W. Blackmon Commissioners AlvesterI L. McKoy Timothy D. Marbell Charles L. Byrd David L. Nelson William R. Turnage  P.O. Box 459. Erwin, NC: 28339 Ph: 910-897-5140-Fax:910-897-5543 www.erwin-nc.org 1/4/2023 ZT-2023-006 Memorandum  Rezoning Description  The Town ofErwin has received ai request to rezone aj piece of property located at 261 Suggs Road Dunn, NC. Said parcel is currently zoned under Industrial and the request is to move it toi its neighboring land use type of being under the Rural District. The owner oft the parcel who is Eldridge and Franklin Investments of Clayton North Carolina has intentions to sell said parcel for the development ofa single family home. The Harnett County Tax Pin for the parcel is 1507-  28-9258.000. Property Description  The overall size oft the property is 1.9 acres totaling approximately 53,500 Sq Feet with the closet accessible road being Suggs Road off ofl Red Hill Church Road. Its current zoning classification is M-1 Industrial but has been used for single family homes previously. According to. Harnett County GIS the parcel is approximately .6ofai mile away from Erwin's corporate limits and is ini the municipalities planning, jurisdiction. According to GIS said parcel is not  within a flood zone, wetland, or watershed location.  Findings of] Fact  Eldridge and Franklin Investments of Clayton NC put in a request toi rezone 621 Suggs Road from Industrial to be aj part ofthel Rural District to construct. a single family home on said parcel on. November 13th,2023.1 Neighboring land uses are Industrial to the West and Southwest. With the Rural District being on the South, East, North, and Northeast oft the parcel. After visiting the site it seems to have once been a single family home that was demolished.  Regards, Dylan Eure Town Planner    FMacta-0o/02)  Revised 9-19-2014    Application for an', ofErwin, NC O,  Amendment To The Onticial ZofiMap  Staff Only: Zoning Case # Z-2023- 00G < Fee: 8300 Check#QLEZL_MO MA PBI Recommendation: A BOCI Date: 4/4lpecision: A D T A/W Conditions  GNA  D. A/W Conditions  Print Applicant Name: Elrdge g freiin Bnustments Name ofLegal Property Owner Eidcidgs gFtlin Tvesinenfs Please Circle One of thel Following: Less than one Acre One to 4.99 Acres Five or more Acres  Location ofl Property  a61 Supss 14  DUAA NC  Zoning change requested from Talustrinc IfConditional District, note conditions: Harnett County Tax Map PIN L521:21-4255 Property owner(s) ofarea requested and address(es) bonHey T Take  to_ Belerfel (0D)  4065 Pouhaba BA dayby.we,a2530  (Ifr more spacei is required, please attach to this document separately)  Submit names and addresses ofproperty owners immediately adjacent to thej proposed rezoning area (and properties within 100: feet ofp proposed rezoning area) and across any Attach ai metes and bounds description, deed drawing of the area involved or ai reference to lots in an approved subdivision on the entire property requested for change This application: must be filed with the Town Hall by 4:00 p.m. on the Friday which is at least 25 days before the meeting at which it is to be considered and may be withdrawn without penalty no later than 19 days prior to thej public hearing Whenever an application requesting an amendment has been acted on and denied by the' Town Board, such application, or one substantially similar shall not be reconsidered sooner than one Itis understood by the undersigned that the Zoning Map, as originally adopted and as subsequently amended, is presumed by the Town to be appropriate to the property involved and that the burden of proof for a zoning amendment rests with the applicant. Applicant is Encouraged tol Discuss the Proposed Zoning Amendment with. Affected Property Owners.  street(s) andi identify on an area map  year after the previous denial.  1G Signature of Applicant  719-362- 68a8- Contact Number  Yoks Pouhet Rx Claybr NL 27500  Mailing Address of Applicant    REZONING MAP REQUEST STAFF REPORT Case: ZT-2023-006 Dylan Eure, Town Planner eure@erwin-nc.org  Phone: (910): 591-4201 Fax: (910)897-5543  Planning Board: 12/18/2023  Town Commissioners: 01/04/2024  Requested zoning map amendment for a single parcel zoned under Industrial (M-1) to Erwin's Rural  District (RD) for the purpose ofbuilding a single family dwelling.  Applicant Information Owner of] Record: Name: Address: 4065 Powhatan Rd City/State/Zip: Applicant: Name: Address: 4065 Powhatan Rd City/State/Zip:  Eldridge and Franklin Investments Clayton, NC 27520  Eldridge and Franklin Investments Clayton, NC 27520  Property Description  261 Suggs Road Dunn, NC: 28334 (HC Tax Pin #1507-28-9258)  Vicinity Map  See Attached Harnett County GIS Image with zoning districts See Attached Harnett County GIS Image without zoning districts  Physical Characteristics  Site Description: A single vacant parcel totaling 1.90 acres which had previously been a single family dwelling that has since been demolished located on Suggs Road. According to Harnett County GIS no water or sewer lines are accessible through the property. Septic system and well may already bei installed on the property, however, there are no former site plans available    through GIS. Said parcel is not within municipal boundaries but is within Erwin's! planning Surrounding Land Uses: The surrounding land uses are Industrial (M-1) to the West and South  jurisdiction.  West with the Rural District to the South, East and North of the property.  Services Available  Duke Energy for electric installed by former owners.  No water or sewer lines run by the home, home will require well and septic ifi not already  Staff Evaluation Rural District (RD). Staff] Evaluation community  The applicant has requested to have a single parcel rezoned from Industrial (M-1)tol Erwin's  XYes No The IMPACT to the adjacent property owners and the surrounding community is reasonable, and the benefits oft the rezoning outweigh any potential inconvenience or harm to the  Reasoning: A single family dwelling used to be on the property and is surrounded by an  existing neighborhood.  XYes No The requested zoning district is COMPATIBLE with the existing Land Use  Classification.  Reasoning: According to Erwin's current Land' Use Plan done in 2023 the property is assigned to be labeled Industrial. However, all other parcels in use in the area are: zoned  for residential uses.  XYes No The proposal does ENHANCE or maintain the public health, safety, and general  welfare.  Reasoning: The proposed zoning change would allow for the parcel toj provide additional  housing for the municipality.  XYes No The request is for a SMALL SCALE: REZONING and should be evaluated for  reasonableness.  Reasoning: This rezoning request includes a single parcel that was occupied by a single  family home before demolition.    There is a convincing demonstration that all uses Rezoning isi for a single parcel tol be permitted under the proposed district classification considered residential sO a single family would be in the general public interest and not home may be built on the parcel.  merely in the interest of an individual or small  group. YES  There is a convincing demonstration that all uses  permitted under thej proposed district classification The rezoning would only classify a single would be appropriate in the area included in the parcel tol be residential like the other parcels proposed change. (When a new district int the surrounding area.  designation is assigned, any use permitted in the district is allowable, SO long as it meets district requirements, and not merely uses which applicants state theyi intend to make ofthe property  involved.) YES  There is a convincing demonstration that the The area affected is already zoned under RD character of the neighborhood will not be and have single family homes on the lots.  materially and adversely affected by any use permitted in the proposed change. YES  The proposed change is in accord with the Land Even though the parcel is labeled in the 2023 Development Plan and sound planning principles. Land Use Plan to be Industrial all ofthe  YES  surrounding parcels being used are for  Residential uses.  Statement of Consistency  The requested rezoning from M-1 to RD is compatible with all of the Town ofl Erwin's regulatory documents and would not only have a positive impact on the surrounding community but create additional housing for future residents of Erwin. According to Erwin's 2023 Land Use Plan this parcel is directly on the boarder oft the M-1 Industrial District and thel Rural District. It  isr recommended that this rezoning request be Approved.  Attachments:  ZT-2023-006 Application Harnett County GIS Image with zoning districts Harnett County GIS Image without zoning districts Adjacent property owner sheet    Public notice letter sent to adjacent property owners  0) PARD 20 ar  150 33 5  BD 70 180 805 010 8  51 S 90 200 m2 70 z a S0 20 89 159 949 JB)  &D Erwo   7D 9 609 4D 463 P 1  79 39 02 7E3 70  63 G77    Edward" Turlington POI Box 1027 Dunn, NC: 28335 Harnett County POI Box 759 Lillington, NC27546 Duran Hugo Munguila 114 Clayton Rd Angier, NC27501 Mary Lockamy 149 Suggs Rd Dunn, NC 28334  James Anthony Peterkin PO Box 826 Coats, NC: 27521  Christine Annie Wiggins & Billy Alston Simon  306 Suggs Rd Dunn, NC 28334    TOWN OF ERWIN P.O.Box 459. Erwin, NC28339 Ph: 910-897-5140-Fax: 910-897-5543 www.erwin-nc.org 12/19/2023 ZT-2023-006  Mayor Randy L. Baker Mayor Pro Tem Ricky W. Blackmon Commissioners Alvester L: McKoy Timothy D. Marbell Charles L. Byrd David L. Nelson William R, Turnage  Notice ofa Public Hearing  The Board of Commissioners oft the' Town ofl Erwin will hold aj public hearing pursuant to NÇ General Statute 160D-406 on January 4th, 2024 at 7:00P.M. at the Erwin' Town Hall, 100 West F Street, Erwin, North Carolina tol hear public comment on aj proposed rezoning There has been a zoning map amendment application submitted to the Town. The rezoning request includes a single parcel ofland that are listed below: 261 Suggs Road Dunn, NC 28334 (HC Tax Pin: 1507-28-9258)  request.  The applicant has requested to have the parcel listed above rezoned from Industrial (M-1) to thel Rural District (R-D). The applicant would like tol build a single family home which A copy oft this casei is available fori review at thel Erwin Town Hall. Questions concerning this case can be addressed to the Town Planner Dylan Eure at 910-591-4201 or by email  are permitted within the' Town's Industrial District.  at deure/erwiD-nC.OrE  Regards, Town  456        atementokcomisten?  The requested rezoning to RD is compatible with allo oft the Town of Erwin's regulatory documents and would not only have a positive impact ont thes surrounding community, but would enhance the public health, safety, and generalwelfare: as statedi int the evaluation. It is recommended that this rezoning  request be Approved.  -  Joshua! Schmieding Planning Board Vice-Chairperson  Euoo  Lauren Evans obn Town Clerk  11    atement-orconisteney  The requested rezoning tol RD is compatible with all oft the Town of Erwin's regulatory documents and would not only have a positive impact on the surrounding community, but would enhance the public health, safety, and general welfare as stated int the evaluation. It is recommended that this rezoning  request be Approved.  Pp6  Randy Baker Mayor  Chuen Euan  Lauren Evans Town Clerk    TOWN OF ERWIN P.O. Box 459. Erwin, NC: 28339 Ph:910-897-5140- Fax: 910-897-5543 www.erwin-nc.org  Mayor Randy L. Baker Mayor. Pro' Tem Ricky W. Blackmon Commissioners Alvester L. McKoy David) L. Nelson William R. Turnage  ORDINANCE FORI MAP. AMENDMENT CASE: # ZT-2023-006 Timothy D. Marbell AMENDMENT TOTHE OFFICIAL ZONING MAPTOI REZONE Charles L. Byrd  FROM INDUSTRIAL (M-1)7 TO RURAL DISTRICT (RD) PER. ZONING ORDINANCE, ARTICLE XXIII FOR: HARNETT COUNTY PIN 1507-28-9258.000  ORD: 2023-2024: 004  Per Chapter 36 Zoning, Article XXIII, Changes and Amendments, Harnett County PIN 1507-28-9258.000 owned by Eldridge and Franklin Investments LLC has been rezoned to  Rural District (RD), Case # ZT-2023-006.  Matthew S. Willis Register of Deeds Harnett County, NC Electronically Recorded 06/30/2023 02:23:57 PM Book: 4198 Page: 1984- 1985 (2)F Fee: $26.00 Instrument Number: 2023010739  061507 0634 COUNTY TAX ID # 06-30-2023 BY: TC  NC Rev Stamp: $0.00  NORTH CAROLINA GENERAL WARRANTY DEED  Excise Tax: $0.00 Mail To: SL Cox Law PC2 201) Bellaris St Garner NC27529 Thisi instrument was prepared by: S.L. Cox Law PC Brief description fort thel Index THIS DEEDI made this 30" day of May 2023, bys and between 201 Bellaris St. Acquisktions, LLC Gamer, NC27529 Propertyi is. isnor x primary rosidenoe of the grantor. The designation Grantor and  Parcel Number 0615070634  261 Suggs Rd.  GRANTOR  GRANTEE  Eldridge 7007 Scarlett and Ln Franklin Investments, LLC Garner, NC27529 Property Conveyed: 261 Suggs Rd. Dunn, NC2 28345  as used hereins shalli includes saidy partics, their heirs,  and assigns, and shall  include singular, plural, masculine, feminine or neuter as requirod by contoxt,  that the Grantor, fora a valuable consideration paid by the Grantec, ther roceipt of whichi is hereby acknowledged, has and by these presents does grant, bargain, sell and convey unto the Grantoe in foes simple, all that certain lot or paroel of land situated in, City Dunn, Harnett County, North Carolina and more particularly: described asf follows: BEGINNING at a point in State) Road #1727, which poiat of beginning is located in the center of thet tracksof thel Durham Southern! Railroad line South 44 deg- 42 min. West 26.61 feetf from anl iron stake ln the center of said railroad track and runs thence with the center line of said railroad track South 44 deg. 42 min. West 599.4 feet; thence North 18 deg. 571 min. East 653.51 feet to a point in the aforesaid State Road; thence with aforesaid: State Road South 47 deg.: 28 min. East tot thel BEGINNING, Containing 1.9 acres, more or less, and  being part ofthel lands The property ind the  in deed recorded in Book 367, Page 640, Harnett County Registry.  described was acquired by Grantors see Book 4036, Page! 98  Submitted. lect croni North by SL Law PC"  BAY Ere ARr necerdat tt County gister of Deeds.    BK4198 PG 1985  DOC# 2023010739  che aforcsaidk loto orF parcelo ofland. anda allprivileges anda appurtenanoest theretob belongingot tbe Granteein  fesimple Generale easements ofr record. Restrictive covenants of record. Ad taxes -ew due and payable.  Andt the Grantor covenants with the Grantee, that Grantori iss seizedo oftbey premisesi in fees simple, hast the right tos conveyt same in simple, thatt titlei is marketable and free and clear ofalle encumbrances, andt that Grantor will warrant andd defend the thet title againstt thel lawfulc claims ofally persons whomsoever, othert thant thef following exceptions:  INV WIINESS WHEREOF, the Grantor has dulye executedt the foregoingas ofthed day andy year first aboves written  Cox, as Manager for STATEOF NC COUNTY oF.Dahaskyo. Lhaw LRa  Acquisitions, LLC (SEAL)  Notary Public ofsmid County and state, dob hereby certifyt that Samanths  Cor,s Manager for Grindatome Acqulsitions, LLC andy personally appoared beforer met thisd day, and being bys mec duly  swom, says thath he ors shee executedt thef foregoing. anda annexedi instrument. WITNESS my hand and notarial sealc on this, 3o1 day of Sk, 2023.  alRan NOAR PUBLIC HOLLYL RAU NOTARYI  My Commission Expires: 1-25-2020  Adopted this the 4th day ofJanuary 2024.  Mayor  ES6  ATTEST:  Chuen Euane  Lauren Evans, NCCMC Town Clerk    8905  MINUTES CONTINUED FROM JANUARY 4,2024 School Safety Zone would be a step int the right direction.  maintained street by the adoption of an Ordinance. Signs would be posted on East D: Street and South 10th Street, parallel to the school zone signs on Denim Drive. We are looking at funds for sidewalks but this  Mayor Baker asked if anyone was present to speak in favor of the request. Mayor Baker asked if anyone was present to speak against the request.  No one came: forward. No one came: forward.  Commissioner McKoy made ai motion to close thel Public Hearing and was seconded by Commissioner Mayor Baker stated the School Safety Zone Ordinance was much needed. He asked ifTown Staff planned Town Manager Snow Bowden stated that signs are. required by the Ordinance but painting the roads  Byrd. The Board voted unanimously.  toj paint the road. would not hurt.  Commissioner Byrd stated it was well overdue. McKoy. The Board voted unanimously.  Commissioner Byrd made a motion to approve the Ordinance Establishing a School Safety Zone on East D Street and South 10th Street Pursuant to N.C.G.S. 20-141.1 and was seconded by Commissioner Town Manager Snow Bowden stated that he planned to discuss the speeding issue and placing new  signage of25 MPH on all roads at our Budget Workshop.  PUBLIC COMMENT No one was present to speak. MANAGER'S REPORT  Town Manager Snow Bowden informed the Board:  Atour) January workshop meeting we willl have al lot to discuss: 480k grant for park expansion and related equipment.  500K stormwater management plan grant- this should help us with aj plan for stormwater throughout the Town. This was one oft thel biggest complaints that we. have gotten. We were waiting on a letter from the State sO we could put out an RFQ to hire a firm to help  us with this plan.  500k grant for economic development.  Discussion of! hiring an engineer to assist with the water line installation on St. Matthew's We should be discussing an updated MOU: from Harnett County regarding our SRO  Road with the grant we received from the State ofNC.  program.    Erwin Board of Commissioners  REQUEST FOR CONSIDERATION  To: The Honorable Mayor and Board of Commissioners  From: Snow Bowden, Town Manager Date: January 4, 2024 Subject: School Zone Ordinance  Pursuant to N.C.G.S. 20-141.1 thel local authority (in this case the Erwin' Town Board) has the authority to adopt an ordinance toi regulate the speed limit in a school zone during an established timei that would be advertised by regulatory signs ini the established area. Wel have received numerous complaints about speeding around Erwin Elementary and wel have some safety concerns that we hope this will address. There are ai number of children that walk to school and Erwin Elementary is also al larger school now with it being al K-5 school. Before they demolished the old school on this site Erwin! Elementary was a 3-5 (grade school). Gentry was the primary school for this district (K-2). The proposed ordinance establishes as school zone on East D Street and South 10th Street during the same time period as the already  established school zone on Denim Drive.  *Town Staff and the Erwin Police Department are well aware of the speeding complaints throughout the Town of] Erwin. Wej plan on bringing up the possibility of changing the speed limits throughout the' Town of Erwin but that will require substantial funding due to the need for additional signage. Town Staff hoped tol have this discussion once we start planning for the budget fort the next Fiscal Year. The process to change the speed limit on our town-maintained streets involves approving ai text amendment to our Town Code, which requires presentation to the Planning Board for their recommendation, then we havea public hearing for any input from the public, and ift thei majority of the members of the' Town Board vote to approve the text amendment to our Town Code we will need toi install thei new: signs showing the speed  limit.  Attachments:  Proposed ordinance    TOWN OF ERWIN P.O. Box 459. Erwin, NC28339 Ph: 910-897-5140 Fax: 910-897-5543 www.erwin-nc,org  Mayor Randy L. Baker Mayor Pro Tem Ricky W. Blackmon Commissioners Alvester) L. McKoy Charles L. Byrd DavidL. Nelson William R. Turnage  AN ORDINANCE ESTABLISHING A SCHOOL SAFETY ZONE Timothy D. Marbell  ON EAST D STREET AND SOUTH 10TH STREET PURSUANT' TO N.C.G.S. 20-141.1 ORD2023-2024: 005  WHEREAS, the Town of] Erwin Mayor and Board of Commissioners realize that the WHEREAS, the Town of Erwin Mayor and Board of Commissioners are extremely appreciative oft thel Harnett County School System and Harnett County for funding such a WHEREAS, the Town of Erwin Mayor and Board of Commissioners realize that we WHEREAS, the Town of Erwin wishes to establish a School Safety zone on our town- maintained streets including East D Street and South 10th Street from the following hours WHEREAS, the Erwin Mayor and Board of Commissioners have the authority pursuant tol N.C.G.S 20-141.1 to establish a school safety zone on our town-maintained streets. WHEREAS, the proposed school safety zone willl bei identified by the proper signage indicating the authorized lower speed limit and the times and days that it is inj place. WHEREAS, the authorized speed limit in the school zone shall be 25 miles per hour. NOW,THEREFORE BE IT ORDAINED by the Board of Commissioners oft the Town ofErwin, North Carolina that a school zone is established on East D Street and South 10th  safety ofour children is a top priority of our residents;  great facility in thel heart oft the' Town ofl Erwin;  have more kids walking to the new. Erwin Elementary School  7:30 until 8:30 AM and 2:30 until 3:30 PM.  Street.  Duly Adopted, this the 4th day of. January 2024.  ATTEST: hus Lauren Evans, NCCMC Town Clerk    Euans  Randy,Baker Mayor    TOWN OF ERWIN BOARD OF COMMISSIONERS REGULAR MEETING THURSDAY,JANUARY 4, 2024, AT71 PM  PUBLIC COMMENT- Each speaker is asked to limit comments to. 3 minutes, and the requested total comment period willl be 15 minutes or less. Citizens should sign upi prior to the start ofthe meeting. Please provide the clerk with copies ofany handouts you havej for the Board. Although the Board is interested: in hearing. your concerns, speakers should note expect Board action or deliberation on subject matter brought up during the Public Comment segment. Thank you) for your consideration of the  Town. Board, staffand other speakers. $160A-81.1  Name  Address  Subject  CT OHN  2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.    8906  MINUTES CONTINUED FROM JANUARY 4, 2024  He thanked Mark Walton and Lynn Lambert with thel Harnett County Soil and Water Division. Mark helped us apply for aj planning grant that should help with the CCAP grant that we were He planned to pass out budget forms to all of our department heads the following Monday for them to submit with their budget request by mid-February for the upcoming Fiscal Year. Our COG Mid-Carolina reached out to him right before Christmas and set up a meeting with the NCI League of Municipalities. We should be getting another grant to help with engineering services. He suggested using those funds for an ADA transition plan. The grant should be around  expecting to receive for the Porter Park Stream restoration project.  $50,000.00.  We were working on getting quotes for the Community Building work. Corridor overlay district to go in line with our updated Land Use Plan. us to. join this organization and leave the Mid-Carolina RPO. He would let the Board know more information as soon as he knew it.  We were going to get back to work on getting quotes to update our Town Code and a HWY421 He was still waiting to hear back from FAMPO about ai meeting to discuss aj potential MOU: for Early voting for the 2024 election will bet taking place at the Al Woodall Park gym again this year. We were still working on West K Street. Public Works recently put up a better barricade to Ample Storage had submitted plans to Harnett County to tear down the old White House Restaurant. Hel knew it was long overdue, but he was. hopeful to have that site cleaned up soon.  hopefully keep people out.  ATTORNEY'S REPORT  Town Attorney Tim Morris thanked the Board for allowing him to be their Town. Attorney.  GOVERNING COMMENTS  Commissioner McKoy wished everyone a Happy New Year. Commissioner Marbell wished everyone a Happy New Year. Police Chiefand was amazed by all of our Town Staff. Staff. He wished everyone al Happy New Year.  Commissioner Byrd thanked citizens for taking the time to be at our meetings. The recognition given out was sO well deserved. Hei thanked Finance Director Linda Williams for all that she does. He thanked our Commissioner Nelson stated he was proud oft the citizens ofErwin, the Fire Department, Police Department for the wonderful job done with Shop with al First Responder. He was thankful for Town Commissioner Turnage stated hel had South Erwin on his mind and we needed to do something about the Getting Place. Asi far as the grass, it looked the best it ever looked. He was looking for a good year for Mayor Baker echoed the comments ofhis fellow Board Members. He thanked Commissioner McKoy for the invocation he gave at the beginning oft the meeting. He really took it to heart. He wished everyone a  Erwin and wanted to make people proud of our Town.    MINUTES CONTINUED FROM JANUARY 4.2024  Happy, Healthy, and Safe New Year. He was looking forward to good things and as Commissioner McKoy prayed, we arei in God's will. We have outstanding staff. He congratulated Finance Director Linda Williams for her award of] Employee oft the Quarter and Lieutenant. Joey Ennis for his award as Citizen of the Month. Giving those awards was the highlight of what he did as Mayor, to give recognition to our  Staff and our Citizens and he was thankful for that honor.  ADJOURNMENT Thel Board voted unanimously.  Commissioner Byrd made a motion to adjourn at 8:02 P.M. and was seconded by Commissioner Turnage.  MINUTES RECORDED. ANDTYPED! BY LAUREN EVANSTOWN CLERK  ATTEST:  F6  chunfan Lauren Evans, NCCMC Town Clerk  Randy Bakér Mayor