MAY7, 2019 (RECESSED MEETING AND BUDGET WORKSHOP)  Minutes of the recessed meeting and budget workshop of the Mayor and Board of Commissioners of the Town of Elkin, May 7, 2019, 3:00 p.m. at Town Hall. Present: Mayor Sam Bishop, Commissioners Cicely McCulloch, Robert Ball, Jeff Also present: Town Manager Brent Cornelison, Assistant Town Manager and Recreation and Parks Director Adam McComb, and Town Clerk Cathie Tilley, Police Chief Monroe Wagoner, Interim Fire Chief Kevin Wilson, Economic DevelopmenuPanning Director Leslie Schlender, Public Works Director Robert Fuller, Finance Director John Holcomb and Lori Dexter. (Not attending: Town Mayor Bishop reconvened the recessed meeting and made the following  Eidson, Will Gwyn and Tommy Wheeler.  Attorney Raymond Parker)  comments:  Thanked Police Chief Wagoner and Interim Fire Chief Wilson for Brent met with DOT and they have agreed to install signs on Elk Spur Street and are looking at lowering the speed limit on CC Camp Road. Met with local officials regarding the School Board issue (school board Everyone appreciates our leadership role in that matter.  everything they did during the past month.  elections becoming partisan).  Other towns followed our lead. All three schools agree with us. Others are continuing to oppose this issue. We hope it does not happen.  People are saying that whatever we are doing in Elkin, we are doing it  right.  Believes the key is listening to our staff.  Department heads discuss matters with Brent. Everyone sticks together when coming to the Board. Other towns do not do this; they are pulling in different  directions. We have a strong staff.  Mayor Bishop turned the meeting over to Town Manager Cornelison who  presented the following:  lhave one item before moving onto the budget.  Robert (Fuller) got back final bills, and we have money in the Powell Bill Fund to pave and curb and gutter sidewalk around town Would like to do it now before DOT starts paving North Bridge  hall parking lot ($43,000.00). We need to make a quick decision. This is the best time to do this work.  Street.    Commissioner Wheeler made a motion to doi the abovementioned work going from the parking lot driveway on North Bridge Street to the other parking lot driveway on Market Street. Following discussion, Commissioner McCulloch seconded the motion. The Moving onto the budget, Manager Cornelison thanked the department Referenced Project Sheet from Retreat and discussed the top five Using Powell Bill money to complete Standard Street Finish exterior parking areas at Heritage Center Contracting downtown area maintenance Tried not to use Fund Balance. Insurance for employees increased 24%. This seems to be normal. Looked at other companies. Considered going with a different policy. Did not want to penalize our employees. Rate increase from Waste Management.  motion was unanimously approved. heads for keeping their budgets realistic. projects as scored by the Board: Generator for water plant  Increase pay at. .25% for 2 years for years of service and 2% COLA Discussed revenues and expenditures for the General Fund and the  Water Fund.  Funds included for:  Some special events Some capital items  Special appropriations as directed during retreat  Reminded everyone that fireworks were moved to Adam's budget, and appropriation for Surry EDP was  moved to Leslie's budget  ABC Board will write a check to Elkin and Jonesville for $75,000. Elkin will keep 75% of these funds ($56,250) These funds can be used for several things. Following discussion, there was consensus among the Board for staff to come up with recommendations for Board Will do a budget amendment when the time comes.  consideration.  WATER FUND:  Revenues  $1,569,476 Expenditures- -$1,476,657  Revenue Overage - $92,819  Includes YVSA debt reimbursement and $50,000 contribution to Water Fund Capital Reserve Fund  GENERAL FUND:  Revenues - $5,282,194 Expenditures - $5,263,740  Revenue Overage - $18,454  Page 2 of 6    Includes $5,000 contribution to Recreation Capital  Reserve Fund  Increase (decrease) tax rate necessary to have zero balanced Projected tax base (net) = incl. motor vehicles - Every 1 cent in tax rate equals - $49,274  budget in General Fund $492,743,521  Increase (decrease) in tax rate necessary to balance  budget - ($0.004)  Next year will be the last year of the PGWincentive. We will bei in better shape next year. Not proposing any tax rate increase or water rate increase. The long and short of our operating budget is that we have the top five priorities as requested by the Board in the budget and will have some  money back in Fund Balance. We remain conservative with our revenues. Mr. Holcomb presented the following: Capital Reserve Funds:  Recreation Capital Reserve Fund Contributing $5,000 this year Total - $30,000 Economic Development Capital Reserve Fund No contribution this year Total - $100,000 Water Fund Capital Reserve Fund Contributing $50,000 this year Total - $200,000  General Fund FY 2020 Revenue Sources:  Taxes:  Still receiving updated scroll information. Decrease in tax base is probably normal depreciation Discussed five programs the town finances:  Day Camp Pool Operations Garbage Leaf and Limb Recycling Talked about some debt:  No proposed increase in these fees  Fire engine and ladder truck YVSA (much discussion) Raw Water Project Outside agencies that are funded  Waiting for updated figures from Surry County for PGW tax  base  Town Manager Cornelison presented the following:  Police Department:  Proposed one new car for the Police Department  Page 3 of 6    This might change  Fire Department: Turn-out gear Door malfunctioned Recreation and Parks: Mowing equipment Tennis equipment Water Plant: Generator Vehicle  Try to fund a little each year Have an estimate to do the repairs  Might have funding from FEMA coming to the park  Couple of vehicles parked under a shed were damaged when the snow storm caused the roof to collapse  We have a lot of equipment needs, but have only included the ones that  are high priority in the proposed budget. About every other year we do a water rate analysis. Did not do one this year. We are not proposing a rate increase this year. Will look at rates next year.  DISCUSSION:  Town Manager Cornelison and Commissioner Eidson:  Discussed the employee pay scales to make sure everyone Happy with where we are both in the General Fund and Water Water Fund is doing well even though we have new debt. Regarding possible funding from FEMA and YVSA:  understands what is happening.  John Holcomb: Fund. Mayor Bishop:  Recommend we put these on hold and let staff come back with recommendations once we know how much funding  actually comes to the town.  Adam McComb:  We may need to have a discussion about the stream bank at  Memorial Park Drive.  Ifwe bring this area back to the standard where it was, it Tomake it where it will not happen again (make it better than before), we might have a 50-50 match. We are meeting Thursday with FEMA. They have been very helpful.  might be funded.  Yadkin Valley Sewer Authority:  Additional discussion about the loan.  Mayor Bishop informed the Board that J. L. Lowe's term is up in  June.  Page 4 of 6    We are going to be looking at putting a town commissioner  on that board to replace Mr. Lowe.  Hospital:  Commissioner Eidson asked what the Board was going to do about the hospital (the town paying for a table at the Wine Auction). Mayor Bishop said we need to support the hospital and wants us to look at other organizations that help us  financially.  Any organization we get financial support from, we  need to support them.  Commissioner Eidson: this function.  l'am not comfortable paying with tax money for me to attend Do not think we should use taxpayer money to go to a party.  We should pay for that ourselves. We pay dues to the Chamber of Commerce. We need to support the hospital.  Mayor Bishop: Manager Cornelison: Commissioner Eidson: ourselves.  We have $1,500 in the proposed budget for this item. lencourage everyone to go, but I think we should pay for Following discussion, this item was removed from the proposed All department heads except Robert Fuller and Kevin Wilson were given  budget.  the opportunity to leave the meeting. RONDA (Town Manager Cornelison):  Ronda has approached Elkin to take over their water system. They want to get out of the water business. Robert and Brent have talked to' W.K. Dickson. There is a grant coming up in September.  Itlooks at everything at no cost to the town. Would give us a better percent chance of getting  grants.  Recommend we do this study. regarding this matter.  At next year's retreat, we will have more detailed information Robert Fuller agrees with this recommendation. They want to give us this with no debt service. toe expand sewer to their landfill. can look at this along with the water study.  Mayor Bishop said he had talked with Eddie Settle, and they want Manager Cornelison said he, John (Holcomb) and Kevin (Wilson)  Bulk Water Rate:  Part of the agreement with Ronda should have been that they would go up on their water rates incrementally.  Page 5 of 6    Their rates would have been more than their citizens Donoti increase until we get analysis back. Make a decision then.  could afford.  Recommend rates be left as they are now.  By doing the water study, we will have better information next year to make a more informed decision regarding taking over their water  system and how much to charge them. All Board members agreed on this.  There being no further business, a motion by Commissioner McCulloch to adjourn was seconded by Commissioner Gwyn and was unanimously approved. The  meeting adjourned at approximately 4:00 p.m.  Mayor  Attest:  Town Clerk  Boiag  Page 6 of 6