APRIL 27, 2022 (RECESSED MEETING AND FIRST BUDGET WORKSHOP) Minutes of the recessed meeting and first budget workshop of the Mayor and Board of Commissioners of the Town of Elkin, April 27, 2022, noon at the Heritage Present: Mayor Sam Bishop, Commissioners Cicely McCulloch, Robert Ball, Jeff Also present: Town Manager Brent Cornelison, Assistant Town Manager and Director of Recreation and Parks Adam McComb, Finance Director Dina Reavis, Public Works Director Travis Butcher, Police Chief Monroe Wagoner, Fire Chief Kevin Wilson, Economic DevelopmentPaning Director Leslie Schlender, Police  Center.  Eidson, Will Gwyn and Tommy Wheeler.  Captain Josh Tulbert and Town Clerk Cathie Tilley.  1. Call to Order (Mayor Bishop)  Welcomed everyone and reconvened the recessed meeting. Turned the meeting over to Town Manager Cornelison who gave a brief  introduction of what we would see and hear.  2. Summary of Proposed 2022-23 General Fund and Water Fund  Water Fund:  Revenues - $1,488,449 Expenditures $1,611,284 Revenues - $5,888,576 Expenditures - $6,445,830 ARP Funds - $1,278,295 Balance - $721,042  Revenue (Shortfall) Overage - ($122,835)  General Fund:  Revenue (Shortfall) Overage - ($557,254)  Tax Rate Necessary to Have Zero Balanced Budget: Projected tax base (net) incl. motor vehicles - $517,880,748 Every one cent in tax rate equals - $51,788 Increase (decrease) in tax rate to balance budget - $0.108 ARP is frowning on any increases in water or taxes when ARP funds can go back into the General Fund.  Comments from Town Manager: requesting ARP funding.  3. Capital Requests  Priorities determined by Board: Economic Development  Heritage Art Center - It Starts with a River. - $35,000  Pave trail at HC -$17,000 Ext. info pods at HC trail $12,000 E. Main St. alley parking - $78,850  Streets and Highways Recreation and Parks    Parking lot repave tennis/Dasebal) #3-$43,000 Parking lot repave tennispoolplayground)#2-$5,000  Parking lot curb - $85,000 Parking lot stripe-$ $18,000 Crater Park pickleball courts - Funded Tennis court crack repair and paint- - $27,000 Pool re-plaster - $145,000 Parking at Dog Park-F Funded  Other items included: Finance Police Department  Phase II server upgrade software - $14,550  Portable radios - $6,888 Mobile in-car radios -$ $12,321  Mobile in-car data terminals (computers) - $9,000 MP5's, mounts, sights (submachine guns)-$3,000 Emergency lights and equipment- -S $5,000 Portable radio - $16,000 Wireless headsets $5,000 SCBA bottles - $12,800 Turnout gear - ballistic vest-$ $10,000 Brush chipper - $55,000 (will save town money) Lawn mower (half) - $6,000 Leaf truck chassis - $50,000 Lawn mower (half) - $6,000 Snow plow and spreader - $25,000 Park utility vehicle (Gator)- -$14,000 Park maintenance mowing equipment - $15,000 These two items will be used by more than one  Fire Department  Streets and Highways  Powell Bill  Recreation and Parks  department.  Airport  Matching capital projects for grants - $16,667 This is our yearly match. High service pump replacement-$75,000 Valve actuator replacement - $90,000 Backwash pump and controls $85,000  Water and Sewer  Will not get the Water Plant totally up to speed, but Reminded Board that the town will be receiving additional reimbursement funds from the Sewer  will be much better. Authority,  Health Insurance:  Budgeted 10% increase  Page 2 of 6    Actual increase is 6%  Crater Park Upfit:  Atour retreat, Adam (McComb) talked about:  Possible funding from a 50-50 match PARTF Grant and/or paying for a conceptual drawing (cost-$32,000). Spray Pad (1,000 sq. ft; cost $136,000; no filtration). There is funding through the NC Parks and Recreation Trust  Fund (Accessibility for Parks Grant) Grant amount will be $328,818.  Budget amendment - $14,000 from Fund Balance. this grant for a new Splash Park.  Will cover costs for preparation and application for  Ifthe Board is interested in using COVID funds to do this, staff can bring a Budget Amendment to the May BOC meeting. Following discussion, staff was instructed to bring a budget amendment to our next meeting for this project. Reminded the Board that these requests were now included in  Special Appropriations:  the town's line-items as follows: Fire Department: Rescue Squad- -$ $5,000 Recreation Department:  Elkin Valley Trails Association- - $0.00 Foothills Arts Council - $9,000  Foothills Arts Council - Foothills Theater - $5,000 Explore Elkin Fireworks - $10,000 (added as a line-  item last year)  The above amounts will be budgeted each year for these Iffunding above these amounts is requested, a representative from that group will have to present their request before the Board of Commissioners for  organizations.  consideration.  4. General Fund FY 2021 Expenditures  Governing Body - $52,307 Administration $224,952 Finance - $343,960 Legal - $23,847 Planning and Zoning - $135,990 Main Street - $94,934 Economic Development - $220,024 Public Buildings $78,650 Police - $1,729,159 Fire Department- $629,603 Garage - $77,851 Streets - $626,915 Powell Bill - $126,000  Page 3 of 6    Sanitation - $301,513 Recreation - $1,214,093 Elkin Public Library $83,500 Cemetery $27,320 Airport - $251,767 Debt Service - $0.00 W&S Contribution- $0.00 Non-departmental-: $203,445 TOTAL-$6,445,830 Debt-Service - $195,472 Non-Departmental $86,410 Admin and Billing -S $88,616 Water Department- - $1,240,786 Provision for Net Asset - $0.00 Total- - $1,611,284  5. Water Fund FY 2021 Expenditures  6. General Fund FY 2021 Revenue Sources  Current Year Property Taxes (Incl. MV)-$2,828,147 Prior Year Property Taxes and Penalties $1,500 General Fund Interest on Investments - $3,500 Garbage and Recycling Fees - $334,000 Recreation Revenue - $218,750 ABC Revenue - $109,000 ntergovernmental Revenue - $20,600 Utility and Cable Franchise - $392,500 General Fund Other Revenues  $400,579 Powell Bill Revenue - $130,000 Sales Tax Revenue - $1,450,000 Appropriated Fund Balance - $0.00 Total- - $5,888,576  7. Water Fund FY 2021 Revenue Sources  Water Charges -$1,324,074 Connection Fees -S $5,000 Water Fund Interest on Investments-$3,000 Sales Tax Refund - $17,000 Water Fund Other Revenue $52,700 YVSA Sewer Debt Remburement-s86675 Total - $1,488,449  8. Property Tax  Current 2022 Tax Base (not including MV)-$ $476,441,460 Projected 2023 Tax Base (not including MV) - 485,794,433 Growth (decrease) in Tax Base - $9,352,973 (2% growth) Current 2022 Tax Revenue (including MV) -$2,701,889 Projected 2023 Tax Revenue (including MV)-$ $2,828,147 Increase (decrease) in Tax Revenue $126,258 (4.7% increase)  Page 40 of 6    9. Governing Body Salaries  Mayor and commissioners receive an increase each year.  Current annual salaries: Mayor - $5,022 Commissoners-s2961 Total-$ $19,827 Projected FY 2022 salaries w/5% COLA Mayor - $5,273 Commissioner- $3,109 Total - $20,818 Town Attorney annual salary $16,231  Projected FY 2022 salary w/5% COLA-$17,043  10. Summary  Board priorities total - $515,850 Health Insurance - 6% increase Increase User Garbage Fees  COLA/Merit - 5% COLA; 2% Merit (overall 6.6% increase) Waste Management Contract - 33% increase ($282,520.00)  Residential - increase $1 from $8 to $9 Commercial - increase $2 from $8 to $10 increase for tank maintenance ($442,000.00) Appropriate GF Fund Balance - $557,254.00 Appropriate WF Fund Balance - $122,835.00 Transfer from ARP GPF to GF in FY22-$ $639,147.73  Water Plant Op & Maintenance Contract - 6% increase for 0&M, 5%  No water rate increase No tax rate increase  11. Discussion  Town Manager Cornelison told the Board they had seen a quick summary of the proposed budget. Asked for questions or discussion.  The following topics were discussed: Staffing Situation: employees. Water Tap Fees:  Stated that luckily, we do not have much turnover with our  Most taps are new businesses.  Whether commercial or residential, the costs are the The only newly proposed fees are the ones mentioned There was much discussion about flat fees.  same.  earlier in the presentation.  Water Cut-offs:  Have a problem with residents who go out of town for six months of the year and want their water cut off for that  Page 5of 6    amount of time because they do not want to pay for water Much discussion ensued regarding charges for disconnecting and reconnecting water. Gave the water leak at the school as an example. The leak is on their side oft the meter. Will be several weeks before they can get someone too come out to do repairs. We could go out there and fix it in special circumstances and charge for our work. We can help sometimes in certain situations.  when they are not using any.  Special Situations:  12. Timeline:  May - Budget Message June - Public Hearing June - Adopt Budget Ordinance End of June = Final Budget Amendments  12. Updates:  Electronic Gaming Situation  Will hear from the Planning Board on this at our May meeting  Mayor Bishop thanked staff for all they do.  There being no further business, a motion by Commissioner Gwyn to adjourn was seconded by Commissioner McCulloch and was unanimously approved. The  meeting adjourned at approximately 12:45 p.m.  Sam  L Bishop, Mayor  Attest:  Cahii Q.Joi Catherine C. Tilley, Town Clérk  Page 6 of 6