Fletcher Town Council Budget Meeting Minutes May 2, 2020  Call the meeting to order at: 08:46 am Those who were in attendance are as follows:  Mayor Rod Whiteside Mayor Pro-Tem Bob Davy Councilwoman Sheila Franklin Councilman Eddie Henderson Councilman Preston Blakely Town Manager Mark Biberdorf Assistant Town Manager Heather Taylor Town Clerk Christine Thompson  The purpose of this meeting is to review the upcoming budget for the 20/21 Fiscal Budget year in which Town Manager Mark Biberdorf will be doing a power point  presentation.  Overview of Proposed FY 2020-2021 Budget  a) The Balanced Budget totaling $7,632,684.00 in revenues and expenses. b) This is an of $37,912.00 increase from the 2019/2020 budget year. c) COVID-19 impacts to economy contribute to lower than anticipated overall d) The proposed tax rate would remain at 34 cents under this recommended e) The remaining 11.5 cents of the tax rate goes to contracted fire protection  revenues. budget. services.  Overall Economic Outlook for FY 2020-2021  a) Still growing but at a slightly slower pace (projected GDP growth of 2%)    e) Gross State product (GSP) for NC projected to be positive in 2020 f) Manufacturing picking up speed and housing steady.  Local Economic Factors  Residential growth still occurring (Sycamore Cottages) -151 unit development entering Phase 2 of construction; former Rutledge Heirs b) Commercla/Imdustral growth continues to be strong-Smartrac expansion, Mainetti building 300,000 sf facility and Hunter. Automotive relocation on c) Retail sales continue on positive trend for the state and locally.  property approved for a 311 unit development.  Hwy 280.  d) And then the Coronavirus hit!!!!  Revenue Outlook  a) Ad Valorem values projected to increase from $1,355,232,000to b) Largest portion ofi increase in values is from real improvements-new, c) Business personal property grew by the second largest amount from the d) Motor vehicle values contributed slightly to projected growth. e) 6% increase (additional $229,756) in real personal property taxes. f) 6% increase (additional $14,657) in Motor Vehicle property taxes. g) 1% increase (additional $2,000) in Powell Bill funding. h) 19% increase (additional $830) in ABC Law Enforcement. i) 4% increase (additional $8,000) in. ABC Distribution j) 6% increase (additional $325) in' Tippling fee tax. k) 18% decrease (drop of $7,000) in Interest on Investments. 1) 1% decrease (drop of $2,600) in Utilities sales tax m) 9% decrease (drop of $144,143) in local sales tax. n) 14% decrease (drop of $15,000) in Recreational Activates. o) 25% decrease (drop of $2,000) in land use permits.  $1,389,191,000. construction. prior year.    Budget Requests  a) Budget requests initially came in $185,000 above prior year revenues. b) Requests included one additional full-time position -Maintenance Worker  in Parks & Recreation.  c) Replacement off all MDT's for all the police department. d) Hardware replacements and safety upgrades with IT e) Equipment replacement within Parks & Recreation. f) Equipment upgrade within Public' Works  g) Continued contracting for Phase II storm water compliance measures h) Expense requests funded within current tax rate of 34 cents. i) Reductions or additions in some line item requests were made at the Initiallyl looking at a 32.4% increase in health insurance premiums (Blue k) Reduced the renewal to quote to 14.6% by making adjustments to the plan (deductibles increase and coinsurance and copayments provision added) ) Continue health reimbursement account (HRA) contributions at slightly m) Costs for stream monitoring behind Town Hall ending ($4,500) o) Decrease in incentives budgeted for economic development (over $90k) p) Noincrease in tonnage fees budgeted for municipal solid waste.  Mangerarecommenditon Cross/Blue shield)  higher amount of single coverage. n) Reductions in contract services at Town Hall  Mayor Whiteside commented on the HRA "Vested Health" accounts and the amount that the town puts in these accounts for employees should be the same amount across the board whether the insured is an individual employee or has a family plan since the town already pays half the premium on a family plan.  Governing Body  a) Small decrease in overall funding for the department going from $52,183 b) Slight increase in salaries line item for 1.6% COLA from $ 36,932 to $ c) Slight increase in FICA line item $ 2,998 to $ 3,043. d) Travel & Training decreased slighted from $6,800 to $ 6,000. e) Dues & Subscriptions line increased from $240 to $245.  to$52,024. 37,523.00    Administration  a) Moderate increase in total departmental appropriations from $ 542,702 to $ c) Moderate increases for fringe benefit line items (Retirement sees biggest d) Travel &' Training increased from $3,500 to $ 4,000 due toi increase in cost e) Dues & Subscriptions increased from $800 to $ 2,100 due to LexisNexis  575,012. impact) for classes. increasing.  b) Largest increase is in Salaries from $ 384,534 to $ 399,637.  Professional Services  a) As significant decrease in departmental budget from $266,827 to $ 133,287. b) Professional services/contract line item decreased from $33,700 to $ C) The Town Center line was decreased from $56,000 to $3 30,000 due to land d) Economic Development lien decreased from $135,827 to $ 45,000 due to e) Increase in Apple Country' Transit match from $5,000 to $9,687 to fully (Council agrees to keep funding at last year's amount of $5,000)  22,000 now secured. no incentives. cover match.  Elections line at $0 due to no elections.  PlamningDepartment  a) Slight increase in total departmental appropriation going from $156,601 to b) Biggest increase is in Salaries line going from $92,033 to $ 95,081 for merit  $161,058. and COLA    c) Slight adjustments to salary and fringe benefit lines due to merit pay and d) Travel & Training, Advertising, and Dues & Subscriptions all decreased e) Workers Comp adjusted up slightly due to salaries impacting premium.  COLA. slightly.  Town Facilities  a) As slight decrease in total departmental appropriations from $ 131,238 to $ b) Utilities line increase from $ 58,000 to $61,000 due to incase in utility costs c) Wellness Program line increased from $ 5,500 to $ 7,000 for exercise d) Newsletter Expenses adjusted down slightly from $400 to $300. e) Contract Services decreased from $18,000 to $13,500 due to removal of  131,138 for' Town Hall. equipment.  stream monitoring expense.  Police Department  a) A moderate increase in the overall budget going from $1,499,776 to b) Most of the expense increase associated with adjustments to salary fringe d) Law enforcement separation allowance budgeted for employeeretiring. e) Largest portion of increase is in the salaries line item going from $896,700 Second largest portion of the increase is in the fringe benefit line item h) Decrease in Holiday pay line from $26,238 to $ 25,300 due to less  $1,592,034.  line items with COLA and merit included c) Request for new MDTs is not included.  to$9 931,978.  items for COLA merit, and health insurance. g) LEO Separation Allowance line added at $8,364.  projected need.  Increase in Workers Comp from $19,930 ti $22,930 due to salaries update k) Possibly consider funding MDT's after midyear assessment or revenues.  and experience modification factor.  j) All other line items are level or no increase or decrease.    Suggestion was made by council that in order to fund MDT's which seem to be needed is to only purchase 2 new patrol vehicles in this upcoming budget year  thus have funding to be available to go towards MDT's.  ITDepartment  a) Nearly 13 years with One Who Serves and they continue to provide high b) Slight decrease in overall departmental budget from $215,880 to $208,580. c) This is mostly due to a decrease in capital related projects being d) Decrease in Contract line from $73,400 to $57,000 due to less hourly time e) Increase in Dues line from $25,420 to $37,420 for security training. f) Increase in Subscriptions IT line from $47,260 to $ 50,710 for new security g) Capital Expense line includes funding for police department server upgrade ($15,000) and misc. parts & Equipment ($5,000). h) A/V system upgrade considered at mid-year.  quality support at a cost effective price.  recommended.  needed for installing or updating systems.  audit software.  Contacted Services Fletcher Fire & Rescue  a) Fletcher Fire & Rescue (FF& R) will receive what tax levy produces on 11.5 b) Total appropriations for FF&R will increase from $1,371,104 to $ 1,473,071. c) This includes $24,000 that is budgeted for prior year adjustment.  cents of the Town's 34 cent tax rate this year.  Contracted Services Mills River Fire & Rescue  a) Mills River Fire & Rescue's portion of the tax: rate will remain at 11 cents b) Total appropriations for Mills River will increase from $129,172 to $ c) This appropriation may change slightly as we receive final property value  152,114.  estimates from the county.    Public Works  a) Moderate decrease in total departmental appropriations from $1,218,753 b) Large purchase of recycling and garbage carts last year of reason for drop This budget includes request for lowboy equipment trailer for hauling d) Does not include request for utility vehicle to replace golf cart. e) Salaries line sees moderate increase for merit and COLA adjustments from f) Fringe benefit line item increased for merit and COLA adjustments. g) Increase in M & R' Town Facilities from $ 70,000 to $74,000: for all ongoing h) Increase in Fuel Expenses from $22,500 to $24,500 for increased fuel i) Department Supplies decreased from $143,000 to $8,000 no recycling j) Capital Outlay line increased to $24,500 for lowboy trailer k) Landfill Charges staying level at $105,000 due to increase in recycling 1) Increase in uniforms line from $11,266 to $11,766 for cost of safety shoes. m) Decrease in' Tools & Equipment form $15,000 to $10,000 due tol lower than n) Slight increase in funding for Powell Bill revenues from $195,000to o) $197,000 budgeted on the revenue and expense side. p) This is primarily used for re-surfacing streets.  to$1,145,175.  in total departmental expenses. backhoe and other equipment. $366,872 to $378,570. maintenance costs. consumption. carts. activity.  anticipated costs for purchases.  $197,000.  Parks & Recreation  a) Slight decrease in overall departmental appropriation from $683,635 ti b) Additional full-time Maintenance Worker position not recommended at this c) Recommend replacement of Scag zero-turn riding mower d) Recommending permanent part-time Maintenance worker instead of  $661,187. time.  current practice of hiring seasonal help.    e) Part-time Salary increased from $81,950 to $86,300 for permanent part- f) Increase in Holiday Decorations from $ 4,000 to $5,000 for additional lights. g) Program Materials increased from $32,000 to $34,000 to match costs for 12 h) Advertising increased from $1,500 to $2,000 to better promote events. i) Department Supplies increased from $2,600 to $ 4,000 to match increased Concessions decreased from $ 9,000 to $ 7,000 based on decreased k) Capital outlay at $ 14,000 for replacement of Scag mower. Uniforms line increased from $ 1,400 to $1,750 for increased cost of m) Park Maintenance line increased from $41,674 to $45,000 to cover park n) Arboretum line increased from $1,000 to $2,000 for creation of community  time maintenance position.  events. activity. demand. clothing. activity. garden.  Capital Improvement Budget CIP  a) Recommended capital budget includes $0.85 of the tax levy to fund  eligible projects.  b) 0.85 generates $1,169,004 in revenue for FY 2020-2021 c) 0.65 generates $1,169,004 in revenue for FY 2020-2021.  d) 0.65 would be dedicated for projects supported by debt service and the remaining .02 would be for non-debt service projects, or pay as yous go. e) The amount oflevy available for debt service supported projects will be f) Amount of] levy available for new projects without debt will be $275,059.  $893,945.  CIP-Debt Service  a) Two projects funded under debt service - 1) Town Hall Improvements  Project; 2) Highway 25 Land Acquisition.    b) Debt Service requirements for the' Town Hall Project will be $563,962. c) Projected debt service requirements for the Highway 25 Land Acquisition e) Recommend payment to Unassigned Fund Balance with surplus debt  will be $182,266. service funds.  d) Surplus debt service available is $147,717.  CIP-Non-Debit Service or payasyougo projects  a) Police Vehicles- 3 Patrol Cars $119,500. b) Public Works Dump Truck $110,000.  c) Surplus non-debt service funds available is $45,599.  d) Recommend payment to unassigned fund balance with surplus non-debt  service funds.  General Fund Revenues  General Fund Revenues Revenue Source Current Taxes Motor Vehicle 2018 Taxes & Prior Years Tax Interest Tax Advertising Interest on Investments Powell Bill Interest Misc. Revenue Utilities Sales Tax Beer & Wine Tax  FY19-20 $ 4,167,987 $ 263,619 $ 15,500 $ 8,000 $ 1,500 $ 40,000 $ 1,200 $ 11,000 $ 718,000 $ 35,950  FY20-21 Inc./decr %Incr.  $ 4,397,743 $ 278,276 $ 11,000 $ 7,000 $ 1,000 $ 33,000 $ 600 $ 5,000 $ 715,400 $ 36,100  $ 229,756 $ 14,657 $ (4,500) $ (1,000) $ (500) $ (7,000) $ (600) $ (6,000) $ (2,600) $ 150  6% 6% -29% -13% -33% -18% -50% -55% 0% 0%    $ 60,900 $ 195,000 $ 1,680,000 $ 105,000 $ 7,800 $ 8,000 $ 4,470 $ 25,000 $ $ 8,000 $ 5,583 $ 10,000 $ 192,000 $ 4,000 $ 5,000 $ 1,000 $ 20,263 $ 7,594,772  $ 58,000 $ 197,000 $ 1,526,865 $ 90,000 $ 7,800 $ 6,000 $ 5,300 $ 20,000 $ $ 8,000 $ 5,908 $ 5,000 $ 200,000 $ 4,000 $ 3,500 $ 1,000 $ $ 7,623,492  $ (2,900) $ 2,000 $ (153,135) $ (15,000) $ $ (2,000) $ 830 $ (5,000) $ $ $ 325 $ (5,000) $ 8,000 $ $ (1,500) $ $ (20,263) $ 28,720  Cable Franchise Powell Bill Local Sales Tax Recreational Activities Business Registration Fee Land Use Permits ABC Law Enforcement Sale of Fixed Assets Grant Funding Lease Revenue Tipping Fee Tax Concession Stand ABC Distribution Police Revenue Memorial Golf Tournament Community Park Dvipmnt. Fund Appropriated Fund Balance Total General Fund Revenues  -5% 1% -9% -14% 0% -25% 19% -20% #DIV/O! 0% 6% -50% 4% 0% -30% 0% -100% 0%  Mayor Pro-Tem Bob Davy suggested that we: review things in six months to see  where we are with the budget given the current situation.  Discussion Followed:  Council agrees to review things in 6 months of the 20/21 FY Budget to see where  funds are at the time.    Council agrees to review things in 6 months of the 20/21 FY Budget to see where  funds are at the time.  Mayor Whiteside asked for a motion to adjourn and it was so: moved by Councilman  Eddie Henderson and seconded by Mayor Pro-Tem Bob Davy.  Motion carries all in favor. Adjourned: 11:51 am  Approved:  L/g/2020  Gls  Date  Mayor Rod' Whiteside    Town of] Fletcher Regular Meeting Minutes May 11,2020  Call the meeting to order at: 5:55 pm  Mayor Whiteside called the meeting to order and did a: roll call for all attendees in  the meeting.  Those who were in attendance electronically) are as follows:  Mayor Rod' Whiteside Mayor Pro-Tem Bob Davy Councilman Preston Blakely Councilman Eddie Henderson Assistant Town Manager Heather Taylor Planning & Zoning Director Eric Rufa Police Chief Erik Summey Parks & Recreation Director Greg Walker Public Works Director Jabbo Pressley  Councilwoman Sheila Franklin was not in the meeting at this time.  Town Manager Mark Biberdorf & Town Clerk Christine Thompson were at town  hall for this meeting.  Invocation: Moment of silence for all those who lost lives due to COVID-19.  Pledge of Allegiance: Omit at this time  ***Public Comment***  No comments were submitted to the clerk to be read at the meeting.  Approval of minutes-correction, additions or deletions.  (4/13)  Mayor Whiteside asked if council had any questions or comment on the minutes as presented. And if not doIhave a motion and it was so moved by Mayor Pro-Tem Bob Davy and Councilman Preston Blakely and seconded by Councilman Eddie  Henderson.    Motion carries all in favor. Council Updates  Mayor Pro-Tem Bob Davy stated that he received an email from Steve Abbott of DOT stating that funds are so low that they are stopping projects that have not been  funded and there will be no new contracts at this time.  Consent Agenda would expire in 6/23.  Approval of Robert Hutchison to serve another 3 year term on the ABC Board that Approval of Budget Amendment #1 to that FY 19/20 Budget Ordinance Approval of Resolution R-20-02 to adopt a Hazard Mitigation plan with Henderson Town Manager Mark Biberdorf went over the Consent Agenda items and  County.  answered questions council had on these items.  Discussion Followed:  Mayor Whiteside asked do we have a motion to accept the Consent. Agenda and it was accepted by Councilman Eddie Henderson and it was seconded by Councilman  Bob Davy.  Motion carries all in favor. Biberdorf, Town Manager.  Update on response efforts and impacts to services with COVID-19-Mark  Town Manager. Mark Biberdorf gave an update on the recent impacts on COVID-  19 in the town. Discussion Followed:  Councilwoman Sheila Franklin joined the meeting at 6:20 pm. Draft RFP for' Town Center project-Mark Biberdorf, Town Manager.  Town Manager Mark Biberdorf went over the proposed RFP draft from Kathleen Rose of! Rose &. Associates and answered the questions that council had on this proposal. He also stated that he has had several phone calls with interest in our property and that he: recommends that we move forward with this.    Discussion Followed:  Comments from the Town Manager Mark Biberdorf.  On the proposed development (to keep council informed and not engage in discussion) on Rutledge Road, Eric has been working really hard on this and he has been getting a lot off feedback on this and he provides a brief response that the land is not zoned for this purpose. He has been keeping good records on this andIhave as well. This is going before Planning Board by a zoom meeting this month and it will  be presented in June to council with the Public Hearing in July. On the Town Center project and the status of the land closings. Kenneth Youngblood's property has closed and we are close to the land swap with the Lipe property and the town property. Hopefully with the Kenneth Walker property we are getting very close to closing on that as well. On the Hwy 25 projectIknowl Bob mentioned something earlier on the crosswalks and they are not as attractive as stamped asphalt this is at thermoplastic coating that is colored and it looks ok once they get some striping done around it and they are essentially done with the project. Ithink what looks rough about the crosswalks is that you have got the old material that looks kind of faded Erici if you could make a note to see: if something can be Planning & Zoning Director Eric Rufa stated that from the very beginning of this it has gotten whittled down where initially it was stamped concrete that would have been the most sturdy and we might have assumed we were going to get fresh pavement into the vicinity of these crosswalks which much later into the process DOT informed us that would not be happening. Sooner or later at some point when Hwy 25 gets repaved and then they will have to replace the crosswalks at that time. Iknow it was brought up at the meeting last month about creating a general Facebook: page that would be different than the Police Department and the Parks & Recreation Facebook page for town matters. We are working on researching on what other places towns etc. are doing. Christine has been doing some research on this and hopefully we will have some information to bring to you at the June meeting. On the budget retreat on May 2 we are making the adjustments per the feedback from council. Ihave let department heads know what is in their recommended budget and we will get one more set of values on May 20 and then we will make some final tweaks. Ifit is more revenue we will apply that by taking the sales tax  done to sort of clean that up.  Discussion Followed:  We hope to get that operational in the next month or sO.    figure down. Iwill have the budget message ready by no later than June 1. Our public hearing will be at the: regular meeting and that will be June gth, Iappreciate Imentioned trying to do a call out to the general public on a litter sweep and Jabbo has a list of recommended streets. Does council have any objection with this? Council is ok with a call going out to residents to get involved in a litter sweep. Mayor Whiteside asked for a motion to adjourn and it was so moved by Mayor Pro-  council's feedback.  Tem Bob Davy and seconded by Councilman Eddie Henderson.  Motion carries all in favor. Adjourned: 06:51 pm  Approved:  6g/a0ao Date  Mayor Rod Whiteside