BOARD OF COMMISSIONERS  SECONDI BUDGET WORK SESSION. MEETING  MAY15,2024 Page 1  PRESENT: Mayor William L. Lewis, Jr.; Commissioners Tyrone Cantey, Josh Kohr, Karen PRESENT: City Manager Chris McGee; Assistant City Manager Cindy Morgan; Parks &  Lewis, Brenda Wilson and Danny Walsh  STAFF  Recreation Director Kelvin Hardesty; Network Administrator Todd Jachimiak; Planning Director Katrina Marshall; Finance Director Kimberly Walters; Fire ChiefTom Dorn; Firel Marshal John] Lewis; Police ChiefMike! Broadwell; Public Works Director Patrick Lee; Public Utilities Director Rick Day; TEC Sales Manager Pam Holder; Human Resources Manager Angie Hall; Public Information Officer Greta Meadows; and City Clerk Mary Weigl  8 9 10 11 12 16 20 22 24  13 Mayor Will Lewis called the second budget work session meeting of the Havelock Board of 14 Commissioners to order at 6:03 p.m. on May 15, 2024 at the Havelock Tourist & Event Center 17 Mayor Lewis reminded the Board that the objective tonight is to finish the capital issue papers 18 as well as the begin the personnel issue papers. City Manager Chris McGee also has a water and  15 with a quorum present.  19 sewer revenue presentation, toi include the fee schedule.  21 BUDGET ISSUE PAPERS 23 Recap: City Wide Paving  25 To recap Monday's discussion on City Wide Paving, at the end of the evening, Mayor Lewis 26 gave direction to the Board to think about paving and how they wanted to address the situation; 27 drive around on some roads that they normally don'tand evaluate the condition oft the roads. He 30 Commissioner Kohr once again urged the other Board members to consider raising the Motor  28 urged the Board to come back on' Wednesday ready to decide onj paving. 31 Vehicle fee from $7.50 per vehicle to $30.00 per vehicle.  29 32 34 36 38  33 Commissioner Walsh stated hei isi not in favor of raising the Motor Vehicle fee. 35 Commissioner Lewis stated she would bei ini favor ofac change, but not up to $30.00.  37 Commissioner Wilson is not ini favor of going upt to $30.00.  39 Commissioner Kohr questioned ift the other Board members felt that the current way the streets 40 are maintained adequate for what the Board expects? He stated hel has no answer, but he would 41 like each Commissioner to answer. Mayor Lewis reminded the Board that the current level is 44 City Manager Chris McGee relayed that the City is maintaining poor to fair roads right now and 45 too continue maintaining, just poor toi fair road conditions will cost $1 million inj paving next year. 47 Commissioner Walsh statedi inl his opinion the sewer ist the biggest problem that the City has, and 48 paying for that needs to be addressed first. Mayor Lewis replied that sewer does not come out 51 Mayor Lewis reiterated to thel Board that the monies collected from thel Motor Vehicle fees goes 52 into the general fund operating budget for Public Works' street work. At this time, Finance 53 Director Kimberly Walters reminded the Board that of the $7.50, the first $5.00 is an admin fee 54 and $2.50 goes towards paving, streets, and general maintenance of roads, etc. Continuing on, 55 she stated, ifthe Board increased the fee, they would have toj put the money into paving because 56 they would be going above those dollar rates sO they would have to earmark that money 59 Commissioner Walsh relayed he was not in favor of paving this year or increasing, the Motor 52 Commissioner Cantey was willing toi increase the Motor Vehicle fee to $25.00.  42 zero right now. No Commissioners answered Commissioner Kohr.  43 46 50  49 ofg general funds.  57 specifically for paving. 60 Vehicle fee.  58    BOARD OF COMMISSIONERS  SECONDI BUDGET WORK SESSION MEETING  MAY15,2024 Page 3  127 purposes witht thej property and evidence position, along witht the utilization of an additional truck 128 onj patrol. This willa allow a supervisor to utilize at truck for putting out cones, barricades, pulling 129 trailers, hauling property, bicycles, etc.... This will also allow us as ac cityt tor repurpose thej pickup 130 trucks to other departments within the city when the vehicle reaches higher mileage putting them 133 Afterl little discussion ont thei matter, thel Board concurred tol Parkingl Lot one( (1)Police Vehicle  131 at risk for police related functions. 134 in the amount of $55,000. 136 General Fund: Parks & Recreation 137 Ford Maverick Truck 138 Requested: $28,000 139 Budgeted: S0 140 Impact on Bill: $0.284 cents 141  132 135  142 Parks and Recreation requested one (1) additional vehicle (Ford Maverick) to assist with 143 increasing work volume, and also to improve overall recreation quality of service. Recreation 144 sold one of our trucks in 2021 when the cost of maintenance for the vehicle was more than the 145 appraised value. Int the time since, Parks andl Recreation has beeni navigating with 1 vehiclea across 148 Vehicles are always a vital asset in Parks & Recreation. Whether they are buses, mini-buses, 149 vans, ort trucks; vehicles greatly impact the programming capabilities ofai recreation department. 150 Adding the Ford Maverick would allow greater accessibilities to off-site parks, where staff 151 currently use personal vehicles often. This additional truck would also be used for 154 Commissioner Kohr questioned if Parks and Recreation Staff are compensated for using their 155 personal vehicles. Parks and Recreation director Kelvin Hardesty replied that Staff is 156 compensated: for training or conferences, but not for general running around town. Assistant City 157 Manager Cindy Morgan relayed that all Staff should be compensated for driving their personal 160 Commissioner Walsh questioned if there was another vehicle in the fleet that Parks and 161 Recreation could use, rather than purchasing one. Mayorl Lewis relayed that hel hoped the Board 162 would not consider funding a Parks and Recreation vehicle when they just turned down funding 163 aFire Admin vehicle. Thel Board couldi reconsider the Firel Department request and thens sit down 164 witht the City Manager to shuffle vehicles, gaining the City two (2) vehicles int the fleet. 166 After considerable discussion, the Board concurred to place $60,000 in the Parking Lot for  146 the entire department with maintenance having priority.  147  152 conferences'rainings improving employee development opportunities.  153  158 vehicles while conducting City business.  159  165 168  167 thel Fire Admin vehicle. 169 General Fund: Fire- - Rescue 170 3Firefighter/EMI'S 171 Requested. $165,879 172 Budgeted: 80.00 173 Impact on Bill: $1.68 cents  174  175 The department requested three (3) additional personnel (3 - FF/ EMT's) to assist with the 176 increasing call volume. Thet three personnel would allow for 1 more person pers shift. This would 177 increase shift staffing from 7to 8j personnel. Additional staff divided between the two stations 178 would allow for simultaneous fire and ems coverage. The department currently utilizes a cross 181 As explained at the Spring Retreat, the department had zero resources available to answer 182 additional calls for service a total of 783 times in 2023. This occurs when staff are already 183 assigned to calls. Furthermore, Cherry Point Fire Department assisted or took 292 EMS calls 184 duringt those periods ofz zeroi resources. Thei need for mutual aid assistance should bet the exception 185 not the norm. Finally, it should be noted that the city is losing ems revenue by not answering its 188 One other point of emphasis that should be noted is the identified turnover of paid staff due to 189 low staffing levels. Paid staff suffer from a heavy workload not experienced in neighboring  179 staffing method to cover fire, ems, and rescue needs.  180  186 own calls. 187    BOARD OF COMMISSIONERS  SECONDI BUDGET WORK SESSION MEETING  MAY1 15, 2024 Page 5 253 advancement. 254  255 Currently, the inspections staff consists ofal Part-Time Level III Building Inspector and a Level 256 IBuilding Inspector. This full-time position is needed to expand the current part-time position 257 to full-time. Furthermore, the current part-time inspector will be leaving in June 2025 and this 258 full-time position is planned tor replace the part-time inspector position. 260 Inc conclusion, the City needst tor recruit and! hiret thei full-timei inspector inl FY24-25. Itise essential 261 toj provide this professional service for the growth and development oft the City. 263 Thel Board concurred to readdress thisi item later in budget deliberations.  259 262 264  265 General Fund: Police 266 New Police Officer Position 267 Requested: $71,218 268 Budgeted: $0.00 269 Impact on Bill: $0.72 cents  270  271 Thel Havelock] Policel Department: is currently staffed with 26: sworn positions. Thisis isar reduction 272 ofthree sworn positions sincet the School Resource Officer positions were eliminated int the 2023- 273 2024 budget year. Although they were primarily in the schools 91 months out of the year, they 276 Our current organization structure schedules four officers per patrol shift. We have one police 277 K9p position that is currently assigned toi investigations, however he works a patrol rotation as an 278 added officer ont the shift tol help with shift shortages. (With the upcoming restructuring, he will 281 With the current staffing levels of four officers per shift, the shift is often required to hire 282 overtime officers to cover any sickness, training, court, vacation, vacancies, and busy times on 285 The addition of one police officer position would allow for patrol to have one added officer to 286 workas splits shift one eachs side oft the working rotation (7 days per week). This would significantly 287 help during peak call times, provide extra backup throughout the shift, and fill in shifts when 288 they are short for the variety of reasons listed above. This would also reduce the amount of 289 overtime money that we: are currently spending to maintain minimum staffing. 291 Thel Board concurred to readdress thisi item lateri in budget deliberations.  274 were also utilized during summers, weekends, and special events.  275  279 be permanently assigned top patrol)  280 283 weekends. 284  290 292  293 General Fund: Teleommunications 294 Records Clerk 295 Requested: $55,238 296 Budgeted: S0 297 Impact on Bill: $0.56 cents 298  299 The current records clerk position at the police department has a wide variety of job 300 responsibilities toi include all records management, reports, state andi federal crime reporting. The 301 overall job task list and responsibility is extremely lengthy and our current clerk is often 302 overwhelmed in her duties. There has also been a significant increase in expungements due toa 303 change in state regulations. Our current records clerk also fillsi in with telecommunications when 306 The records clerk assistant will be a position that will have face to face communication with 307 visitors in the lobby of the police department, reduce the workload on the current records clerk, 308 willl bet trainedi in all aspects oft ther records clerk position for future advancement, and have future 309 responsibilities with the possibility of state accreditation for the police department. 311 Thel Board concurred to readdress this item lateri in budget deliberations.  304 someone: is out unexpected, ifovertime isi needed, or during criticali incidents.  305  310 312  313 General Fund: Parks and Recreation 314 1Parks Maintenance Worker 315 Requested: $43,324    BOARD OF COMMISSIONERS  SECOND BUDGET WORK SESSION MEETING  MAY 15,2024 Page 7  379 Commissioner Kohr reiterated that he is only willing to do this ifanimal control is cut. 381 The Commissioners discussed their personnel priorities as the following: 383 All Commissioners agreed to fund the 31 Firefighter/EMT positions. 387 Commissioner Lewis: Fund the Building Inspector and the Police Officer. 389 Commissioner Wilson: Fund the Building Inspector and Police Officer. 391 Commissioner Cantey: Fund the Building Inspector and Police Officer.  380 382 384 386 388 390 392 395  385 Commissioner Walsh: Fund thel Records Clerk at half, and fund the Building Inspector at half.  393 Commissioner Walsh relayed that he did not agree with Commissioner Kohr in cutting animal 394 control. He stated in fact, he was going to ask for ani increase in animal control funding. 396 At this time, Police Chief Broadwell address the Board regarding Commissioner Kohr's desire 397 to cut animal control. He stated that Animal Control Officer Cheyenne Koons runs a lean crew 398 consisting ofa few part-time staff and volunteers. Additionally, Ms. Koons requires little-to-no 401 Having no animal control would put a strain on the police department staff and officers. Chief 402 Broadwell relayed that it would also overwork the County animal control officers; however, it 405 Inc conclusion, Chief Broadwell reiterated that having an Animal Control Officer takes a 408 After an extensive amount of discussion, Commissioner Kohr made a motion to cut animal 409 control from the FY2024-25 budget. Commissioner Cantey seconded and the motion did not 410 pass. fAye votes were Commissioners Kohr andCantey; Nay votes were: Commissioners Wilson, 413 At this time, Commissioner Lewis asked if the Board was interested in raising taxes 3.5 cents 414 and put it all towards paving, fund the 3 Firefighter/EMT positions and drop the $7.50 Motor 417 Mayor Lewis asked the Board for their consensus on funding the positions, other than the 3 418 Firefighter/ EMT positions. The Board concurred to also fund the Police Officer and the 421 At this time, Commissioner Walsh made aj motion to give $15,000 to Animal Control. There  399 supervision. 400 404 407  403 would save the City from paying shelter fees to the County. 406 tremendous strain off of the police department staff and officers.  411 Lewis and Walsh! (2-3).  412 416 420 423 425 428 431 Department. 432 436 439  415 Vehicle Fee. This would be a total tax increase of 5.18 cents.  419 Building Inspector at half, hiring this position after. January 1, 2025.  422 was no second and the motion died without a second.  424 Ms. Walter relayed these personnel updates would be a2 2.78 cent tax increase. 427 ManagersContingeney Fund left from the Great Lakes Fire in Spring 2023.  426 Continuing on with Parking Lot items, the Board was reminded that there is money in the 429 Commissioner Walsh suggested using those monies for the Fire Admin vehicle as well as the 430 Auto Pulse and Detibrillator, seeing as the monies came to the City because of the Fire 433 City Manager Chris McGee relayed that av vehicle PO would not be able tol be obtainedinatimely 434 manner. However, the auto pulse and defibrillator and Hwy 70 mulching would probably be the 437 Commissioner Kohr stated he was in favor of cutting the Fire Admin vehicle and/or the Police 440 Mayor Lewis relayed that he would be in favor of cutting door controls and servers before he  435 only projects that could be funded with these monies, this year.  438 Department vehicle. He stated these vehicles are not needed, in his opinion.  441 would cut a vehicle.    BOARD OF COMMISSIONERS  SECOND BUDGET WORK SESSION MEETING  MAY1 15,2024 Page 9  Didy youg generate the WATERrevenuesi neededto pay for Operations and Maintenanceby itself? Operating Ratio, not including depreciation  2.00 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2019  2020  2021  2022  2023  472 473  Didy you generate the WATERI revenues needed to payf for Operations and Maintenance: and existing debts service?  Debt Service Coverage Ratio  4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 2019  2020  2021  2022  2023  474 475  Didy youl have enoughl liquidity in WATER to payy your current liabilities att thee end oft they year?  Quick Ratio  25.00 20.00 15.00 10.00 5.00 0.00 2019  2020  2021  2022  2023  476 477  How many days couldy you continue to operate the WATER utility with the cash level available?  Days Cash on Hand  1200 1000 800 600 400 200 2019  2020  2021  2022  2023  478 479    BOARD OF COMMISSIONERS  SECONDI BUDGET WORK SESSION MEETING  MAY 15, 2024 Page 11  Didy you! have enoughl liquidityi in SEWERt top pay your current! liabilities att thee end ofthey year?  Quick Ratio  30.00 25.00 20.00 15.00 10.00 5.00 0.00 2020  2021  2022  2023  2024  488 489  How many days couldy you continue to operate the SEWERL utilitywitht the cashl level available?  Days Cash on Hand  700 600 500 400 300 200 100 2020  2021  2022  2023  2024  490 491  Howr much! have your SEWERutility/sassets. depreciated  (nearing thee end oft theirl lives)?  Percent of Capital Assets Depreciated  0% 20% 40% 60% 80% 100% 2020  2021  2022  2023  2024  492 493  Additional Board Consideration  Ratei increase for Water-1 10% F Ratei increaset for Sewer 25% Motor Vehicle Fee- $30 Noi increaset for Stormwater Fee Noi increase tov Water Capital Reserve Stormwater Trashe7 7.5% Noi increase tos Sewer Capital Reserve Taxi increase- $0.021 tof fund Fire/EMS  Recommendation Water@1 Useageot5,000gpm 10% Sewer @2 25% WCRF SCRF  $34.28 $89.59 $10.50 $12.00 $23.11 $4.00 $173.48 150.83 $22.65  Totall Utility Increase  494 495 496 CLOSING 497    BOARD OF COMMISSIONERS MAYI 15, 2024 Page 12  SECOND BUDGET WORK SESSION MEETING  498 Based on the decisions of the Board, the following isas summarization of budget issue papers as 499 ofMay 15,2024, with the Manager moving vehicles around as he sees the need:  500  Increasei int tax rate 4 cents to. .72 3Cents for Personnel 3Fire/EMT 1Police Officer 1Building Inspector 3for half ofayear 1Cent for Paving Capital Improvement Projects Defib/Autopulse Camera Server Security Doors Mulch Police Vehicle Fire Admin Vehicle Total Added Fund Balance Fund Balance Alreadyl Includedi in Budget Total Fund Balance Used $140,000 of this years funds put in Capital Reserve for Quint Motor Vehicle Taxi is remaining $7.50  $74,000 $30,000 $35,000 $25,000 $55,000 $60,000 $279,000 $197,000 $476,000  501 502 504 session. 505 506 509 513 515 516 Attest: 517 518 Nayl 519 Mary ceigl 520 City Clerk  503 Mayor Lewis then reminded the Board that the FY2024-25 will be discussed at the next budget  FY2024-25 Rates and User Fees  Jvo ADJOURNMENT/RECESS 512 The meeting recessed at 10:10p.m. 514 Date approved: e3,2024  510 Commissioner. Joshl Kohr moved to recess until 1:00 p.m. on Friday, May 17,2024t to continue 511 budget discussions. Commissioner Cantey seconded and the motion carried unanimously. (5-0)  Léwis, Jr., Mayor  WAgA  wie