Town of Micro Tuesday - May 9, 2023 7:00 p.m. Micro Town Hall  Board ofCommissioners Meeting MINUTES  t ablisbeD  Staff] Present: Lisa Lee, Deputy Town Clerk: Johnny: Stanley, Public Works Director Others Present: Lee Worsley, Triangle] JCOG Nancy Medlin," Triangle] JC COG Kimberly Moffett, Interim' Town Clerk  Board of Commissioners Present: Marty Parnell, Mayor Kevin Worley, Mayor Pro" Tem Coy Stanley, Commissioner Katy Garcia, Commissioner 1. CALLTO ORDER  Call to Order Pledge of Allegiance Invocation  Mayor Parnell called the meeting to order at 7:02 p.m. The Mayor led everyone in thel Pledge of  Allegiance and Commissioner Stanley shared the Invocation.  2. PUBLIC COMMENT  A resident Question regarding suggestion about suggestion box  3. ADUSTMENT/ADOFTON OF THE AGENDA a. Adjustments to the Agenda  Itwas requested that three additional items be added. The first item will go under Consent fora Resolution Directing' Town Clerk to Certify Sufficiency of Annexation Application. Twoi items will go under New Business. The first will be reference: a Resolution Authorizing Johnston County to collect property taxes and the: second isa a contract regarding correctional facility offender/labor  program. b. Adoption of the. Agenda ACTION: Motion: Second: Vote:  Adoption of Agenda with adjustment as noted above  Commissioner Garcia Commissioner Stanley Unanimous  4. CONSENT AGENDA  (Items on the consent agenda are considered routine in nature or have been thoroughly discussed at previous meetings. Any member of the Board may request to have ani item removed from the consent  agenda forf further discussion.) a. Draft Minutes  April 11, 2023 - Regular Meeting    b. Resolution Directing Clerk to Certify Sufficiency- - 2023-10-ANX  Resolution #2023-07  ACTION: Motion: Second: Vote:  Adoption of Consent. Agenda as Presented  Commissioner Stanley Commissioner Garcia Unanimous  5. SPECIALPRESENTATION/INTRODUCTIONS  6. FINANCIAL REPORT a. '21-'22. Audit Report  Presenter: Lee Grissom S. Preston Douglas  Mr. Grissom joined the meeting via Zoom and presented details regarding thel FY '21-22 audit. He: stated the: audit was late being submitted. He further stated due to numerous, staff turnover, Mr. Grisson stated the audit was clean and had been submitted to thel Local Government He further stated that thej previous two audits were also very late. He offered his thanks to the He stated there were: no issues with management, no fraud nor was thereai need for an He shared information that included bank reconciliations need tol be completed on at timely basis moving forward. He also spoke about: segregation of duties, which is acknowledged can He: stated there were budget overages int the General Fund in multiple departments. He stated he did not feel there was any fraud, simply previous employees not havinga financial background and not understanding thej process. He further: stated that submission oflate audits speaks toi internal control and being able tol have thel books ready for at timely audit is extremely important. He stated with reference to financial reporting: and record keeping several accounts were notl being: accounted for appropriately. He: shared information about non-compliance related to debt serviçe ratio and: stated general fund reserve was not in good shape. Hestated the general fund was trending downward as well as the number of months in With reference to the Water Sewer Fund it has been in the negative for the past two years and it With reference to property tax collection, the state average is 98-99% and Micro was slightly He: stated it was very important to get a handle on the current financial situation.  a good portion of the required information was difficult to gather. Commission (LGC). It was accepted by the LGC on April 24, 2023.  COG staff for theirassistance. additional auditor to be consulted.  be difficult in a small municipality.  reserve. He stated ity was extremely important for this to turn around.  ise extremely important itl bei in the positive.  lower.    b. Financial Update  Presenter: Lee Worsley, Exec. Director- Triangle) Jo Council of Governments Thisi item was presented under Old Business - Triangle J Update.  7. PLANNING BOARD REPORT a., Planning Board Report  Presenter: Planning Board Representative  There was no report from thel Planning Board as the April 2023 meeting was cancelled. Ther next update willl bej provided at the) June 13, 2023 Board of Commissioners meeting.  8. POLICE REPORT  a. Police Department Monthly Update Presenter: Macon Jones, Police Chief  Chief) Jones was not: able to attend the meeting this evening. He provided a written monthly updated report, which was included in the: agenda packet. Commissioner Stanley shared the  report.  9. PUBLIC HEARINGS 10. NEW BUSINESS  a. Resolution - Daily Bank Deposits  Presenter: Kimberly. A. Moffett, Interim Town Clerk  Resolution #2023-04  Ms. Moffett shared information regarding this Resolution. She stated NCGS requires a daily bank deposit for municipalities. She further stated that ifit were the desire oft the governing board to allow for the requirement ofa set amount versus a daily deposit that could be done  via Resolution. ACTION: Motion: Second: Vote:  Motion to Adopt Resolution # 2023-04 Mayor Pro' Tem' Worley Commissioner Stanley Unanimous    b. Resolution Adopting Charter Amendment ofTriangle JCOG  Presenter: Lee Worsley, Executive Director- - Triangle Jo Council of Governments  Red Line Version Clean Version Resolution #2023-05  Mr. Worsley provided detailed information regarding proposed charter amendment for TriangleJo Council of Governments as well as a rebrand. He: shared details about the history and process. He: shared details regarding the name change and how it nol longer was the most appropriate: name: as the COG now represents many municipalities outside oft the Triangle. He stated the proposed charter changes must be approved by 2/3 of current membership. He stated the goal was tol have everything in place and ready for the change by July 1,2023. The new: name will be Central Pines Regional Council. Mr. Worsley shared details about the purpose and vision. He requested that thel board consider adoption of the Resolution,  accepting thej proposed changes to the COG.  ACTION: Motion: Second: Vote:  Motion to Adopt Resolution #2023-05 Commissioner Stanley Commissioner Garcia Unanimous  Presentation of FY 2023-2024 Recommended Budget  Presenter: Lee Worsley, Executive Director - Triangle]o Council of Governments Mr. Worsley provided details regarding the proposed FY '23-241 budget. He stated a Public Hearing would bel held to: allow for public comment: and input. He further stated potential adoption oft thel budget would take place ata Special Meeting following the Public Hearing. Hes stated the proposed date for the Public Hearing would be) June 13, 2023, which. isar regular board meeting and the proposed date for the Special Meeting, where the '23-'24 Details were shared regarding the difference oft the General Fund and the Water Stewer Fund. Hes stated the Water Sewer Fund is an' "enterprise" fund, which must stand on its own and is There is aj proposed overall reduction of 20% in the General Fund. There is no fund balance appropriated to create al balanced budget. There is no proposed property taxi increased and A: 2% water sewer rate is recommended. It wasi further stated that even witha 2% increased the water sewer fund is only breaking even and this is a dangerous position to bei in with an: aging system. Itwas further stated the) possibility exists there may be: a higher increasel based upon anyi increase approved by the County and/ort the Town of Kenly. There: are nos salaryi increases proposed. Additionally, the town will not be able to offer health insurance to employees. This budget will not fill the current vacancies oft the' Town Clerk or the Finance Officer and also leaves all part-time police positions vacant. The part time Public  budget would potentially be adopted, would be] June 15, 2023.  funded through fees collected by the town for water and sewer.  no significant changes tol levels of servicel being proposed.    Works employee hours would be cut from an average of 241 hours per week to: 12 averages per week. There was discussion about being able add a NCI Local Government LEAD Fellow to the town. This position will be offered to the town at a greatly reduced cost of $25,000 annually. This position would bea a full-time person for the town and with the addition ofai full-time staff person to the town, it will allow for thel hours of town hall tol be reconsidered. Mr. Worsley stated that high level the town is in a good position.  ACTION: Motion: Second: Vote:  Set Public Hearing for June 13, 2023 & Set Special Meeting for June 15, 2023  Commissioner Garcia Commissioner Worley Unanimous  d. Resolution Authorizing Johnston County to Collect Taxes on Behalf oft the Town of Micro  Presenter: Kimberly. A. Moffett, Interim Town Clerk  Ms. Moffett provided information regarding the annual requirement to authorize Johnston County to collect property taxes on behalf on municipalities. This Resolution authorizes Johnston County to collect all property tax fort the Town of] Micro for FY'23-24.  ACTION: Motion: Second: Vote:  Adoption of Resolution #2023-06 Commissioner Stanley Mayor Pro Tem' Worley Unanimous  e. Correctional Facility Inmate Labor Work Program Contract Presenter: Johnny Stanley, Public' Works Director  Mr. Stanley provided details and stated the cost to the town for daily manual! laborer is $1.00  per day. Currently, the worker is at the town 3 days a week.  ACTION: Motion: Second: Vote:  Approval of Contract Commissioner Stanley Commissioner Garcia Unanimous  11. OLD BUSINESS  a. Triangle] J Assistance tol Micro -I Monthly Update/Report  Presenter: Lee Worsley, Exec. Director Triangle J Council of Governments  Mr. Worsley provided a monthly update ofs service to the Town. He: stated it was required that we provide: a draft budget to the LGC no later than May 15, 2023. Following submission to the LGC, they will review: and provide feedback. It was further: stated that a draft version was submitted to the LGC andi ifthere are any questions from them the COG willl keep the board  updated and information.    Mr. Worsley addressed some oft the findings oft the audit and how we are assisting in clearing ups some of the concerns. He: stated that Ms. Medlin has completed alll bank reconciliations through May 2022 for the General Fund. We still need to complete the reconciliations fort the Water Sewer Fund. Itisl hoped that with the completion oft thel bank reconciliation it will Ms. Medline provided information and details about the lack oft bank reconciliations. She stated the current financial software had not been utilized. Itis now set up: and working properly. She further: stated that once everything is completely caught up, she will be: ablet to quickly hand everything over to the: auditor. She further stated that once everything related to FY' '21-22 is caught up: she willl begin to train Ms. Lee who will take over thel handling of this project. Moving forward, everything will be much easier once cleaned up and standardized. The board offered their thanks and appreciation to Ms. Medlin for her: assistance: and  greatly assist the auditor: and make the process smoother.  dedication.  Mr. Worsley stated that he fully expected to see mention of over expenditures in the next audit but following thati iti is hoped that finding will cease. He stated that a Purchase Order System has been set up thatallows every singlel linei item to be seen. He further stated that when required budget amendments can be completed. Hei further stated he felt good and feels we may have gotten thel budget stabilized withoutl having to use any many funds as initially thought would be necessary. He further: stated thel hope is that large fund balance  appropriations mayl be: able to be reduced.  Itv was stated that al Budget to Actual was also due to thel LGC by May 15, 2023. He stated this report was submitted yesterday. Details regarding the summary: report were provided. While we: are still concerned about the cash position, iti is hoped that ARPA funds willl help to The Powell Bill Fund balance is approximately $87,000. Mr. Worsley thanked Mr. Stanley for Ity was stated that the Community Building Renovation Fund balance stands ata approximately Mayor asked if we would still be using approximately 50% of ARPA Funds. Mr. Worsley stated approximately $80,0001 had been identified as eligible expenses for these funds. There was al brief discussion regarding the Town of Kenly and a proposed 3% increase. Itwas stated we will need to wait and see what increase the' Town of Kenly approves. Anyi increase Itwasa also stated that we: needed to verify with the) Johnston County Board of Elections previous election costs and then add those to the budget for the 2023 elections.  build that cash position back up.  his assistance with using these funds for required street repairs.  $280,000.  Kenly approves will be] passed onto to Micro residents.  12. COMMISSIONER REPORTS  Commissioner Garcia shared information about upcoming events including the Endless Yard Sale which willl bel held June 16&17. Additionally, it was agreed thata any panhandling permit  fees would be waived for the month of) June.    Movie nights will bel held on June 24 and July 8, with rain dates ofj July 1 and July 15. Goonies will bes shown on June 24a and Hook will be shown on) July 8. It was stated that should therel be any suggestions toj please reach out. Additionally, thel PTA from Micro Elementary School will  bet there selling popcorn and: snow cones.  13. BOARD REPORTS 14. ADJOURNMENT a. Adjourn the Meeting  With there being nothing further, the meeting was adjourned at 8:10 p.m.  ACTION: Motion: Second: Vote:  Motion to Adjourn Commissioner Garcia Commissioner Stanley Unanimous  Duly adopted this the 13th day of] June 2023 while in regular session.  Parnell Mayor  4E  ATTEST:  Kunly Aumocuett  Kimberly A. Moffett Interim Town Clerk