City of Mount Airy Regular Board Meeting March 7, 2024 6:00 pm  Council Chamber Municipal Building 800 South Main Street Mount Airy, N.C.  This Meeting will be held in the Council Chamber oft thel Mount. Airy Municipall Building and also virtually by viewing through the  following Zoom link:  Atps/1SU2web.zpom.tS/86384960422  using password COMA ifprompted. You may: also view this meeting vial Facebook Live by connecting to the City's Facebook page The City of Mount Airy, NC. Link will be posted on www.mountairyorg the day of the meeting.  AGENDA  Welcome and Call to Order.. Invocation.. Pledge of Allegiance..  Mayor Cawley Commissioner Wood Everyone  Items for Discussion and Possible Action  1.) APPROVAL OF AGENDA:  2.) CONSENT AGENDA: The consent agenda is comprised of matters of routine business that do not require discussion by the Board. Items included on this agenda are indicated with an asterisk (*) and will all be considered with one motion by the Board. Should a Board member wish to remove an item from the consent b) **Project Ordinance for Spencer's Mill Conference Center Grant Project: Ordinance No. 2024-026 **Project Ordinance Mount Airy Public Library Improvements Grant Project: Ordinance No. 2024-027 d) **Project Ordinance for Ararat River estoration/Greenway Grant Project: Ordinance No. 2024-028 e) **Budget Ordinance Amendment for CIF Transfers, Special Appropriation Fund Appropriations, and Close g) **Resolution Approving Martin, Starnes & Assoc., CPAS, P.A.-Audit Contract: Resolution No. 2024-053 1) **Resolution Setting Public Hearing for Request to Rezone Property Located at 215 Jones School Road:  agenda, that item will be considered in its listed place on the agenda. a) **Approval of Minutes: -February 7, 2024 Recessed Meeting Minutes  out of Economic Stabilization Fund: Ordinance No. 2024-029 f) **Resolution Making ABC Board Reappointment: Resolution No. 2024-052 h) **Resolution Approving Tax Releases: Resolution No. 2024-054  Resolution No. 2024-055  3.) SPECIAL RECOGNITIONS: a) 4.) PUBLIC HEARINGS: PRESENTATIONS: 6.) PUBLIC FORUM: 8.) NEWI BUSINESS:  City Employee Anniversary Recognitions  5.)  7.) ITEMS REMOVED FROM CONSENT AGENDA:  a) Resolution Awarding Demolition Contract for 412 Franklin Street: Resolution No. 2024-056 b) Resolution Approving Updated Fund Balance Policy: Resolution No. 2024-059  c) Board to Discuss Water Rates d) Board to Discuss Recycling  9.) OTHER BUSINESS: 10.) REMARKS BY OFFICIALS:  a. City Council b. City Manager City Attorney    11.) CLARIFICATIONREBUTTAL BY MAYOR. AND CITY COUNCIL:  12.) CLOSED SESSION: a) 13.) ADJOURNMENT:  Pursuant to NCGS 143-318.11()6) Acquisition of Property    MOUNT AIRY, NORTH CAROLINA RECESSED MEETING MINUTES February 7, 2024  MEMBERS PRESENT: Mayor Pro Tempore Chad Hutchens, Commissioners Tom Koch, Marie  Wood, Phillip Thacker and Deborah Cochran. MEMBERS ABSENT: Mayor Cawley  Mayor Pro Tempore Hutchens welcomed everyone and called the meeting to order. On motion by Commissioner Koch and passed unanimously, the agenda was approved.  APPROVALOF AGENDA: NEW BUSINESS unanimously:  a) Resolution 2021-019-Kesolation Awarding Demolition Contract for 314 Franklin Street: Commissioner Cochran made a motion to approve Resolution 2024-049 and it was passed  RESOLUTION NUMBER 2024-049  RESOLUTION, AWARDING DEMOLITION CONTRACTTOSOWERS CONSTRUCTION  3141 Franklin Street  WHEREAS, the City of Mount Airy purchased the property located at 314 Franklin Street for the purpose of the Spencer's Mill Redevelopment Project/economic development; and WHEREAS, the City of Mount Airy advertised: for demolition bids for said property; and  WHEREAS, the City received three bids with results as follows:  Company: Sowers Construction Bill Norman Construction  Bid: $20,000.00 $80,804.00  T&T Abatement Contractor Services, Inc. $21,900.00  WHEREAS, iti iss staff recommendation to award the demolition contract for 314 Franklin NOW,THEREFORE BE: IT RESOLVED BYTHE CITY OF MOUNT AIRY BOARD  Street to Sowers Construction at the cost of $20,000.00:  OF COMMISSIONERS MEETING IN OPEN SESSIONTHAT:  Section 1. The Board of Commissioners does hereby award the demolition bid for 314 Section 2. The Board of Commissioners does hereby authorize the execution of said  Franklin Street to Sowers Construction at a cost of $20,000.00. demolition contract per review and approval by the City Attorney.  1    Section 3. This resolution shall become effective upon approval. Approved and adopted this the 7th day of February, 2024.  RECESS:  On motion by Commissioner Koch the board will recess until February 13, 2024 at 1:00 for the Strategic Planning Session at the Mount Airy City Schools Administrative Office.  Approved and adopted this the 7th day of March, 2024.  Mayor, Jon Cawley  ATTEST:  Melissa N. Brame, City Clerk  2    ORDINANCE NUMBER 2024-026 PROJECT ORDINANCE FOR  SPENCER'S MILL CONFERENCE CENTER GRANT PROJECT  WHEREAS the City of Mount Airy has accepted a grant award from the Current State Appropriations Act, Session Law (S.L.)2023-134 from the Regional Economic Reserve, which is being administered byt the Office of State Budget and Management, for the purpose of the Spencer's Mill Conference Center Grant BE IT ORDAINED by the Board of Commissioners of the City of Mount Airy, North Carolina, that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following project The project authorized is for the Spencer's Mill Conference Center Grant Project as follows:  Project;  ordinance is hereby adopted:  Section 1  Project Number: Amount: Section 2 Section 3  12022 $13,000,000 grant  The officers of this unit are hereby directed to proceed with the project within the terms oft the award  documents and the budget contained herein. The following amounts are. appropriated for the project:. Economic and Physical Development  $ 13,000,000  Section 4 Grant Proceeds Section 5 regulations. Section 6 Section 7  The following revenues are anticipated to be available to complete this project:  $ 13,000,000  The Finance Officer is hereby directed to maintain within the Project Fund sufficient specific detailed accounting records to satisfy the requirements of the grantor agency, the grant agreements, and federal Funds may be advanced from the General Fundi for the purpose of making payments as due. Reimbursement requests should be made to the grantor agency in an orderly and timely manner. Copies oft this project ordinance shall be furnished to the Clerk to the Governing Board, and to the Budget  Officer and the Finance Officer for direction in carrying out this project.  Adopted this 7h day of March, 2024.  Mayor  Attested:  City Clerk    ORDINANCE NUMBER 2024-027 PROJECT ORDINANCE FOR  MOUNT AIRY PUBLIC LIBRARY MPROVEMENTS GRANT PROJECT  WHEREAS the City of Mount Airy has accepted a grant award from the Current State. Appropriations Act, Session Law (S.L.)2023-134 from the Regional Economic Reserve, which is being administered by the Office of State Budget and Management, for the purpose of the Mount Airy Public Library Improvements BE IT ORDAINED by the Board of Commissioners of the City of Mount Airy, North Carolina, that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following project The project authorized is for the Mount Airy Public Library Improvements Grant Project as follows:  Grant Project;  ordinance is hereby adopted: Section 1  Project Number: Amount: Section 2 Section 3  12023 $1,500,000 grant  The officers of this unit are hereby directed to proceed with the project within the terms of the award  documents and the budget contained herein. The following amounts are appropriated for the project:  Culture and Recreation Section 4 Grant Proceeds Section 5 regulations. Section 6 Section7  $ 1,500,000  The following revenues are anticipated to be available to complete this project:  $ 1,500,000  The Finance Officer is hereby directed to maintain within the Project Fund sufficient specific detailed accounting records to satisfy the requirements of the grantor agency, the grant agreements, and federal Funds may be advanced from the General Fund for the purpose of making payments as due. Reimbursement requests should be made to the grantor agency in an orderly and timely manner, Copies of this project ordinance shall bet furnished to the Clerk to the Governing Board, and to the Budget  Officer and the Finance Officer for direction in carrying out this project.  Adopted this 7h day of March, 2024.  Mayor  Attested:  City Clerk    ORDINANCE NUMBER 2024-028 PROJECT ORDINANCE FOR  ARARAT RIVER STREAM RESTORATION AND GREENWAY GRANT PROJECT  WHEREAS the City of Mount Airy received notice of a funding award from the State Emergency & Disaster Response Reserve funds administered by the NC Department of Public Safety for the purpose of BE IT ORDAINED by the Board of Commissioners of the City of Mount Airy, North Carolina, that this award is hereby accepted and that, pursuant to Section 13.2 of Chapter 159 oft the General Statutes of The project authorized is fori the Ararat River Stream Restoration and Greenway Grant Project as follows:  the Ararat River Stream Restoration and Greenway Grant Project; North Carolina, thei following project ordinance is hereby adopted:  Section 1  Project Number: Amount: Section 2 Section 3  City of Mount Airy 2023-2024 $4,000,000 grant  The officers oft this unit are hereby directed to proceed with the project within thet terms of the award  documents and the budget contained herein. The following amounts are appropriated for the project:  Public Works/Transportation  $ 4,000,000  Section 4 Grant Proceeds Section 5 regulations. Section 6 Section 7  The following revenues are anticipated to be available to complete this project:  4,000,000  The Finance Officer is hereby directed to maintain within the Project Fund sufficient specific detailed accounting records to satisfy the requirements of the grantor agency, the grant agreements, and federal Funds may be advanced from the General Fund for the purpose of making payments as due. Reimbursement requests should be made to the grantor agency in an orderly and timely manner. Copies of this project ordinance shall be furnished to the Clerk to the Governing Board, and to the Budget  Officer and the Finance Officer for direction in carrying out this project.  Adopted this 7th day of March, 2024.  Mayor  Attested:  City Clerk    A24-013  ORDINANCE # 2024-029 BUDGET ORDINANCE AMENDMENT  WHEREAS the City of Mount Airy adopted the 2023-24 budget on June 1,2 2023;  ANDI WHEREAS the City of Mount Airy will transfer $3,866,000 from the General Fund to the Capital Investment ANDI WHEREAS the City of Mount Airy willi increase the amount oft thet transfer from the Economic Stabilization Fund to the Capital Investment Fund $1,000. All funds willl be transferred from the Economic Stabilization Fund to the ANDI WHEREAS the City of Mount. Airy will fund special appropriations as follows: Surry Arts Council $87,500, Mount Airy Publicl Library $103,650, Mount Airy Rescue Squad $10,000 and Mount Airy Museum of Regional History ANDI WHEREAS iti is necessary to amend thel budget ordinance in order to appropriate funds for thet transfers and ANDI WHEREAS General Statute 159-15 of the North Carolina Government Fiscal Control Actp provides authority to NOW, THEREFORE, be it ordained that authorization isl hereby given to make the following adjustments:  Fund as pert thel Fund Balance Policy;  Capital Investment Fund and the Economic Stabilization Fund will be closed;  $10,000; special appropriations; amend a current municipal budget;  Increase (Decrease) 3,866,000 (33,000) 3,833,000 3,833,000 3,833,000 211,150 3,655,850 3,867,000 1,000 3,866,000 3,867,000 1,000 1,000 1,000 1,000  Section 1. General Fund Appropriations Transfer to Capital Investment Fund Appropriation to Fund Balance Section 2. General Fund Revenue Estimates Appropriation ofFund Balance Section 5. Capital Investment Fund Appropriations Legislative Appropriation to Fund Balance  Section 6. Capital Invesment! Fund Revenue Estimates Tranfer from Economic Stabilization Fund Transfer from General Fund  Section 7. Economic Stabilizaiton Fund Appropriations Transfer1 to Capital Investment Fund Section 8. Economic Stabilization Fund Revenue Estimates Appropriation ofFund Balance Adopted this 7th day of March, 2024.  Mayor  Attested:  City Clerk    RESOLUTION: 2024-052  RESOLUTION: MAKING ABCI BOARD! REAPPOINTMENT  WHEREAS, Tommy Brannock's term on the ABC Board will expire on March 31, 2024; WHEREAS, Mr. Brannock has expressed interest in being reappointed and it is staff NOW,THEREFORE BE: IT RESOLVED BYTHE CITY OF MOUNT AIRY BOARD  and  recommendation to reappoint Mr. Brannock to the ABCI Board: OF COMMISSIONERS MEETING IN OPEN SESSION' THAT:  Sectionl. Tommy Brannock is hereby reappointed to the ABC Board for another three-year  term, which shall expire March 31, 2027.  Section 2. This resolution shall become effective upon approval. Approved and adopted this the 7th day of March, 2024.  Jon Cawley, Mayor  ATTEST:  Melissa N. Brame, City Clerk    Resolution Number: 2024-053  WHEREAS the Board of Commissioners oft the City of Mount Airy desires to engage the services of Martin Starnes & Associates, CPAS, P.A. to perform the audit of the financial statements for WHEREAS Martin Starnes & Associates, CPAS, P.A. has submitted an engagement letter and audit contract consistent with the terms and conditions of their proposal to audit each of the five NOW, THEREFORE BE IT RESOLVED that the Mayor of the City of Mount Airy is hereby authorized to execute a contract with Martin Starnes & Associates, CPAs, P.A. to perform said  the year ending June 30, 2024; and  years ended June 30, 2025; and  audit for a fee of$ $37,130. Adopted this 7nd day ofMarch, 2024.  Mayor Attested:  City Clerk    Memo  To: City Manager, Mayor and Board of Commissioners From: Pam M Stone, Finance Director Date: February21,2024  Re: Recommendation for Approval of Audit Contract  In. January, 2021 the Board of Commissioners of the City of Mount Airye extended the audit contract with Martin Starnes & Associates, CPAS, P.A. out of Hickory, NC, with thei intent to continue the relationship for no less than five years. The upcoming audit for the year ending June 30, 2024 will represent the Ihave attached proposed Resolution # 2024-053 which authorizes thel Mayor to execute a contract with Martin Starnes & Associates, CPAS, P.A. to perform the audit for the fiscal year ended June 30, 2024. Our feet for the 2023-24 audit will be $37,130, $34,000 for the audit fee and $3,130 for the single audit.  fourth year of that five-year period.    LGC-205 The Governing Board City Council of Primary Government Unit City of Mount Airy, NC  CONTRACT TO AUDIT. ACCOUNTS  Rev. 11/2023  and Discretely Presented Component Unit (DPCU)(fa applicable)  N/A  Primary Government Unit, together with DPCU (ifa applicable), hereinafter. referred to as Governmental Unit(s)  and Auditor Name Auditor Address  Martin Starnes & Associates, CPAS, P.A. 730 13th Avenue Drive SE, Hickory, NC 28602  Hereinafter referred to as Auditor 06/30/24  for Fiscal Year Ending  Date Audit Will Be Submitted to LGC Must be withinf fourr months ofF FYE  10/31/24  hereby agree as follows:  1. The Auditor shall audit all statements and disclosures required by U.S. generally accepted auditing standards (GAAS) and additional required legal statements and disclosures of all funds and/or divisions of the Governmental Unit(s). The non-major combining, and individual fund statements and schedules shall be subjected to the auditing procedures applied in the audit of the basic financial statements and an opinion shall be rendered in relation to (as applicable) the governmental activities, the business- type activities, the aggregate DPCUS, each major governmental and enterprise fund, and the aggregate remaining fund information (non- major government and enterprise funds, the internal service fund type, and the fiduciary fund types). The basic financial statements shall include budgetary comparison information in a budgetary comparison statement, rather than as RSI, for the General Fund and any annually budgeted Special Revenue funds. 2. At ar minimum, the. Auditor shall conduct the audit and render the report in accordance with GAAS. The Auditor shall perform the audit in accordance with Government Auditing Standards (GAGAS) if the Governmental Unit expended $100,000 or more in combined Federal and State financial assistance during the reporting period. The auditor shall perform a Single Audit ifr required by Title 2 US Code of Federal Regulations Part 200 Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart F( (Uniform Guidance) or the State Single Audit Implementation Act. This audit and all associated audit documentation may be subject to review by Federal and State agencies in accordance with Federal and State laws, including the staffs of the Office of State Auditor (OSA) and the Local Government Commission (LGC). If the audit requires a federal single audit in accordance with the Uniform Guidance ($200.501), it is recommended that the Auditor and Governmental Unit(s). jointly agree, in advance of the execution of this contract, which party is responsible for submission of the audit and the accompanying data collection form to the Federal Audit Clearinghouse as required under the Uniform Guidance ($200.512).  Effective for audits of fiscal years beginning on or after June 30, 2023, the LGC will allow auditors to consider whether a unit qualifies as a State low-risk auditee based upon federal criteria int the Uniform Guidance $200.520(a), and (b) through (e) as it applies to State awards. In addition to the federal criteria in the Uniform Guidance, audits must have been submitted timely to the LGC. Ifi in the reporting year, or in either oft the two previous years, the unit reported a Financial Performance Indicator of Concern that the audit was late, then  Page 1    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 11/2023  the report was not submitted timely for State low-risk auditee status. Please refer to Discussion of Single If the audit and Auditor communication are found in this review to be substandard, the results oft the review may be forwarded to the North Carolina State Board of CPA Examiners (NC State Board). 3. Ifan entity is determined to be a component of another government as defined by the group audit standards, the entity's auditor shall make a good faith effort to comply in a timely manner with the requests of 4. This contract contemplates an unmodified opinion being rendered. If during the process of conducting the audit, the Auditor determines that it will not be possible to render an unmodified opinion on the financial statements oft the unit, the Auditor shall contact the LGC Staff to discuss the circumstances leading to that conclusion as soon as is practical and before the final report is issued. The audit shall include such tests of the accounting records and such other auditing procedures as are considered by the Auditor to be necessary in the circumstances. Any limitations or restrictions in scope which would lead to a qualification should be fully 5. Ifthis audit engagement is subject to the standards for audit as defined in Government Auditing Standards, 2018 revision, issued by the Comptroller General of the United States, then by accepting this engagement, the Auditor warrants that he/she has met the requirements for a peer review and continuing education as specified in Government Auditing Standards. The Auditor agrees to provide a copy oft the most recent peer review report to the Governmental Unit(s) and the Secretary of the LGC prior to the execution of an audit contract. Subsequent submissions of the report are required only upon report expiration or upon auditor's receipt of an updated peer review report. If the audit firm received a peer review rating other than pass, the Auditor shall not contract with the Governmental Unit(s) without first contacting the Secretary of the LGC for a Ift the audit engagement is not subject to Goverment. Auditing Standards or if financial statements are not prepared in accordance with U.S. generally accepted accounting principles (GAAP) and fail to include all disclosures required by GAAP, the Auditor shall provide an explanation as to why in an attachment to this 6. Itis agreed that time is of the essence int this contract. All audits are to be performed and the report of audit submitted to LGC Staff within four months of fiscal year end. Ifit becomes necessary to amend the audit fee or the date that the audit report will be submitted to the LGC, an amended contract along with a written 7. Itis agreed that GAAS include a review of the Governmental Unit's (Units') systems of internal control and accounting as same relate to accountability of funds and adherence to budget and law requirements applicable thereto; that the Auditor shall make a written report, which may or may not be a part of the written report of audit, to the Governing Board setting forth his/her findings, together with his recommendations for improvement. That written report shall include all matters defined as "significant deficiencies and material weaknesses" in AU-C 265 of the. AICPA Professional Standards (Clarified). The Auditor shall file a copy of that For GAAS or Government Auditing Standards audits, if an auditor issues an AU-C $260 report, commonly referred to as Governance Letter," LGC staff does not require the report to be submitted unless the auditor cites significant findings or issues from the audit, as defined in AU-C $260.12-.14. This would include issues such as difficulties encountered during the audit, significant or unusual transactions, uncorrected misstatements, matters that are difficult or contentious reviewed with those charged with governance, and other significant matters. If matters identified during the audit were required to be reported as described in AU-C $260.12-.14 and were communicated in a method other than an AU-C $260 letter, the written  Audits in North Carolina" on the LGC's website for more information.  the group auditor in accordance with AU-6 $600.41 - $600.42.  explained in an attachment to this contract.  peer review analysis that may result in additional contractual requirements.  contract or in an amendment.  explanation oft the change shall be submitted to the Secretary of the LGC for approval.  report with the Secretary of the LGC.  documentation must be submitted.    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 11/2023  8. AllI local government and public authority contracts for audit or audit-related work require the approval oft the Secretary of the LGC. This includes annual or special audits, agreed upon procedures related to internal controls, bookkeeping or other assistance necessary to prepare the Governmental Unit's records for audit, financial statement preparation, any finance-related investigations, or any other audit- related work in the State of North Carolina. Approval is also required for the Alternative Compliance Examination expenditures as allowed by US Treasury. Approval is not required on audit contracts and invoices for  Engagement for auditing the Coronavirus State and Local Fiscal Recovery Funds system improvements and similar services of a non-auditing nature.  9. Invoices for services rendered under these contracts shall not be paid by the Governmental Unit(s) until the invoice has been approved by the Secretary oft the LGC. This also includes any progress billings [G.S. 159-34 and 115C-447). All invoices for audit work shall be submitted in PDF format to the Secretary oft the LGC for approval. the invoice marked approved' with approval date shall be returned to the. Auditor to present to the Governmental Unit(s) for payment. This paragraph is not applicable to contracts for audits 10. In consideration of the satisfactory performance of the provisions of this contract, the Governmental Unit(s) shall pay to the Auditor, upon approval by the Secretary oft the LGC if required, the fee, which includes any costs the Auditor may incur from work paper or peer reviews or any other quality assurance program required by third parties (federal and state grantor and oversight agencies or other organizations) as required under the Federal and State Single Audit Acts. This does not include fees for any pre-issuance reviews that may be required by the NC Association of CPAS (NCACPA) Peer Review Committee or NC State 11. If the Governmental Unit(s) has/have outstanding revenue bonds, the Auditor shall submit to LGC Staff, either in the notes to the audited financial statements or as a separate report, a calculation demonstrating compliance with the revenue bond rate covenant. Additionally, the. Auditor shall submit to LGC Staff simultaneously with the Governmental Unit's (Units') audited financial statements any other bond compliance statements or additional reports required by the authorizing bond documents, unless otherwise specified in the 12. After completing the audit, the Auditor shall submit to the Governing Board a written report of audit. This report shall include, but not be limited to, the following information: (a) Managements Discussion and Analysis, (b) the financial statements and notes of the Governmental Unit(s) and all of its component units prepared in accordance with GAAP, (c) supplementary information requested by the Governmental Unit(s) or required for full disclosure under the law, and (d) the Auditor's opinion on the material presented. The Auditor shall furnish the required number of copies of the report of audit to the Governing Board uponcompletion. 13. Ifthe audit firm is required by the NC State Board, the NCACPA Peer Review Committee, or the Secretary of the LGC to have a pre-issuance review of its audit work, there shall be a statement in the engagement letter indicating the pre-issuance review requirement. There also shall be a statement that the Governmental Unit(s) shall not be billed for the pre-issuance review. The pre-issuance review shall be performed prior to the completed audit being submitted to LGC Staff. The pre-issuance review report shall accompany the  of hospitals.  Board of CPA Examiners (see Item 13).  bond documents.  audit report upon submission to LGC Staff.  Page 3    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 11/2023  14. The Auditor shall submit the report of audit in PDF format to LGC Staff. For audits of units other than hospitals, the audit report should be submitted when (or prior to) submitting the final invoice for services rendered. The report of audit, as filed with the Secretary of the LGC, becomes a matter of public record for inspection, review and copy in the offices of the LGC by any interested parties. Any subsequent revisions to these reports shall be sent to the Secretary of the LGC. These audited financial statements, excluding the Auditors' opinion, may be used ini the preparation of official statements for debt offerings by municipal bond rating services to fulfill secondary market disclosure requirements oft the Securities and Exchange Commission and for other lawful purposes of the Governmental Unit(s) without requiring consent of the Auditor. If the LGC Staff determines that corrections need to be made to the Governmental Unit's (Units') financial statements and/ or the compliance section, those corrections shall be provided within three business days of notification unless 15. Should circumstances disclosed by the audit call for a more detailed investigation by the Auditor than necessary under ordinary circumstances, the Auditor shall inform the Governing Board in writing of the need for such additional investigation and the additional compensation required therefore. Upon approval by the Secretary of the LGC, this contract may be modified or amended to include the increased time, compensation, 16. Ifan approved contract needs to be modified or amended for any reason, the change shall be made in writing and pre-audited ift the change includes a change in audit fee (pre-audit requirement does not apply to hospitals). This amended contract shall be completed in full, including a written explanation of the change, signed and dated by all original parties to the contract. Its shall then be submitted to the Secretary of the LGC for approval. No change to the audit contract shall be effective unless approved by the Secretary of the LGC. 17. Ad copy of the engagement letter, issued by the Auditor and signed by both the Auditor and the Governmental Unit(s), shall be attached toi this contract, and except for fees, work, and terms not related to audit services, shall be incorporated by reference as iff fully set forth herein as part of this contract. In case of conflict between the terms of the engagement letter and the terms of this contract, the terms of this contract shall take precedence. Engagement letter terms that conflict with the contract are deemed to be void unless the conflicting terms of this contract are specifically deleted in Item 30 of this contract. Engagement letters containing 18. Special provisions should be limited. Please list any special provisions in an: attachment. 19. A separate contract should not be made for each division to be audited or report to be submitted. Ifa DPCU is subject to the audit requirements detailed in the Local Government Budget and Fiscal Control. Act and a separate audit report is issued, a separate audit contract is required. Ifa a separate report is not to be issued and the DPCU is included in the primary government audit, the DPCU shall be named along with the primary government ont this audit contract. DPCU Board approval date, signatures from the DPCU Board chairman and 20. The contract shall be executed, pre-audited (pre-audit requirement does not apply to hospitals), and physically signed by all parties including Governmental Unit(s) and the Auditor, then submitted in PDF format to 21. The contract is not valid until it is approved by the Secretary of the LGC. The staff of the LGC shall notify the Governmental Unit and Auditor of contract approval by email. The audit should not be started before the 22. Retention of Client Records: Auditors are subject to the NC State Board of CPA Examiners' Retention of Client Records Rule 21 NCAC 08N .0305 as it relates to the provision of audit and other attest services, as well as non-attest services. Clients and former clients should be familiar with the requirements of this rule prior to  another deadline is agreed to by LGC Staff.  or both as may be agreed upon by the Governing Board and the Auditor.  indemnification clauses shall not be accepted by LGC Staff.  finance officer also shall be included on this contract.  the Secretary oft the LGC. contract is approved.  requesting the return of records.  Page 4    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 11/2023  23. This contract may be terminated at any time by mutual consent and agreement of the Governmental Unit(s) and the Auditor, provided that (a) the consent to terminate is in writing and signed by both parties, (b) the parties have agreed on the fee amount which shall be paid to the Auditor (if applicable), and (c) no 24. The Governmental Unit's (Units') failure or forbearance to enforce, or waiver of, any right or an event of breach or default on one occasion or instance shall not constitute the waiver ofs such right, breach or 25. There are no other agreements between the parties hereto and no other agreements relative hereto that shall be enforceable unless entered into in accordance with the procedure set out herein and approved 26. E-Verify. Auditor shall comply with the requirements of NCGS Chapter 64 Article 2. Further, if Auditor utilizes any subcontractor(s), Auditor shall require such subcontractor(s) to comply with the requirements of 27. Applicable to audits with fiscal year ends of June 30, 2020 and later. For all non-attest services, the Auditor shall adhere to the independence rules of the AICPA Professional Code of Conduct and Government. Auditing Standards, 2018 Revision (as applicable). Financial statement preparation assistance shall be deemed a 'significant threat" requiring the Auditor to apply safeguards sufficient to reduce the threat to an acceptable level. If the Auditor cannot reduce the threats to an acceptable level, the Auditor cannot complete the audit. If the Auditor is able to reduce the threats to an acceptable level, the documentation of this determination, including the safeguards applied, must be included in the audit workpapers. All non-attest service(s) being performed by the Auditor that are necessary to perform the audit must be identified and included in this contract. The Governmental Unit shall designate an individual with the suitable skills, knowledge, and/or experience (SKE) necessary to oversee the services and accept responsibility for the results of the services performed. If the Auditor is able toi identify an individual with the appropriate SKE, s/he must document and include in the audit workpapers how he/she reached that conclusion. Ift the Auditor determines that an individual with the appropriate SKE cannot be identified, the Auditor cannot perform both the non-attest service(s) and the audit. See "Fees for Audit Services" page of this contract to disclose the 28. Applicable to audits with fiscal year ends of. June 30, 2021 and later. The auditor shall present the audited financial statements including any compliance reports to the government unit's governing body or audit committee in an official meeting in open session as soon as the audited financial statements are available but not later than 45 days after the submission of the audit report to the Secretary. The auditor's presentation to the government unit's governing body or audit committee shall include: a) the description of each finding, including all material weaknesses and significant deficiencies, as found by the auditor, and any other issues related to thei internal controls or fiscal health oft the government unit as disclosed in the management letter, the Single Audit or Yellow Book reports, or any other communications from the auditor regarding internal controls as required by current auditing c) the values of Financial Performance Indicators based on information presented in the audited d) notification tot the governing body that the governing body shall develop a "Response to the Auditor's Findings, Recommendations, and Fiscal Matters," if required under 20 NCAC 03 .0508. 29. Information based on the audited financial statements shall be submitted to the Secretary for the purpose ofi identifying Financial Performance Indicators and Financial Performance Indicators of Concern. See 20  termination shall be effective until approved in writing by the Secretary of the LGC.  default on any subsequent occasion or instance.  by the Secretary of the LGC. NCGS Chapter 64, Article 2.  person identified as having the appropriate SKE for the Governmental Unit.  standards set by the Accounting Standards Board or its successor;  b) the status of the prior year audit findings; financial statements; and  NCAC 03 .0502(c)(6).  Page 5    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 11/2023  30. All of the above paragraphs are understood and shall apply tot this contract, except thei following  numbered paragraphs shall be deleted (See Item 171 for clarification).  31. The process for submitting contracts, audit reports and invoices is subject to change. Auditors and units should use the submission process and instructions ine effect at the time of submission. Refer to the N.C. Department of State Treasurer website at https:l/www.nctreasurer.comistate-and-local- govemment-finance-dwvnocar-govemmenkcommisionsummiting-youraudit to the email addresses provided on the signature pages that follow.  32. All communications regarding audit contract requests for modification or official approvals will be sent 33. Modifications to the language and terms contained int this contract form (LGC-205) are not allowed.  Page 6    LGC-205  CONTRACT TO AUDIT ACCOUNTS FEES FOR AUDIT SERVICES  Rev. 11/2023  1. For all non-attest services, the Auditor shall adhere to the independence rules of the AICPA Professional Code of Conduct (as applicable) and Government Auditing Standards, 2018 Revision. Refer to Item 27 of this contract for specific requirements. The following information must be provided by the Auditor; contracts Financial statements were prepared by: Auditor Governmental Unit Third Party If applicable: Individual at Governmental Unit designated to have the suitable skills, knowledge, and/or experience (SKE) necessary to oversee the non-attest services and accept responsibility for the  presented to the LGC without this information will be not be approved.  results of these services: Name: Pamela Stone  Title and Unit/Company:  Email Address:  Finance Director, City of Mount Airy psionc@moumtairyorg  ORI Not Applicable (Identification of SKE Individual on the LGC-205 Contract. is nota applicable for  GAAS-only audits ora audits with FYEs prior to June: 30, 2020.)  2. Fees may not be included in this contract for work performed on Annual Financial Information Reports (AFIRs), Form 990s, or other services not associated with audit fees and costs. Such fees may be included in the engagement letter but may not be included in this contract or in any invoices requiring approval of the LGC. See 3. The audit fee information included in the table below for both the Primary Government Fees and the DPCU Fees (if applicable) should be reported as a specific dollar amount of audit fees for the year under this contract. If any language other than an amount is included here, the contract will be returned to the audit form for correction. 4. Prior to the submission of the completed audited financial report and applicable compliance reports subject to this contract, ort to an amendment to this contract (if required) the Auditor may submit interim invoices for approval for services rendered under this contract to the Secretary oft the LGC, not to exceed 75% of the billings for the unit's last annual audit that was submitted to the Secretary oft the LGC. Alli invoices for services rendered in an audit engagement as defined in 20 NCAC .0503 shall be submitted to the Commission for approval before any payment is made. Payment before approval is a violation of law. (This paragraph not applicable to contracts  Items 8 and 131 for details on other allowable and excluded fees.  and invoices associated with audits of hospitals).  Primary Government Unit  City of Mount Airy, NC  Audit Fee (financial and compliance if applicable) $ 37,130 ($34,000 audit + $3,130 single audit)  Fee per Major Program (ifr not included above) $ Financial Statement Preparation (incl. notes and RSI)'s All Other Non-Attest Services TOTAL. AMOUNT NOT TO EXCEED Discretely Presented Component Unit Audit Fee (financial and compliance if applicable) $ Fee per Major Program (if not included above) Financial Statement Preparation (incl. notes and RSI! $ AIl Other Non-Attest Services TOTAL. AMOUNT NOT TO EXCEED  Additional Fees Not Included Above (if applicable):  $ $37,130 N/A $  Additional Fees Not Included Above (if applicable):  $ $ Page 7    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 11/2023  SIGNATURE PAGE AUDIT FIRM  Audit Firm*  Martin Starnes & Associates, CPAs, P.A.  Authorized Firm Representative (typed or printed)* Signature"  Amber Y. McGhinnis Date* 02/01/24  Onlay MSmi  Email Address' ameghimnis@msa.cpa  GOVERNMENTAL UNIT  Governmental Unit" City ofl Mount Airy, NC Date Goveming Board Approved Audit Contract* (Enter date in box to right) Mayor/Chairperson (typed or printed)* Jon Cawley, Mayor Date  Signature* Email Address* cawlty@mountairy.org  Chair of Audit Committee (typed or printed, or "NA") Signature  N/A Date  Email Address  GOVERNMENTAL UNIT - PRE-AUDIT CERTIFICATE  Required by G.S. 159-28(a1) or G.S. 115C-441(a1). Not applicable to hospital contracts. This instrument has been pre-audited in the manner required by The Local Govemment. Budget and Fiscal  Control Act or by the School Budget and Fiscal Control Act.  Sum Obligated by This Transaction: Pamela M. Stone, Finance Director Date of Pre-Audit Certificate*  $ 37,130  Primary Governmental Unit Finance Officer* (typedo orp printed Signature"  Email Address* pstone@mountaiy,org  Page 8    LGC-205  CONTRACT TO AUDIT ACCOUNTS SIGNATURE PAGE - DPCU (complete only if applicable)  Rev. 11/2023  DISCRETELY PRESENTED COMPONENT UNIT  DPCU* N/A  Date DPCU Governing Board Approved Audit Contract* (Enter date in box to right) DPCU Chairperson (typed or printed)*  Signature* Email Address*  Date*  Chair of Audit Committee (typed or printed, or "NA") Signature  N/A Date  Email Address  DPCU - PRE-AUDIT CERTIFICATE  Required by G.S. 159-28(a1) or G.S. 115C-441(a1). Not applicable to hospital contracts.  This instrument has been pre-audited. in the manner, required by The Local Govemment Budget and Fiscal  Control Act or by the School Budget and Fiscal Control Act.  Sum Obligated by this Transaction: DPCU Finance Officer (typed or printed)* Date of Pre-Audit Certificate*  $ Signature* Email Address*  N/A  Remember to print this form, and obtain all required signatures prior to submission.  PRINT  Page 9    KWH  Koonce, Wootem & Haywood, LLP  CERTREDPUBUC/ ACCOUNTANTS  Report on thel Firm's System of Quality Control  To the Shareholders of Martin Starnes & Associates, CPAS, P.A. and the Peer Review Committee, Coastal Peer Review, Inc.  We have reviewed the system of quality control for the accounting and auditing practice of] Martin Starnes & Associates, CPAs, P.A. (thet firm) ine effect for the year ended December31,2020. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Asummary oft the nature, objectives, scope, limitations of, and the procedures performed in a System Review as described in the Standards may be found at wwacpadpaummey. The summary also includes an explanation of how engagements identified as not performed or reported in conformity with applicable professional standards, if any, are  Institute of Certified Public Accountants (Standards).  evaluated by aj peer reviewer to determine aj peer review rating.  Firm's Responsibility  The firmi is responsible for designing a system ofquality control and complying with itt to provide the: firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. The firmi is also responsible for evaluating actions to promptly remediate engagements deemed as not performed or reported in conformity with professional standards, when appropriate, and for remediating weaknesses in its system ofquality control,  ifany.  Peer Reviewer's Responsibility therewith based on our review. Required Selections and Considerations  Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance  Engagements selected for review included engagements performed under Government Auditing Standards, including As part. of our peer review, we considered reviews by regulatory entities as communicated by the firm, ifa applicable, in  compliance audits under the Single Audit Act and an audit of an employee benefit plan.  determining the nature and extent of our procedures.  Opinion  In our opinion, the system of quality control for the accounting and auditing practice of Martin Starnes & Associates, CPAS, P.A. in effect for the year ended December 31,2020, has beèn suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency(ies) or fail. Martin Starnes & Associates, CPAs,  P.A. has received aj peer review rating of pass.  Koncei Wolen t Hoyrdy LLP  Koonce, Wooten & Haywood, LLP  May 4, 2021 Raleigh 4060 Barrett Drive Post Office Box 17806 Raleigh. North Carolina 27619 9197 7829 9265 9197 7838937FAX  Durham 3500 Westgate Drive Suite: 203 Durham, North Carolina: 27707 919 3542 2584 9194898183F FAX  Pittsboro 579) West Street Post Office Box: 1399 Pittsboro, North Carolina: 27312 9195 5426 6000 919 5425 5764F FAX  Smithfield 212 East Church Street Post Office Box: 2348 Smithfield, North Carolina 27577 919 9341 1121 919 934: 1217F FAX    RESOLUTION NUMBER 2024-054  A RESOLUTION Approval of Tax Releases  WHEREAS, al list oft taxes to bei released has been submitted by the Revenue Collections Supervisor inl her capacity ofTax Collector for the City ofl Mount Airy Finance WHEREAS, North Carolina General Statute 105-373 provides for settlement of such WHEREAS North Carolina General Statute 105-381 provides for release or refund of NOW THEREFORE BE IT RESOLVED BY THE CITY OF MOUNT AIRY BOARD Section 1. Said taxes be released or refunded in accordance with said statutes for the Section 2. This Resolution shall become effective upon approval by the Board of  Department; and taxes; and taxes; and  OF COMISSIONERS MEETING IN OPEN SESSION THAT:  reasons stated on the attached list.  Commissioners of the City of Mount Airy.  Adopted this 7th day of March, 2024.  Jon Cawley, Mayor  ATTEST:  Melissa N. Brame, City Clerk    8.3.8    RESOLUTION: NUMBER 2024-055  RESOLUTION SETTINGI PUBLICHEARING: REGARDING REQUEST' TO: REZONE: PROPERTY  LOCATED AT215. JONES SCHOOL ROAD  WHEREAS, the City of] Mount Airy has been petitioned by C. Marie Nicholson to rezone 8.53 acres located at 215. Jones School Road from R-6 (General Residential) to B-3(Neighborhood  Business); and  WHEREAS, the Tax Identification Number for said property is 5021-12-85-9833; and WHEREAS, the Planning Board ofthe City of Mount Airy has recommended approval of NOW,THEREFORE BE: IT RESOLVED BY THE CITY OF MOUNT AIRY BOARD  the request to the Board ofCommissioners:  OFCOMMIESIONERS MEETING: IN OPEN SESSION THAT:  Section 1. That a public hearing be scheduled for Thursday, March 21, 2024 at 6:00 pm to Section 2. That notice of the public hearing shall be published in the Mount Airy News, a  hear public comments on the above mention request.  newspaper having general circulation in the City of Mount Airy, at least ten (10)  days prior to the date oft the public hearing.  Section 3. This resolution shall become effective upon approval. Approved and adopted this the 7th day ofl March, 2024.  Jon Cawley, Mayor  ATTEST:  Melissa N. Brame, City Clerk    City of Mount Airy Staff Report February 27, 2024 To: From: Subject:  THECIT  March 7, 2024 Board of Commissioners Meeting  CAROD  Mayor Cawley & Board of Commissioners Jeannie Studnicki City Planner 2024-REZ-01 (R-61 to B-3)  A. ACTION REQUESTED BY THE BOARD OF COMMISSIONERS  Motion to set a public hearing for March 21, 2024 to hear comments on the request to rezone  the subject parcel from R-6toE B-3. B. REQUIRED VOTES TO PASS ACTIONS  Ar majority vote is required to pass the requested actions.  C. BACKGROUND Applicant:  C. Marie Nicholson 148 Ceasar Lane Mount Airy, NC: 27030 of Surry County 215. Jones! School Road Mount Airy, NC: 27030 215. Jones! School Road 5021-12-85-9833 8.53 Acres Historic. J.J.. Jones School R-6 (General Residential) B-3/Neighborhood. Business)  Property Owner(s):  African American Historical & Genealogical Society  Physical Address(s): Property PIN(s): Zoning Area: Current Uses: Current Zoning District: Proposed Zoning District:  2024-REZ-01    D. PLANNING BOARD REVIEW  The Planning Board reviewed the request to rezone this parcel from (R-6 to B-3) on February 27, 2024. The Planning Board found that the proposed zoning (B-3) isc consistent with the future land use recommendations in the City of Mount Airy Comprehensive Plan. The Planning Board also approved rezoning 213 Jones School Road simultaneously to ensure campus consistency. The  Planning Board voted (8-0) to recommend approval of the amendments.  E.A ATTACHMENT 1.A Application 2. Zoning Map  2024-REZ-01 2    HE  CITY OF MOUNT AIRV  300 S. Main Street Mount Airy, NC27030 P:( 036786320/Epamaing@mountairyore  Rezoning Application  Case # 2024- RE2-o1 Permit # PL 21-00015  Project Information  Date ofA Application 1/9-2024  Horic"  Name of Project AAHG-S of Sury yfautyi Jones Schol Rezening Address 216 Snis-SchalRad Property Size 8.53AC  Tax Parcel Number(s), 503113859833 Current Zoning District R-6 Overlay District(s). Contact Information Cmarkc Nicho/Son Applidant H8fzasar Lant Address mt. Airy NE 27030 City, State/Zip Code 330-'793- - 6058 Telephone narinice! hetmail.coi Email address Sgatigoshhn  Proposed Zoning District B-3  AbnanAimeran thrmlGmigal  PropertyOwner Society c 215 Jons Address nt. Airy NC 77030 City, State, JipCode 336 415- 4363- Telephone Emaila aahgurychynee address Charit gichelaen Signature (requirgd)  Coutyr  7477  gnailcun  Description of Request  A) Briefly explain the nature oft this request.  This raguzst is neessjary Av ailww tur site tu offer Spacefir A Smait busmess inculatr, gift sheps iccck arts and cnafts Sales, bookstore library caieafima ank day care  oppechunibles.  Page lof2    B) Provide as statement regarding the consistency oft this request with city plans and the Wcabe have dusire to hserpoxats A Cuimtnny gantan hep Jh Commny learhyh crft aR feR-huserhy M.We hupe swll Emhanes visitahw hn wr cihy and tarch Ha ialu our Provide a statement regarding the reasonableness of the rezoning request and conditions of approval. (For Conditional Use Rezoning)  surrounding land uses.  pnityr  any proposed  Notice and Hearing Reuirements  All applications for rezoning must be reviewed by the City of Mount Airy Planning Board before proceeding to the Board of Commissioners for public hearing and decision. The Planning Board will review applications for rezoning at its next mecting following submission of the application and filing fee if the application is submitted at least thirly days in advance of the regular meeting date. Following review and recommendation by the Planning Board, the matter will be forwarded to the Board of Commissioners. Following the receipt of notification ofa pending rezoning, the Board of Commissioners will schedule a public hearing for fhe next available meeting that allows for sufficient time for the City to: mail and publish the statutorily required notices. All applications for rezoning must be published in the newspaper once a week for two consecutive weeks and all adjoining property owners must receive a mailed notice at least ien days prior to the hearing.  Meeting Dates  Planning Board Meeting Date: FEBEARY 26 Zoz4 Planning Board Decision: Approved (8-0) Board ofCommissioners Meeting Date: MAREH 21 2024 Board of Commissioners Decision:  General Rezoning Fee: $600 Conditional District Rezoning Fee: $600  Page 2of2    bo  EILOTVIEW  SONIIS  5  0) a  o 9  @  DMANS  a    CITY EMPLOYEE RECOGNITIONS  Name: Chris Wallace Dan Speight  Job' Title: WWTP Operator Engineering TechI  Years of Service: 30 Years 25 Years    MEMORANDUM To: Mayor and Board ofCommissioners From: Nickil Brame Date: March 4,2024 Re: Resolution Number 2024-056  All:  The City requested demolition bids for the house located at 412 Franklin Street. The deadline to receive these bids is March 4, 2024 at 5:00 pm. Once bids are received and staff makes a recommendation, I will prepare the resolution to award the bid and send it to you for review prior  to1 thel March 7, 2024 Board Meeting.  Thanks, and if you have any questions, please let us know.    RESOLUTION NUMBER 2024-059  RESOLUTION. APPROVING AMENDED POLICYO ONLEVEL OF FUNDI BALANCE  WHEREAS, the City of Mount Airy Board of Commissioners previously approved a WHEREAS, the Board of Commissioners requested City staff to update the policy at NOW,THEREFORE BE: IT RESOLVED BY THE CITY OF MOUNT AIRY BOARD  Policy on Level of Fund Balance; and  their February 14, 2024 Strategic Planning Meeting:  OF COMMISSIONERS MEETING IN OPEN SESSIONTHAT:  Section 1. The Board of Commissioners does hereby approve the. Amended Policy on Level of  Fund Balance.  Section 2.  This resolution shall become effective upon approval.  Approved and adopted this the 7th day of March, 2024.  Jon Cawley, Mayor  ATTEST:  Melissa N. Brame, City Clerk    Cityo ofl Mount Airy General Fund Policy onl Level of Fund Balance March 7, 2024  PURPOSE: This policy will codify the appropriate level offund balance to ber maintained in the General Fund oft the City. The need fort fund balance includesar number ofe elements, including: Meeting statutory and Local Government Commission direction on a balanced budget and Ability to meet cash flow needs of the General Fund, consistent with the receipt of revenues, primarily Ad' Valorem Taxes and SalesTaxes, and the expenditure of funds to meet operational needs. Local governments in North Carolina cannot borrow to meet cash flow or revenue collection needs and therefor, cash flow needs must be accommodated by retention of fund Maintaining financial strength consistent withr rating agency criteria, providing the ability oft the Sound financial practice consistent with well managed North Carolina units of local government Accommodating future needs based upon economic change and one-time extraordinary  maintenance of appropriatel level offund balance  balance.  City to be rated at sound levels  expenditures  POLICYE RANGE: Asai means to manage levels off fund balance during both: sound community economics and economic downturns, level off fund balance could appropriately operate inar range. The range for the  City will be:  6M dollars or 45%, whichever is greater, of actual expenditures for the year of operation. For purposes ofc defining the fund balance category, consistent with Generally Accepted Accounting Principles (GAAP), for calculating the level of fund balance, Unassigned Fund Balance willl be used. Unassigned is contained as a categoryi in the City's annual Comprehensive Annual Financial Report (CAFR). Calculation of level off fund balance willl be derived byt the respective ACFR and consistof: Unassigned Fund Balance divided by annual expenditures Annual expenditures: and transfers (excluding yearendf fund balance transfer) willo consist of all those defined byt the ACFR as current year Disposition/ management off fund balance outside the range willl be defined ini this policy DISPOSITION OF FUND BALANCE OUTSIDE the POLICY RANGE: Consistent with sound financial management the retention off fund balance int the range is essential and willl be managed as follows upon  receipt of the annual ACFR:  Fund balance that exceeds $6M or 45%, whichever is greater, as calculated by thet formula, will be separated and transferred to the Capital Investment Fund for capital, outside agency funding and one--time expenditures! based upon Board action. Fund balancel level thati is less than $6M or 45%, as calculated byt thei formula, willl be restored to defined level withint three successivet fiscaly years by actions oft the City Board.