Board of Aldermen Budget Work Session Tuesday, February 27, 2024 MINUTES  The Town of] North Topsail Beach Board of Aldermen held a budget work session on February Board members present: Mayor Joann McDermon, Mayor Pro Tem Benson, Aldermen Connie  27,2024. A quorum of the board was present.  Pletl, Richard Grant, Tom Leonard and Laura Olszewski.  Board members absent: None  Staff present: Town Manager Alice Derian, ITJ Director Ricky Schwisow, Finance Officer Caitlin Elliott, Police ChiefYounginer, Fire Chief Soward, Public Works Supervisor Al Cablay and  Interim Town Clerk Nancy Avery.  Call to order  Mayor McDermon called the budget work session to order at 8:30 am.  Approval of Agenda  Motion - Alderman Olszewski motioned to adopt the agenda as presented; seconded by Mayor  Pro Tem Benson; unanimously approved.  New Business  A. Proposed budget overview and economic outlook  Manager Derian stated:  The Town conservatively budgets to maintain service levels delivered to residents and visitors while strategically increasing or expanding services as growth and demand warrant and we all know that we. have experienced a significant amount of growth here in North Topsail Beach in the past couple of years. Our General Fund revenue stream is narrow with the majority comprised of ad valorem and local option sales use tax that makes up approximately 80% of the total projected. revenues that you will see this morning. Projected expenses were derived: from Department Heads who are. here this morning and who will be presenting their department requests throughout today. In reviewing historical data, Caitlin (Finance Officer Elliott) andI I look at the last three-year actuals and recognize the external economic conditions that are prevalent, such as inflation. Town administration remains focused on pursuing newi revenue opportunities through federal and state grants as well as county grants that we submit for as well as unconventional sources such as selling Town merchandise and acquiring sponsorship for Town events that you have seen a little bit oft this fiscal year. We will continue to expand on The priorities that you see on the slide are established for the preparation of the 24-25 budget as  those endeavors. follows:  February 27, 2024    that will be used to offset the debt service for the special obligation bonds for the Phase Five beach project that we are getting ready to wrap up this April. Our payment is just under $2,000,000d sO that will assist in that repayment. This is much more than what was requested last year. We were allocated $200,000 last year. Ib have talked with the county manager already and If feel comfortable with upping that request. He understands the justification for that. Whether that will get approved or not I cannot say for certain or not, but I think it is well  justified and will bei in our application.  Alderman Grant asked what is the NC Emergency Management money?  Manager Derian said it is state grant money that was allocated through the Disaster Mitigation Also we. have $299,460 that will be applied for vitex removal. That is something we have been discussing for the last couple of years. Wel had it in the budget for this year but the decision was made to pause until these grant monies were released and to also have the Towns of SurfCity and Topsail Beach get on board, SO the idea is we all submit one application sO that we are eradicating the vitex all at one time because it is SO invasive and spreads. Those grant applications I spoke of are pending completion and will be submitted this week and the county We also accounted for a conservative 5% increase in occupancy tax and a 10% increase forl local sales and use tax. The General Fund total draft budget is a little over $7.7 million dollars. Alderman Grant stated that is over last year's budget and not actuals, correct?  ReliefFund.  grant will be submitted next week.  Manager Derian said yes that is correct.  The General Fund expenses have been drafted in the amount of $7.1 million dollars on current needs and of course recognizing inflation. Personnel costs will account for over half oft the General Fund as they historically do. Please be aware that salary figures overall are still int the process of being calculated. Those will be large changes that are mentioned throughout the meeting. Wel have the current ones plugged in but just be aware the proposed salary increases The draft 24-25 budget reflects an overall decrease of 5.46% or $414,279 under fiscal year 23-24 total operating budget and the reason why we present this is unbalanced is to give the Board the opportunity to get a snapshot of where we are at right now and provide input sO that we can take your priorities and goals and then incorporate them for the next budget workshop. Alderman Grant said before you leave that though when you are talking about reduction, there is no contingency in the budget right now and there is no increase in salary costs, right? Manager Derian said that is correct. The main point is that we are getting feedback from the  will be reflected prior to the March budget workshop meeting.  Board sO we can incorporate that into the next meeting.  February 27, 2024  3    Public Works Superintendent Cablay said his budget is the same with some Capital Improvement Project carryover items ofa a new town entry sign, purchase of a crack sealer for pavement Finance Officer Elliott said in the Streets budget, also part ofPublic Works, there is a proposed Alderman Olszewski asked why the mosquito control line item is dropping from $4,000 to Manager Derian said this service has been historically offered. It requires use of chemicals and pesticides we are. not trained for and shei is not sure we should continue to provide this.  restoration and refurbishment ofboth kayak launches.  increase in line items for training, supplies, uniforms and software.  $3,000.  Board members discussed the history ofn mosquito spraying.  Consensus Continue discussion on whether to keep spraying for mosquitos at the next budget Public Buildings Finance Officer Elliott said the projected budget for Public Buildings includes ac decrease in utilities and grounds and repair line items, an increase in the furniture line items for the new Fire Station, and $33,500 for. new security cameras tol bei installed at the park, Town Hall boardroom and new. Fire station. $120,000 Capital Infrastructure items are $100,000 for Alderman Olszewski said ift the cameras are ITI based and the cost is in the Public Works budget, Alderman Grant said the Public Works building is the next to look at. The trend has been to patch which ends up throwing good money after bad after a building gets too old. Alderman Olszewski asked why the telephone line item increased and for which ones, Finance Officer Elliott responded that a fax line has been added for the police department, a phone has been added for the elevator, desk phones and cameras on the bridge and cell phone Alderman Olszewski said she want the details because there might be an opportunity to switch to Special Events - Finance Officer Elliott said $10,000 has been budgeted for Special Events, The Board discussed items in this line item such as the Christmas tree lighting and decorations.  work session.  erosion at Town Hall and $20,000.  she would like it pulled out and put in the IT budget.  costs are also included. ac different provider.  which is the same amount as this current year.  Consensus- leave the amount at $10,000.  Break Mayor McDermon called for al break at 9:48 am  February 27, 2024  5    ChiefYounginer replied it is hiring services for the State'sr required psychological and physical Alderman Leonard asked ifhe is asking for both a Dodge Charger and a truck, or only a truck. Last year, we bought ahead on the Chargers, correct? Last March we came in with al budget Chief Younginer responded he is asking only for one truck. He has two Chargers he plans to sell this year. He will hold onto two Chargers to use for travel to training and as a spare for the Board members discussed concerns about the Flock camera with the following highlights: Alderman Pletl -Ia am uncomfortable with the Flock system and I am not sure we: need it for our town or that it is a good way to spend taxpayer dollars. Mass surveillance puts the Town in a negative light. Ifs Surf City has it, Id do not think we: need it. The controversy includes the ACLU and they have really doubled down on saying that iti is a mass surveillance system. It allows federal and local law enforcement to access the comings and goings of vehicles even in the smallest oft towns. It think it is something that can be done by pplice patrols with positive police engagement with residents, property owners and visitors. Our police are: really great. As far as helping with missing persons, Amber Alerts, and people entering the town and stuff, we. have only the two points of fentry. Ihave complete confidence in our police force. I do not know that Manager Derian - We talked about having a policy tied to this as to what we are doing and how Mayor Pro Tem Benson I agree with Connie (Alderman Plet!) and want to think about some Alderman Leonard -Ido not like the optics ofit. We have only two entrances. I would rather see officers driving around and engaging with the citizens. This reinforces that the officers are there to give help when needed. Ido not see myself supporting this. The Flock website says they are the fix for your crime rate. I do not think we have a crime problem. Wel have a reputation as a family friendly beach town, not welcome to North Topsail Beach smile for the cameras as you Mayor McDermon -I do not think cameras replace officers. This would be useful for amber alerts and breaking and entering. My phone already tracks me, We have to take into consideration all the growth in Sneads Ferry and around us. Ido: not have an issue with itifiti is something that we think would be ofbenefit, because Ia am thinking oft those situations that hopefully do: not occur. We have had no missing children in our town. We have had breaking and entering and theft. Iti is minimal because we: are such a small town with a good-sized police force. I do not think these take the place of each other. Ido agree with considering to mull it  evaluations.  amendment request for three additional chargers.  canine.  we need something like Flock. long data is stored.  more before we go this way.  drive by.  over. We do not have to make a decision today.  February 27,2024  7    remaining the same. We do have a slight increase in our vehicle maintenance and repair. And also in advertising as well. We increased our town merchandise expense to purchase new merchandise. Contract services has been increased. This is used for temporary staff or contracted Governing Body. Finance Officer Elliott stated a lot oft these costs are also the same. Aldermen receive $500 each per month. Town Attorney costs are here also in the professional services line item. We. have increased that this year. Wel have $45,000 slated for the Carters to keep them on retainer. We left the donations to other agencies blank SO you can discuss that. Alderman Grant stated we have had a number of very complicated legal issues that are: more than what a town attorney normally handles. We have talked in general terms about litigation, contracting and things like that. Iwould ask Alice (Manager Derian) to give a good thought to maybe splitting the town attorney function. Wel have issues related to contracts, significant contracts, and the beach plan, and all those things coming. Ifwe do not have that stuff done the correct way, it could be ai real problem for us. Think about whether we. need toi increase that. Alderman Olszewski said we have asked the town attorney to now be present at the planning meetings. Wei need to make sure the hours are accounted for and that we look at his actuals for last year for an appropriate increase for the increased meeting attendance as well as aj percentage, Manager Derian said she has asked the town attorney for specifics as far as what the dollar amount will be for Planning Board attendance, as well as any potential increase that he would be requesting. She has not received anything but included a buffer ini there for planning board and extra legal expenses, because that has been expressed as an interest by the Board toj potentially Outside. Agency donations - Finance Officer Elliott said last year we accounted for $2,500 to the Chamber of Commerce, $1,000 to the. Jazz Festival and $2,500 to the Topsail Island Shoreline 1.Chamber- - Manager Derian said the Chamber requested a $3,000 financial commitment this  services to: fill ini for staff.  tol be conservative.  bring in other legal services,  Protection Committee (TISPC) beach clean initiative.  year.  Board members discussed whether to fund the requested $3,000 to the Chamber. Consensus Keep $2,500 as a placeholder: now and discuss further at the next budget work 2. TISPC -Manager Derian said there was confusion about the amount the TISPC was requesting Consensus - Mayor Pro Tem Benson toj provide a breakdown at the next budget work session. 3. Ocean City Jazz Festival - Manager Derian said we. have aj request that she briefed the Board on back in December, from Ocean City Jazz Festival. They are requesting that we continue to  session.  due to the way the requested was worded.  February 27, 2024  9    H. Discussion on prioritization ofneeds versus available funds and goals  Mayor McDermon - I added this item to make sure that the Board's vision of goals and what we want to accomplish this year matches up with what our budget is tracking towards. And from what I have heard I did not hear anything different. I want to go through what I think is important and then we all can weigh in. Iwant to: make sure we budget to continue moving forward with the beach plan that Chris Gibson (engineer) outlined. For us, Ithink that is our best option at getting sand everywhere on the beach. Alice (manager) had: mentioned the bike lane and where we are with that, and I know that is a constant push. I appreciate you continuing to follow up because at this point, we just do not even know ifwe can doi it or not yet. We still need the camera feedback tol know if we can do al little bit or a lot. But] I think that that is a priority to at least know what we can and cannot do. No tax increase. We talked about this last year. We certainly want to try and make sure that everything that we have outlined fits in with our existing fund allocation. The fire station certainly has started and I cannot wait to see that actually break ground, because that is really exciting for us. And the last thing II had, and Iknow it is on our capital needs outline for the next five years. We have not really talked about it much. Ido not know iftherei is a way to work it in somewhere. But we really need to budget for offsite land for an Emergency Operations Center (EOC). And we. have talked about it, we. have some opportunities, we. have had other things that have jumped up that have been critical in nature. So Iknow we did not talk about that much today. I would like tol kind of keep that in the back ofc our head as we: move through this budget process. Because if we do have a big storm, you know, we arel kind ofstuck with the middle school, or whoever will fit us in. AndIk know you have aj plan for where we can go. But it would be nice for it to be ours. I was thinking we could go around Alderman Pletl -Ihad al lot to say and you covered most ofit. Cutting out everything you said, my goal for this upcoming budget as with every budget, is to be a good steward of the taxpayers money and not raise taxes this year. We talked about it last year, and we are really in these hard economic times. We are really being very conscientious. My priorities, in addition to what you said are the beach, public safety, town services and good environmental practices, whichIreally appreciate what this Town has been doing. Make sure that environmentally we are doing well. When it comes to budgets, there are always wants and needs. And although the line between the two is sometimes blurred, we must take care oft the needs and delay many of the wants. The economy has not been kind to a lot of people and they are feeling the hurt financially every time they go to the grocery store, put gas in their vehicles, pay their bills, and on and on. Ia am really pleased with this budget meeting sO far. Ithink we are doing well. Ithink we are: not taking too Alderman Leonard -Ihavej just a few things to add and reinforce; one which is no tax increase, ensure the best use of our taxpayers' funds again for the reason about the economy as stated and you know from a personal perspective, every one of my insurance policies that Ihave in North Carolina for houses and cars went up twenty percent (20%). On this past renewal, with the exception of the National Flood Insurance Plan (NFIP). Iv want to ensure the best use of our  the room,  long either.  taxpayers' money. And Iwill just leave it at that.  February 27, 2024 11    Adjournment  Motion - Alderman Leonard motioned to adjourn at 12:15 pm; seconded by Alderman Pletl;  unanimously approved.  gonta7 741 MasaE Joann McDermon, Mayor  ATTEST:  Nancy Aver Dabs  February 27,2024 13    Totor f 3  NORTH TOPSAIL BEACH FOUNDED IN 1990 Peles ZangniBnaty NORTH CAROLINA  Fiscal Year 2024-2 2025 Draft Budget    S  3  $ s S 3 S S S S S S $3 S    - S S 1    S   www w    S  S  -    5  DC 0 8088 008 8888 888858 C  3N S S S 3 3 3 3 S S S  s S  10  1  - S S S $S S S S S S    888 88 u  S 1 3 S S S S S 3 S S S  uw S $S v v    - 3 3  1  -    3 3 3  - unww  wv s    36  3S    S S 3 S  S  w    3  S S 3 S S S 3  1 3 3 3  -a  $ $ S S  S  -    3 3  S      3  1    v S S  oow     o m 3  S  -  S  S - -  S  -    -