TOWN OF STOKESDALE 8325 Angel-Pardue Road Stokesdale, NC27357 JUNE 30, 2020 AT 4:00PM via ZOOM FOR1 THE GENERAL FUND AND WATER ENTERPRISE  SPECIAL CALLED MEETING: ADOPT1 THE 2019- 2020 BUDGET AMENDMENT ORDINANCES  Attendance: Mayor Flynt, Thearon Hooks, Derek Foy, Jim Rigsbee, Jimmy Alisa Houk, Accountant Kim, Thacker, Town Attorney Tom Medlin Mayor Flynt Called the meeting to order at 4:00PM meeting. Mayor Flynt agreed to do SO.  Clerk  Landreth,  Approve the Agenda: Jimmy Landreth asked to add a Citizens comment period at the end Mayor Flynt asked Alisa Houk as the Budget Officer to present the amendments:  of  GENERAL FUND BUDGET ORDINANCE AMENDMENTS  Effective. June 30, 2020  BEI IT ORDAINED by the Governing Board oft the Town of Stokesdale, North Carolina,  following amendments be made to the annual budget ordinance for the fiscal 2020: Section 1: To amend the General Fund, expenditures for  that the  year ending. June 30,  Expense:  Decrease Increase  Total $298,000.00 $142,351.80 $42,500.00 $24,500.00 3 3400.00 $ 7500.00 1000.00 4000.00 $12,000.00 $10,000.00 $ 3 3200.00 $ 5972.00 $99,000.00  Reduced State Collected Revenues (Utilities) $10,000.00 Transfer to Increase Undesignated Funds ** Parks-Projects Shelters, Benches, Etc. Town Hal/Downtown Projects arMamnenane/Ceaning Park Repairs, Equipment & Supplies Economic Development/ Legal Fees  62,351.80 $14,500.00 $ 500.00 $2,000.00 $2,000.00 $2,000.00 $3200.00 $3,000.00 $6,000.00  $14,500.00 $500.00 $4,000.00  Economic Development/ Advertising (from Legal Fees) Administrative Expenses & Fees (from Legal Fees)  Building Upkeep Elections Equipment Purchase awn/Outdeor-Maintenance*  3586    Decrease  Increase  Total  Accounting Postage  $5,000.00 $45,000.00 $6,000.00 $52,000.00 $1,500.00 $3,500.00 $3,000.00 $11,000.00 $ 1,500.00 $ 4,000.00 $ 3 1,000.00 $ 1500.00 $10,000.00 $17,800.00 $6,000.00 $10,500.00 $1,000.00 $ 2,400.00 $1,000.00 $2500.00 $2000.00 $ 7878.00 $2,000.00 $14,500.00  Legal & Professional (Attorney) Printing, Office Supplies & Software Repairs & Maintenance Office Equipment Repairs & Maint. Emergency Fund Electricity (from Emergency Fund) Internet/Phone (from Emergency Fund)  $17,000.00  $4,200.00  Security/Alarm Website Design & Hosting Salaries  $ 1,000.00 $2,000.00  $63,000.00 $ 8,000.00  F.I.C.A. (Emergency! Fund)(Salaries) Fire Inspection & Investigation Guilford County/Animal Control  **During the. June 30, 2020 Special Called Town Council meeting to approve the 2019-20201 Ordinance Amendments it was vote. 3-21 to reduce the Transfer to increase Undesignated Funds Budget  $6,000and to remove Lawn/Outdoor Maintenance increase of$6,000. Section 2: Copies of this budget amendment shall be furnished to the Clerk of the  by  to the Budget Officer for their direction.  Governing Board, and  Adopted this 30th day ofJ June, 2020  Signed copies of the actual Budget Ordinance Amendments are int file by Mayor  Attest: Signed copies of the actual Budget Ordinance Amendments by Town Clerk/Budget/Finance  Officer are also ini file.  3587    The discussion on1 the General Fund was as follows:  Jimmy Landreth commented this was his first Budget amendment meeting is this the usual number? Alisa said there usually aren't this many. Last year there were only about 10 or 12, But last was a much larger amount thani this budget was. This 2019-2020 Budget was the first Budget years she budget participated in. She and Kim took advice from other councilmen while putting the together. Alisa said ever to be honest the Budget was cut al lot from years past and was too low fori the expenses we had this Mayor Flynt addressed. Jimmy Landreth's question also and explained that backi in March we had year. made some Budget Amendments so al lot oft times you will do them periodically during the Landreth then asked are we not supposed to get money approved before we. spend it? Alisa year. said Jimmy absolutely. Alisa said ify you will notice in some cases, we are just moving money from one line item ina a category to another line item in the same category. We may have been underbudget in one line but over budget in another SO we can move from the over budgéted item to the under budgeted item int the same category. Alisa said Kim and Ihave talked about it at length this year we are going to be tough you. Anything that comes down the pike that is of any significant cost its going to have really to come to us first SO we can looki int the Budget to see ift the money is there. Then whether the money is there noti iti is going to have to go before the whole Board fora a vote and we will know in the meeting if the or money ist there. There are times we may haves said yes there is money in that category but that particular category. Derek said Alisa Ithinky you are: spot on about crossreferencing the maybe before making large item disbursements. Derek: said he wants to knowi if the small items add Budget jackets, $300 on ink pens with the Town name and address on them, $2200 int t-shirts those smaller expenses do add up. Derek addressed the Mayor and said he noticed in the March amendments that you made that you didn't sign off on those Thearon signed off on those. Derek wanted to know ift the Mayor was going to be signing off ont these amendments? Mayor Flynt said he will make that ofti motion. Mayor Flynt said hei isn't sure why he didn'ts sign off on the March ones. Alisa said part the at the time. The Mayor asked if there were any other comments. Derek said he does have you were out One oft the listed items is to increase the Lawn and Outdoor Maintenance personally will not vote for that one line item because we had $9200 worth of mulch done vote of council: sO that put us over budget. Derek asked if we were going to vote on each individual withouta line item or vote for the entire General Fund Budget. Mayor Flynt said he talked to Tom Medlin before the meeting and he advised it is best to vote for each Budget in its entirety. The Mayor said if we don'tvote fort these we are going to be out of compliance with the State. Derek said and we were out of compliance last year and we still haven'tresponded to their letter. Alisa spoke up and said she has been Mayor Flynt made a motion to approve the General Fund Budget Ordinance Amendments for 2019- 2020 as written, and that the Mayor and Town Clerk/Budget Officer/Finance Officer sign off ont the approval to send it to the State. Thearon Hooks seconded the motion. Mayor Flynt asked ift there any questions. Derek Foy said he doesn't have a problem with all oft the amendments except for were if they are all together like this that makes his decision. Mayor Flynt asked Tom Medlin if he would one. So, address that. Tom Medlin said no he doesn'tthink he needs to address this at this point. Derek is on record saying what he doesn'tsupport. He certainly has a right to make a motion to amend and remove that one line item fora a separate vote. If Derek is comfortable that he is on record fors supporting all excepti that one, that is his call. Derek said with Tomf'srecommendation that better aligns with what he  already  on  not in up and put  us int the position we are ini now. Derek said for example we spent  roughly $400 on embroidered  a comment.  by $ 6,000. Derek said he  waiting fora assistance on how to respond.  3588    would like to do. If we couldj just remove that one line item for Lawn and Outdoor Maintenance laterv vote, he said guess ifv we do that, we will need to decrease the transfer from by $6,0001 fori this particular all-inclusive vote. Derek asked the Mayorif he minds if undesignated he makes funds amendment to. John's motion? Alisa said Derek if you do this, we will most likely be out of a friendly Mayor Flynt said ify you do this, we willl have to have as separate vote on that one amendment. compliance.  out fora  it will pass or we are all going to be violation of the State Budget Office. But the Lawn/Outdoor Maintenance in the amount of $6,000 and as part of that he would like to transfer of undesignated funds by $6,000 so that would make that $62,351.80. And this decrease the out for a separate vote. Mayor Flynt asked ift there was a second to his Derek's the Mayor's motion and Thearon's second of the original motion..  Hopefully  his amendment. Derek said he would likei to make at  Mayor agreed to hear  friendly amendment to exclude the Line-Item  is being pulled friendly amendment to Mayor Flynt  friendly amendment. called to question: VOTE: John Flynt Thearon Hooks Derek Foy  Jimmy Landreth seconded Derek's  Mayor Flynt asked if there were any questions. There were none.  NO NO YES  Jim Rigsbee Jimmy Landreth  Yes Yes  Then Mayor Flynt said we go back to the amended motion to approve everything changes to Lawn/Outdoor Maintenance $6,000. Excluded and decrease of  except fori the $6,000 from the  undesignated Funds. Mayor Flynt had already motioned, Thearon Hooks had seconded the motion.  VOTE: John Flynt Thearon Hooks Derek Foy  Ves Yes Yes  Jim Rigsbee Jimmy Landreth  Yes Ves  Now, Mayor Flynt goes back to the twoi items Lawn/Outdoor Maintenance decrease of $6,000 from the undesignated Funds. original presented Budget Amendment numbers because if we be out of compliance with the State Budget Office andi the is to go back to the increasing Lawn/Outdoor Maintenance to $6,000. Undesignated Funds by $6,000. For thet total in Undesignated funds 68,351.80. Derek: record there was $9200 of invoices for mulch that was put in without a vote of drive us over on this. Alisa said it has already been paid so it is out of the the difference in the budget. In order for us to balance this can'tt take back what is already gone. Thearon said: so  $6,000. Excluded and don'tapprove these items we will Auditors are going to have al heyday with And do the Transfer tol  the  Mayor Flynt wants to make a motion to  gol back to  us. Thearon Hooks seconded the  motion. Tom Medlin, spoke in and said what are  you motioning then Increase said for the Council. That's going to budget. We have to make up  Derek'sr  budget we have to put the money back in. by doing we will not have al balanced  reply was the other option would have been not to pay it. Alisa said that was months  this  ago. You budget,  right? Alisa answered, correct. Derek said we havea a balanced budget now with: the wej just made. Mayor Flynt said wel have a $6,000 invoice we paid that we haven'tc budget amendments Landreth said suggest from now on that we start getting approval on things. There covered.. Jimmy  were at few minutes  3589    ofargument between council over making sure we are aware and able to check the budget before work is done. Alisa spoke up to addi that justi int the last couple ofv weeks she has received invoices and emails for work that she has not been made ofa aware until the work was being done. They were out here today trimming trees and bushes. And Ihad not been made aware that they weret told do this. She said she had to email councilmen and asked if Beaver had been asked to come out and do this work. Jim Rigsbee said hold on a minute there are no expenses for what they were out there doing. Alisa replied back that she still needs to know that. Alisa said everything that comes down the pike, ifsomebody is out here doing maintenance, ir need to know about it., Jim Rigsbee said there should not be an invoice involved. Alisa said there may not be an invoice but when they are out here trimming trees and bushes and doing things she still needs to knowi if they are: supposed to be out here doingi it. When I'm not made aware of whether there is going to be an invoice or not doesn't help mei in my job.. Jimmy Landreth said we had a vote of council, we agreed that we were not going to allow Beaver to do anything else but mow. Alisa replied yes, know that, but they were out here trimming trees and bushes. Jimmy said he strongly objects toi them doing anything but the mowing. Alisa said she had to call to find out that there were no charges for what they were doing. Alisa added, What! lam saying is when you send someone out here to trim a bush, pressure wash the building, to hook upa aj phone line or whatever, In need to know ahead of time and Ineed to know ift there is a charge fori it or not.. Jim Rigsbee said he didn't send Beaver out here, they notified him that they needed to be done as part oft the maintenance contract they were doingi it. There shouldn't be an invoice, there shouldn't be ar notification needed its part oft the contract. Derek said his heartburn is not with them fulfilling their contract obligations its with $9200worth of mulch that was not approved by Council. Alisa said l'm not worried about your heartburn l'm worried about my own. I'mi in this building Isee these people coming out here doing things, Idon't! know who has approved them to come out here. Idon't knowi if l'm going to geta a bill fori iti not andi these are the kinds of things that have happened int the past that has gotten us where we are. You all need to communicate with me. Anytime you talk to Beaver, TCS, Spectrum, anybody else Ineed to know if coming, what they are doing and whether there is a charge. Jimmy Landreth said its pretty simplei if you haven't been toldy you don't need to pay the bill. What am supposed to do if they are out here doing the work when Icome in at 9am. Jimmy said he thinks he made it pretty simple? Thearon said the whole point isa as a courtesy to the person who sits here five days a week and is overseeing everything while we are out doing other things. We have routine things and vendors that come and go and we have an expectation that we will: see them on a regular basis and the funds are already budgeted int the contracts. Everything comes through the Town Clerk; she has fussed at me about stuff. have learned that if there is something that affects her and herj job, Itell her upfront.. Jim Rigsbee said he has the email ini front him and hei is going to readi it. He read an email from Vic Beaver that told. Jim Rigsbee that they had mowed on Monday and saw that there were: some bushes and trees that needed trimming and due to the cool weather, they thought our grounds needed freshening up there will be no additional charge on that.. Jim Rigsbee said he notified other Council. Jimmy Landreth asked. Jim Rigsbee if that email was copied to Town Hall.. Jim Rigsbee said it doesn't look like it was again there was no charge. Jimmy Landreth we are having a conversation about one time since the new council has been here that somebody trimmed at tree, we haven't asked anybody to structure anyi invoices or pay: any bills that they are not supposed to. Alisa replied, God Forbid, I don'twant at tree on this lot trimmed without me knowing about it! Mayor Flynt said okay getting back tot the point. Derek you made the comment that if we strike the $6000 from Lawn/Outdoor Maintenance, andi increase the Undesignated fund $6000 that we will have al balanced budget. But the Mayor thinks we won't be able to reconcile our bank  are  they  3590    statements. Derek said he didn't know ift that is true of not but hei is not going to vote for  ofworki that was not authorized to be done.  $9200worth  There was further argument regarding the $6000. Mayor Flynt said we have ai motion ont thei floor, asking to increase Lawn/Outdoor Maintenance to $6,000. And do the Transferi to Increase Undesignated Funds by $6,000. Fori the total in Undesignated funds 68,351.80. the  called Mayor for  vote: VOTE: John Flynt Thearon Hooks Derek Foy  Ves Yes No  Jim Rigsbee Jimmy Landreth  No No  After the vote Mayor Flynt asked Tom Medlin if could he tell us what kind ofe effect thati is on the Budget and Audit? The Mayor said wel have paid al bill that we can't reconcile. Tom going Medlin have you have over spent your linei item, then your budget is going tol be out of balance. So, have said if unauthorized expenditure that has been paid. You will either have to address that going you forward an tor make sure it doesn't happen again. But as fara as this budget goes, hel believes that know what the repercussions are. Other than to tell you, you've already got the funds that exceeds your budget then its not authorized and ify you don't have other funds going out and if not only will that line item be out of balance but your budget will be out of balance. sufficient Its issue fort the local Auditora and an issue for the Local Government Commission.  to  and try you are going to be he doesn't to cover going to be an  out of balance. Thearon asked Tom if there were other  any  reconciliation options. Tom said  Thel Mayor closed the General Fund with the votes above and moved ont to the Water  as follows:  Enterprise Fund  3591    ORDINANCE 104-2019-2020 BUDGET ORDINANCE WATER ENTERPRISE FUND BUDGET ORDINANCE. AMENDMENTS#S  Effective. June 30, 2020  BEITO ORDAINED by the Governing Board of the Town of Stokesdale, North Carolina, that the  following amendments be made to the annual budget ordinance for the fiscal year 2020: Section 1: To amend the Water Enterprise Fund, expenditures for  ending. June 30,  Expense:  Decrease Increase $ 200.00 $7,000.00 $6,500.00 $ 8,000.00 $ 6 6,000.00  Total $ 1600.00 $ 5300.00 $0.00 1500.00 $162,000.00 $ 78,500.00 1 13,045.00 S 3 35,000.00 $ 4,000.00 > 2 20,000.00 2,000.00 50,602.20  From Dues & Subscriptions  Audit  200.00  From Infrastructure Inspec. Fees From Professional Fees Water Tank Painting Contract Operations-Other Misc. Maintenance & Repair Engineering Consultation Fees WaterTesting Marking Lines 811 Mileage Reimbursement Salariesto Capital Reserve  $21,500.00 $ 5,000.00 $1,000.00 $ 1,000.00  1,000.00 $ 2,397.80 Decrease $27,602.20 $ - 2,000.00  Increase  Total $0.00 $134,397.80  Water Tank Maintenance (Capital Reserve) $10,000.00  Water Tank Painting Add Capital Reserve Electronic Water meter Changeout Electronic Water Meters New construction  $40,000.00 $ 40,000.00 $2,000.00 $  13,000.00 22,000.00  3592    Mayor Flynt made ai motion to approve the Water Enterprise Fund Budget Ordinance Amendments as  they: are written. Derek Foy seconded the motion,  VOTE: John Flynt Thearon Hooks Derek Foy  Yes Yes Yes  Jim Rigsbee Jimmy Landreth  Yes Yes  Comments from Citizens:  Mark Nadel: said he found it unprofessional some oft the comments made about the Town Account Mary Jordah!: Said she had two comments to make. One Mark Nadel just covered it. Shei finds it appalling that Kimberly was called out in a meeting that she's note even in. She has a comment for Landreth as well. She said. Jimmy, Iwanti toi thank you for standing up last week at the end of the Jimmy meeting that thei floor was not open to citizens comments. Alisa stated when you mentioned that it was posted somewhere fort ten days and we had ten days to make our comments and Mary said she had no idea where that would have been posted. She said she is all over that stuff and never saw a place anywhere to send her comments or questions. So, Jimmy thanks for going to bat for the Citizens because absolutely it should be opened up for Citizens to comment at the end ofr meetings. Alisa addressed Mary and said she would like to reply to that. Each meeting is posted in our Town Hall window, on our website, and on Facebook every single meeting and has been sincelcame to work here. Mary said Alisa lwould really like to know where iti is. Alisa replied Mary I'm sorry you were unable to Mayor Flynt wants to apologize to Kim, l'm not questioning heri integrity or the quality of herwork. We've been working on this since March 4th. He said Iwas hoping we would have had this and ready for approval by. June 1st. He has been really frustrated about how much time and Budget how meetings we have had to have. We had the work shop on March 4t, he was hoping tol have had another many meeting in April to finalize things. But the budget was changed, she changed the proportions and it really frustrated him. He said then we, got these budget amendments yesterday and he and Alisa went through them SO we could: send them back to Kim to finalize. He said when you only have one or two days to get something SO complicated and SO critical and crucial to the Town it really makes it Mayor said Itake my frustrations out, Ido apologize to Kim iflsaid anything offensive but I'm tough. we, just need to, its like Derek: said, Ididn't get this until this morning. It's the same situation telling you getting thei information on a timely basis and we have got to find out how to do that. We have we are to not figure out how we are going to get this work processed sO we can have time review it, study on gott and  when she is noti in the meeting to defend herself.  find it.  done  The  vote on it. So, Kim lapologize.  it,  3593    Thearon Hooks: He said he has been handed a two- page, paper here, just a minute. He said Frank Bruno has sent ins some questions that he wants responses on. Thearon said hei is apparently  verbatim. Bear with him. This paperi is titled Response to the Proposed  going to read it  Budget for Stokesdale.  Per Thearon, First Paragraph:  Ihave had a chance to review the final budgets for the general fund and the water fund that voted on this Friday, June 26th and would like to make several comments the water system should cover some oft the shared costs in: the town which regarding include them. lagree that should also be shared. Ido have issues with the following regarding the  will be salary and wages and  the taxes involved with them, including workman's  comp. lalso agree that accounting and audit  costs  being paid by the water: system: is not necessary.  expenses of the general fund  1. The cost of office equipment purchase and repair To have the water: system cover 42.9% 2. Housekeeping, Printing, Office Supplies and Software - The only cost in here that is shared andi there is already an office expense category of $4000 in the water budget. The  oft this cost is printing, water system hasi its  own software, The water system hasi no housekeeping  for How postage.  expenses. The water system also has ai budget  cany your rationalize having the water: system pay 42.9% of these expenses?  3. Town Hall Electricity, Internet/Phone, Security/Alarm, ITS Security & Web Site Design- - Again, being paid by the water system is excessive. At most, this number. should be around 5%. 4. Whyi is the town not paying fori its water use at both the town hall and the park? There is a the town hall which should be read every month and the town should receive al bill. customer of the water system. Ift the town has not been paying this bill then the They are alsoa My main concern is the precedent this will be setting. You are in effect using the money in the water system that is collected by approximately 600 customers and usingi it to subsidize the general will deplete the reserves in the water system fori future use. Ifyouc decide toi increase general fund what is to: stop you from raising water rates to cover them. The run as a separate entity from thet town and not used as a cash Several items in both budgets are also troubling:  42.9% Youcannot meter at  justify this high ofa a percentage for the use of any oft these.  and any back payments should be made to the water  meter needs to be read  system.  fund. This expenses int the water: system should be  cow to cover expenses.  Int the water budget you have only allocated $14,000 for salaries. Gary Matchunis is that and hei is solely an employee oft the water system. Youare also general fund as an expense of $130,806.96. This should be used to cover excessive expendituresi in the general fund.  paid more than  listing a line-item subsidy to the broken down into the categories ofv what  they are covering to be transparent: to the public. If these are excessive funds then the town: lower the fees that the customers pay for their water. Money from the water system should should Int the general fund, both the accounting and legal fees seem excessive. When the outside firm was hired, we were told that once the new QuickBooks program was updated a maximum accounting hours would be needed per week. At $85/hour this would be around $22,000 for the  not be  You of4-5 year. have  budgeted $35,000, which is almost 60% higher. Iwould  replace my accountant or find someone who  3594    can do the jobf for half the price. lalsol believe, based on past budgets, that the  closer to $40,000, and even that may be on the high side, Youd can also cut thes legal budget should be As fara as moving money from the water. system to cover the shortfalls in the general fund be done. The general fund has over 2.5 million dollars in saving and accomplish the same thing without taking from the water: system or cutting any proposed the general budget. Itwould also enable you to lower water rates and put system repairs. Iwould rather see you cut costs to balance the  past levels, saving the town an additional $25,000 in  stipends back to their  expenses.  this should not expenses in  moving it from there would budget, as we have done in past years,  money away fori future water  but there is nothing wrong with Frank Bruno  using saving to cover expenses if needed.  Thearon finished by saying this would be written in the records. Thearon asked ift there comments.. Jimmy Landreth said that'sa little late isn'ti it? We needed that the other were any welll I didn'thave it then,. Jimmy.. Jimmy said he would like for Frank to come all talk about the budget and stuff., Jimmy said that would be  night. Thearon said toar meeting so they could  said he agrees.  good, he made some good points. Thearon  There was more argument over whether we have a balanced budget. Thel Mayor called on' Tom repeat what he had: said earlier. Tom said the appropriations. are balanced. The $6,000 that was not int the budget. Technically, youl have al balanced over your budget. The Mayor said wej just have to figure out how budget, problem is you've spent  to  problem is you've spent  Auditor. VOTE: John Flynt Thearon Hooks Derek Foy  we are going to address this with the  Mayor Flynt motioned to adjourn at 5:10PM,. Jim Rigsbee seconded the motion.  Yes Yes Yes  Jim Rigsbee Jimmy Landreth  Yes Yes  Section 2: Copies oft this budgeta amendment shall be furnished to the Clerk of the  tot the Budget Officer for their direction.  Governing Board, and  Adopted by Council this 30th day of June, 2020 Minutes Approved. January 14, 2021  Mayor  11  Attest:  Clerk  hgk  %  3595    3596