6/5/24,8:30AM  City Council Special Meeting  HITEVI  1833  MINUTES  City Council Special Meeting 4:30 p.m. Tuesday, May 28, 2024 317S. Madison Street, Whiteville, NC, 28472  The City Council Special Meeting of the City of Whiteville was called to order on Tuesday, May 28, 2024, at 4:30 p.m., at 317 S. Madison Street, Whiteville, NC, 28472.  1)  ROLL CALL PRESENT: ABSENT:  Terry Mann, Jimmy Clarida, Tim Collier, Joshua Harris,  Helen B Holden, and' Vickie Pait Kevin' Williamson  OTHERS IN ATTENDANCE: Darren Currie, City Manager; Heather Dowless, City Clerk; Colburn Brown, Finance Director; Travis Faulk, Public Works Director; Hal Lowder, Emergency Services Director; David Yergeau, Fire Chief;  Joseph Williams (The News Reporter) Call to Order by Mayor Mann at 4:30 p.m.  2) 3)  CALLTOORDER BUDGET WORKSHOP  3.1) Final Budget Review for FY 24-251 for the City of Whiteville  Darren Currie, City Manager, and Colburn Brown, Finance Director, presented Council with the Final Budget Review for FY 24-25 for the Mr. Currie stated Council was being presented with a balanced budget. This budget includes a boost in pay for employees. It was noted that due to inflationary pressures, there is a proposed tax increase in this budget. There has been an inflation rate increase of between 19.3% and 20.3%. The City has been able to utilize ARP funds for the last few years for Capital projects and needs. These funds were not used for recurring expenses. The funds are now no longer available. The City has a lot of budgetary issues to work through, including competing with neighboring entities for employees. Mr. Currie noted this was the Mr. Brown presented Council with information regarding the proposed budget. He referenced the Property Tax Valuation Cycle, noting the City was in Year 4 of this cycle. He noted the City was facing inflationary pressures, with the inflation rate increasing by around 20% over the last Mr. Brown stated there was a proposed 2.8% Cost of Living Adjustment ( COLA for employees in the proposed budget. There is also a proposed Market Adjustment for employees in this budget. Year 1 in the adjustment was last year, with Year 2 of the adjustment this year. The City's ability to increase wages will help to retain employees, as well as attract them. There is an estimated 7% increase in healthcare benefit cost. The retirement rate increase will be from 12.9% to 13.67% for Mr. Brown presented the proposed budget for Capital Expenditures. He noted some requests didi not make the cut. He stated there was a focus  City of Whiteville.  Council's budget.  four years. He stated that adjustments were necessary.  Non-LEO and 14.5% to 15.10% for LEO employees.  httne lhwhiteville  1/2    6/5/24,8:30AM  City Council Special Meeting  on safety needs for some of these decisions. Some of the costs for other capital expenditures were split over multiple funds, such as the cost for mixers and pumps. Mr. Brown noted the $40,000 originally requested for painting the exterior of Vineland had been removed from capital requests. There is ai fundraising effort for this expense. Itis also proposed that $27,000 in remaining ARP funds be allocated to Vineland. This is the final year of these funds, which were specifically to When reviewing the Debt Schedule, Mr. Brown noted the City would be down to $7.2 Million in debt by the end of the upcoming fiscal year (June 2025). By the end of next year, the City will only owe $600,000 on the City Hall construction loan. Mr. Brown stated the City was moving in the Mr. Brown reviewed the General Fund Revenue budget. He stated there is a proposed 0.56 tax rate increase in the proposed budget. The proposed General Fund budget reflects a balanced budget. He stated this budget is a reasonable and workable budget. There were cuts to get to this point. Mr. Currie noted the proposed 0.56 tax rate would equate to annually around $50 per every $100,000. Council Member Harris asked if the tax rate remained at 0.51, would the employees still be able to receive a COLA. Mr. Brown responded that decisions would Mayor Mann confirmed with Mr. Currie that the proposed budget had to be submitted by June 1. Mr. Currie stated the proposed budget had to be submitted by June 1, but it would not be set until Council formally voted on it. Mayor Mann expressed concern with a 5-cent tax increase, especially with water and sewer increasing as well. Mayor Mann and Council Member Clarida asked if the City could consider a 3-cent tax increase instead, which would be 0.54. Mr. Brown stated he could run Mr. Brown stated this proposed budget reflects a 3% increase in Sanitation, with that increase coming from the contractor company itself. There are proposed increases in Water and Sewer. Many increases are due to inflation. Increases in Storm Water are also necessary due to the tremendous increase in the cost of equipment, etc. When reviewing the proposed Sewer budget, Mr. Brown noted there were still around 300 commercial meters that needed to be updated. The cost to perform this changeout will be around $361,000. There will be around $150,000 of this work done this year, with more to come next year. There will be around $98,105 contributed to Fund Balance from this enterprise fund. Mr. Brown stated this system has to be fixed when Mr. Brown reviewed the proposed Sanitation budget, noting there would not be as much contributed to Fund Balance, with this amount around Mr. Brown reviewed the proposed Water budget, noting the cost for replacing the meters was spread between Water and Sewer. The new meters will help with pressure readings and detecting breaks. The When reviewing the proposed Storm Water budget, Mr. Brown noted this system was doing what it was supposed to do. Mr. Brown reviewed the proposed budget in regards to the Powell Bill, noting these funds will Mr. Brown reviewed the proposed WDDC budget, noting this budget reflects 1.5 employees. He also noted Economic Development was funded through the General Fund. When reviewing the proposed Vineland budget, Mr. Brown stated this budget reflects 0.5 employees. While Vineland operates slightly in the hole, it was noted that Vineland was important based on what it is, what it is worth to the City, and its  be used for entities like Vineland.  right direction.  have tol be made.  these numbers.  itb breaks, as there is no choice.  $27,775.  contribution to Fund Balance will be around $87,863.  be used for street repair projects this year.  location.  httos:lwhiteville. aranicus. com/MinutesViewer: pho?clio id=255&doc 6-2897346.280.11ef811ef81e-00505A89546  2/3    6/5/24,8:30AM  City Council Special Meeting  Mayor Mann stated he appreciated the work that was done in preparing  the City's proposed budget.  4)  ADJOURNMENT  Mayor Mann adjourned thel Budget Workshop.  Terry L. Mann, MAYOR   Meathlns Heather Dowless, CITY CLERK  httos:lwhiteville. aranicus. comMmuesvewerohopaio id=255&doc 6-2897254e62280-161811e-81e.005055a89546  3/3