MINUTES King City Council Called Budget Workshop May 8, 2024  Thel King City Council, led by Mayor Rick McCraw, convened ata ab budget workshop at King City Hall on! May 8, 2024, at 8:30 am. The: session was attended by Councilwoman Terri Fowler, Councilman Michael Lane, Mayor Pro Tempore. Jane Cole, Councilman Tyler Bowles, City Manager Scott Barrow, City Clerk Nicole Branshaw, Director of Finance & Personnel Susan  O'Brien, and Chaplain Tracey Collins. Mayor Rick McCraw called thei meeting to order.  Chaplain Tracey Collins offered thei invocation and then left ther meeting.  DISCUSSION OF PROPOSED FY 2024-2025 BUDGET  The discussion on the proposed FY: 2024-2025 Budget covered: several key areas, including potential taxi increases, strategies forr maintainingal healthy fund balance, employee retention policies, and the council's role in representing the citizens. Councilwoman Fowler voiced her support fori the proposed 3 cents tax increase, citing the need for progressiveness and the necessity to fund the comprehensive services provided by our full-service city. She also highlighted the state's requirement  forahealthy! fund balance.  Councilman Lane expressed beingi int favor oft the proposed taxi increase of3 cents.  Mayor Pro Tem Colef feels iti is not absolutely necessary to make at taxi increase right nowa andi feels thisi is the people'smoney, and we are tol be good stewards oft the people's money. She states that we have al higher tax rate than Bethania, Clemmons, Lewisville, Tobaccoville, and' Walkertown. This came from thel Department of Revenue, and we are also higher than Walnut Cove, the Surry part of Elkin, Pilot Mountain, and those are. just our surrounding communities. Ifp people wanted to go there forasmaller taxr rate, they could do that. Ithink wel have al lot going for us. Wea arei a bedroom community. Ally you have to do Councilwoman Fowler feels there willl be things throughout they year that needt to be covered when iti is cutf from thel budget, Per Scott and Susan, since Scott has become manager, the City has not dipped into thet fund balance but has in other years. Mayor McCraw stated he had already spoken with City Manager Barrow because he felt it would be a split decision. Hei felt iti in his heart, and he said let's take a vote on it now. I think we have two for the budget and two against the budget. He states that I cannot. After speaking with people from my church. appreciate what Councilman Lane sent us concerning looking at all oft thel houses and what ours would go up whilei those are real numbers, and lunderstand that. Councilman Lane stated thati it wasn't fort that purpose, That was for the different utilityt thing youl had mentioned. Mayor McCraw replies, and lappreciate that. Iwould not votet for at taxi increase ifi it were a split decision. IV wanted to give Manager Barrow a heads-up so he would know how tol look at things. 11 think that is what we need to do to provide our City Manager with al heads-up so he's not blindsided. So, ifiti is a split vote, I cannot vote for a taxi increase. If one of you wants tor make ar motion toi take it out of thet fund balance; becausel want to fund the pays study.! Ithink our employees deserve it. Ify you were going to cut something, I would cut the BAT Mobile. Still, I don't think you should do that; we need that. Susan and Scott have done a great job ont this budget. This is wherel Istand. know some people who don't livei in the city because Councilman Fowler states that I do not agree with that. I know this is hard, but I feel you have to look at this as al business  isl hit the expressway, andi in 15 minutes or less, you are therei in Winston-Salem.  andi possibly, thet fund balance willl havet tol be used.  they cannot afford tol live there. decision and runi it like al business.    Mayor Pro Tem Cole wants stafft tol know she agrees with all recommendations. except the 3 cents taxi increase, She definitely agrees with the pay study, ands shej just feels we have another option, which is thei fund balance. She does not understand why we can't use that option when our fund balance is more thanj just about anybody that shel knows of. Finance Director O'Brien replies if we dropl below 40%, the LGC willg give us av warning and al letter ofi financial concern. Finance Director O'Brien replies that many people are on the watch list or unit assistant list, and ify you are on that list, iti is Councilman Lane replies what does at financially healthy city mean? It means we are representing our city well. For one, it means we aret financially heaithy and stable. Ifwe are beingt told our services are morei than what we charge our citizens, then that is not economically healthy. Councilman Lane states iti is not $240,000 from thet fund balance. To fund this budget fully, itisa6-cent taxi increase, sO really, what Scott has proposedi is meeting int the middle. So, not doinga at taxi increase would add $480,0001 to thei fund balance.I think hel has already done what wel have asked him to do and whatih believe to! be reasonable, and we meti in the middle. We're not fully funding everything that has been asked for already, with the expectation ofv what  Mayor Pro Tem Cole asks how people get away with 81 to 20% in their fund balance.  not good.  is.coming.  Councilman Bowles asked what our fund balance was last year. Finance Director O'Brien and City Manager Barrow responded. around 46%. Councilman Bowles asks, andt they year before that. Finance Director O'Brien replies 42%. fromi the appropriated fund balance account.  City Manager Barrow states that since Ihave been City Manager, we have not made al budget amendment requesting funds  Councilwoman Fowler, Idon't want to cut anything more out. Wer need all that we have int there.  City Manager Barrow, Ithink the consensus l'vel heardi is that everyone likes everything in thel budget, and all fivel likei it. What itc comes down to is the 3-cent tax increase or $240,000 more from the fund balance. I don't think anyone wants to cut  anything.  Mayor Prol Tem Cole statesld don'twant to cut anything.  City Manager Barrow's response: Iwant to mention those surrounding communities are not full-service.  Mayor Prol Tem Cole responded that they do contract to get the service.  Mayor McCraw states okay, let's go ahead and vote on this. How many are in favor of the taxi increase and the proposed  budget as presented?  Councilwoman Fowler says yes, and Councilman Lane says yes. Mayor McCraw states okay, we have two votes, yes.  How many are in favor of not increasing the tax, leaving everything else the same, and taking $240,000 out of the fund  balance?  Mayor Pro Tem Cole, yes, and Councilman Bowles, yes. the $240,000 out of thet fund! balance.  Mayor McCraws stated thatlwould/ havei to split they vote and thatl Iwould bei int favor of not doingt thet taxi increase and taking Ins summary, Mayor McCraw took a vote at the end of the meeting, with the results leaning towards pulling an additional $240,000 from thel Fund Balance rather thant thet three-cent taxi increase. This vote was 2-2, withi thel Mayor breaking thei tie  in favor.    The next step ist to approve the Budget Ordinance. was carried by a unanimous vote of4 4-0. Vliede Banskaw Nicole Branshaw City Clerk  ADIOURNMENT  Councilwoman Fowler motioned to adjourn the meeting at 9:15 am. Mayor Pro Tempore Cole seconded the motion, which  OUNCIL NORTH CAROLINA  OF  hihe INebais  Richard E. McCraw Mayor