THE ERWIN BOARD OF COMMISSIONERS  BUDGET WORKSHOP TUESDAY, ,JUNE 11th, 2024 @ 9A.M. ERWIN MUNICIPAL BUILDING BOARD ROOM  AGENDA  1. MEETING CALLED TO ORDER a. INVOCATION b. PLEDGE OF ALLEGIANCE 2. APPROVAL OF AGENDA  3. DISCUSSION OF PROPOSED FY: 2024-2025 BUDGET  4. CLOSED SESSION Personnel 5. ADJOURNMENT  A. Pursuant to General Statute 143-318.11(a) (6) for the Purpose of Discussing    8982  ERWIN BOARD OF COMMISSIONERS SPECIAL CALLED MIINUTES JUNE 11th, 2024 ERWIN, NORTH CAROLINA  The Board of Commissioners for the Town of Erwin with Mayor Baker presiding held a Special Called Meeting in the Erwin Municipal Building Board Room on Tuesday, June 11th, 2024, at 9:00. A.M. in Board Members present were Mayor Randy Baker, Mayor Pro Tem Ricky Blackmon, and Commissioners Town Manager Snow Bowden, Deputy Town Clerk Katelan Blount, and Town Planner Dylan Eure were  Erwin, North Carolina.  Timothy Marbell, Charles Byrd, David Nelson, Billy Turnage, and Alvester McKoy.  present.  Mayor Baker called the meeting to order at 9:00. A.M. Commissioner Byrd gave the invocation. Commissioner Turnage led thel Pledge of Allegiance.  APPROVAL OF AGENDA  Commissioner Byrd made ai motion to approve the agenda as presented and was seconded' by  Commissioner Turnage. The Board voted unanimously. DISCUSSION OF] FY 2024-2025 BUDGET  Mayor Baker thanked everyone for attending the meeting. He stated that there had been a couple of submittals of proposed budgets, and now we have a current proposed budget. He asked' Town Manager  Snow Bowden to: recap the current proposed budget. Town Manager Snow Bowden gave the following key points:  Budget is balanced with expected revenues of $4.4m and expected expenditures of $4.4m. Thej proposed budget includes a 5% cost ofliving allowance (COLA): for all' Town Staff. The transfer oft the last oft the ARPA funds, in the amount of about $19,000, is allocated to update the wayfinding signs. The amount of about $30,000 is allocated for the ADA transition plan. About $10,000 is allocated for the equipment for thei new community building. Due to the number of grants wel have this year, there are also funds allocated to help offset the increased cost oft the audit fees. There is also $12,000 allocated for new guns for the Police Department.  Commissioner McKoy joined the meeting at 9:03. Mayor Baker opened the floor for discussion among the board.    8983  MINUTES CONTINUED FROMJUNE 11, 2024  Commissioner Blackmon stated that last year it was discussed to do a wages study for employees. He understands that giving COLA is good, but that we don'tknow what to givei if we don'tknow where we arei inl line with other municipalities. He would really like to see the study dones so that we can ensure He wants to ensure that the ARPA funds are: not being used for any reoccurring expenses since we will He also asked about the cell tower lease funds and where the funds are used- he' 'd like to see how much is He spoke about merit increases and wanting to ensure that it is allocated in the proper line item in each Commissioner Blackmon also expressed conçern over the audit costs doubling and wants to see the audit  we'ret taking care of our' Town Staff. not have those funds moving forward.  set aside for community enhancement, departmental expenses, etc. department ift that is something that the Town can make happen.  services put back out for bid.  Town Manager Snow Bowden stated that iti is about time for that to go back out for bid.  Commissioner Blackmon brought up the proposed sales tax funds. He said hej previously thought the sales Town Manager Snow Bowden explained that the North Carolina League of Municipalities is projecting Commissioner Blackmon also brought up the gas tax and wanted to make sure the updated numbers were Town Manager Snow Bowden explained that he was basing this on thel League projections. They are currently projecting the sales tax, franchise electricity tax, and the natural gas taxes going up, but the telecommunications sales tax and solid waste going down. Our Beer and Wine permits are a one-time annual fee. He stated that the League has been consistently fairly correct with their projections. Commissioner Blackmon asked about the need fort the condemned property line item as well as the miscellaneous contractor services and how much we' ve spent in the last few years on these items. He would like to see ways to generate revenue to help offset costs and be able toi retain employees. He stated that the Town has some of the best employees it has had in a long time. His main concern is that it will bel hard to effectively know how toi retain employees until we. know what employees should' be Mayor Baker posed the question about employee health coverage, with active employees as well as retirees. He stated that he's concerned. about the copays for specialists due to how high they have gotten. There was discussion among the Board about options for copay reduction, assistance, etc. Commissioner Byrd brought up thel HSA option- could we: require Staff to match at 5%1 if they opt in? Iti is the desire ofthe Board to invest in' Town Staff and ensure that we're taking care of our employees.  tax revenue was expected to drop, but now there is an increase.  about a 2% increase int taxes.  correct.  making with a wage: study.    8984  Commissioner Blackmon stated that he would like to see the 5% COLA, then do the study and adjust as Commissioner Byrd stated that Dunn just gave everyone a $15001 bonus across the board, and puti in a merit increase of up to 2%. The discussion was that Dunn has raised their taxes, though. Commissioner Turnage stated that he would like to see some: infrastructure improvements with some of the tax revenues. Residents feel better when they see their tax dollars doing something. Mayor Baker stated that he understands that the Town cannot have the wage study completed before the approved budget is due. He questioned whether the Board wants to move: forward with the 5% and then  needed and possible, but that the study needs tol be done.  look at an increase later in the fiscal year after the study has been completed. Commissioner Byrd asked ift there was a 5% COLA in March of2024. Town Manager Snow Bowden confirmed that this was the case.  Commissioner Byrd said that between thel March COLA and this proposed COLA, we're headed ini the right direction. He said that we: need to get the budget approved and can always do something mid-year.  Mayor Baker asked what the Board wants to do with thej pay. 5%, 7%?1 Merit? Het talked about how the salaries have exploded in the last few years.  Commissioner Blackmon asked what the average salary for the Town is, excluding the' Town Manager. Commissioner Nelson stated that our Public Works employees who have CDLs would be ablet to find other employment for much higher pay, especially now that the CDLI requires a course. Commissioner Blackmon stated that het thinks we will get better employee performance if thel Board can Commissioner Turnage spoke about the last study that was done about 10 years ago. He stated that the Commissioner Blackmon stated that we can always give a little more than the 5%, but that the focus Mayor Baker asked the' Town Manager Snow Bowden what the $92,000 from ARPA would be going. Town Manager Snow Bowden stated that hej planned on $30,000: for wayfinding signs, $30,000 for ADA transition plan, $10,0001 to account for the higher audit fees due to the additional grants, $12,000 fort the new guns for thej police department, and $10,000: for the upgrades to the community building. These are  show their appreciation rather than just telling them.  League was basing those salaries on the size oft the' Town as well.  should be getting the study done.  all one-time expenditures.  Commissioner Turnage asked what department has the highest turnover.  Town Manager Snow Bowden responded that it was thel Police Department, though they are also the Mayor Baker asked ifthere is any additional revenue: that is not shown in the budget that could go toward an increase in salaries. He stated that he understands that the ARPA funds are for one-time expenditures,  Town's largest department.    8985  not to be used for recurring expenses. The cell tower lease revenue. is earmarked for community enhancement. The Town will no longer be leasing the property next tol Public Works as oft the end of Town Manager Snow Bowden stated that thei items that Commissioner Blackmon brought up, specifically, the condemnation line items, could be adjusted and could go toward salary and benefit increases. Hes said he could look at thel budget and see what could be adjusted and put into ai merit line item. Typically the Town does the COLA on July 1 and the merit line item on January or February 15t. We can look at cutting some oft thei items wel haven'ts spent as much on recently and put that toward salaries. There is no transfer off fund balance from community enhancement funds int the budget. We could use those funds for some oft the enhancement items. The only funds in this proposed budget are the operating funds the Town gets from sales tax, property tax, and state-shared taxes. This year's budget also includes the Preibe fund, as opposed to previous years. This is completelyaccounted fori in thel Recreation Department. We could use the Community Enhancement Fund to offset some oft the items we't re wanting Mayor Baker asked ifthere were grants that we could tiet to the Community Enhancement. That grant funding needs to be expended before we: reach into our savings accounts. The demolition funds haven't previously been spent, sO we can divert that, however, we. have residents that are complaining about some Commissioner Blackmon asked why we couldn'tt take the money out oft the demolition line item and reallocate it elsewhere, then use the Community Enhancement funds to cover those demolition expenses. Mayor Baker asked ift thel Depot had already earmarked these funds, because we can only spend so much  June. He asked ift there were any line items that could be adjusted.  toa achieve and reallocate the funds in those line items to other expenses.  homes that need to bet torn down.  Those expenses could: fall under Community Enhancement.  from that fund. Ifthat project doesn't come to realization, we can use those funds. The discussion oft the community enhancement fund continued.  Commissioner McKoy stated that our employees are some oft the most valuable assets our Town has. He stated that his wife has witnessed Public Works working hard and that they should all be rewarded for Commissioner Byrd stated that his rough math with all salaries across the board, without the Town Manager salary, was $48,000 $49,000. The police department salaries are really where thel higher end There was discussion about run-down homes and the need for demolition. Mayor Baker and Commissioner Turnage spoke about listening to the residents of Erwin and the conçerns they have Mayor Baker stated that he would like to reach a decision on the salary issues sO that the Board can move forward with the additional discussion with thej proposed budget. He asked how a 2% increase in salaries Town Manager Snow Bowden stated that considering retirement and benefits, it would be about $15,000 per each percent, sO about a $30,000 change overall. He stated that he can look at shifting some: items  their hard work, as should all Town Staff.  comes from.  regarding thei run-down homes.  over the current proposed budget would affect the funding.  around but that he thinks he can make it work.    8986  Commissioner Blackmon stated that he wanted to ensure that the salary study absolutely needs tol be done. Hei is happy with the 7% but wants to make sure thel Board understands exactly where the budget is with in line with other municipalities. He stated that he would like to try to not raise taxes, but it all comes  down to the level of service we're willing to provide.  Commissioner Byrd asked what the Town would bring ini ifv we added 1%1 tax levy. Town Manager Snow Bowden responded that it would bring in an addition $35,000 ini revenue. Commissioner Byrd then stated that we had the option ofi increasing our tax levy by 1%, which would offset the additional 2% salary increase, but would still keep thei taxes lower than they were a few years Town Manager Snow Bowden confirmed that 2 years ago the Town lowered thet tax rate from 51%1 to The discussion continued on what an additional tax levy would look like for residents. Mayor Baker compared the difference between the original proposed budget Vs the current proposed budget. The increase of $254,272 based onj projected revenue, with at total proposed revenue budget of Town Manager Snow Bowden confirmed that there are no taxi increases, and some increases in state shared quarterly taxes. Thel NCLM is predicting some items to go up and some to go down. Sales tax is Mayor Baker asked about interest earned, onj page 14- the proposed budget shows an increase from Town Manager Snow Bowden explained that this year it was realistic, but next year it would probably not be. This is due to interest rates jumping significantly. The tax re-eval should help balance this next year. Mayor Baker asked ift there were any other questions about revenues. No one brought forward any Mayor Baker began speaking about expenditures. There was ai new addition of $8,000 in the  ago. 48%.  $4,460,106. This is with no tax increases, and slight increases in user: fees.  expected to go up a fair amount. We will keep an eye on our revenues.  $60,000 to $120,000. He asked ifthisi is realistic.  questions.  Commissioner's budget for contingency.  Commissioner Blackmon asked what that $8,000 was for. Town. Manager explained that it was for unexpected expenses.  Commissioner Blackmon requested that the $8,000 contingency line item bei removed, and money placed Mayor Baker asked for the Commissioners toj jump in ift there were any expenditures that they had Commissioner Nelson asked how much sponsorship money thel Park had brought in.  toward the salary study. concerns about.    8987  There was some discussion regarding this. As of April 24, 2024, they had brought in $9625. Att the time Town Manager Snow Bowden pointed out that this was the first year that thel Priebe Fund donations were built into this. The. Auditors wanted to ensure that this was being operated out ofthe General Fund and  oft this discussion, it was probably closer to $10,000. It was budgeted for $8,000.  items were approved by thel Board.  Mayor Baker wanted to clarify the. Animal Control services doubled.  Town Manager Snow Bowden stated that they asked for $48,000, and they negotiated down to $25,000. Mayor Baker stated that they're looking with building ai new facility, sO in the future, the Board needs to be aware that there willl be increases again in the future. The Board may be faced with the decision to either bring Animal Control back in-house, or be faced with higher costs for the contracted service  through Harnett County. There was some discussion on the options. Commissioner Byrd asked about Police Vehicles and the extra vehicles.  Town Manager Snow Bowden stated that there are. 3 surplus vehicles, and 3 spare vehicles, and 13 that  operate on a daily basis.  There was discussion on keeping backup vehicles and selling surplus vehicles. Mayor Baker asked about the Flock Camera system and the annual payments.  Town Manager Snow Bowden explained that this year would bet the first year oft the Flock Camera System, and it would be $25,500. There is an annual payment of $21,000, sO thel Board should be aware Mayor Baker stated that there was an increase from Harnett County for the SRO, which is helpful. The Board just approved al budget amendment for the sewage washer, which was coming out oft the 2023-2024 Town Manager Snow Bowden stated that this position has been open for about 3 years, and this person would be assisting with storm water and general right of way maintenance, as well as other duties within Mayor Baker stated that the Engineer's contract is being paid out oft the Powell Bill, and part is being paid Town Manager Snow Bowden confirmed that $12,000 is being paid from Powell Bill, and $12,000 is  ofthat.  Budget. Hel brought up the question about thej position in the Street Department.  Public Works. It would be helpful to have this person on board.  out ofthe Stormwater Fund.  being paid out oft the Stormwater Collection.  Mayor Baker asked what the revenue is for stormwater collection.  Town Manager Snow Bowden responded that the Town collects about $68,000 for stormwater collection. Mayor Baker asked what the rest oft the fees go toward, if $12,000 went toward thel Engineer.    8988  Town Manager Snow Bowden explained that the remaining funds go mostly to contracted services. Public Works can clean out ditches, but when it comes to shaping ditches, creating new ditches, etc., there are OSHA standards inj place and our Public Works doesn't! have the manpower,e equipment, or expertise There was discussion regarding bringing some services backi in-house rather than contracting, based on There was discussion among thel Board regarding our Town Engineer and the services he provides. Itv was asked how many times ai month the Town Engineer isi in' Town, and how many hours per month he is working for the Town. Since hei is paid ai flat rate, what ist the protocol to ensure that the Town is getting the services that are being paid for? Commissioner Blackmon stated that he would like to see the Commissioner Blackmon asked how much of the Storm Water budget was spent on the West K Street Discussion continued regarding the costs associated with the West K Street project and the options fort the budget going forward. The idea to close West K tol limit the associated repair costs was brought up. The Mayor Baker asked the Board if they'd like to continue with thes same collection of fees for Stormwater. Mayor Baker stated that the. Job Classification Schedule may change based on the study, once completed, but as ofnow the Board agrees with the current Schedule and the employees that the' Town has. Mayor Baker asked what the status oft the Cadet program for thel Police Department is.  itt takes to abide by those required standards.  the quality of services that the Town provides based on fees collected.  use of services more closely monitored.  project.  concern fori ingress/egress and utility lines was discussed.  The Board agreed that they'd like to continue with the proposed amount.  Town Manager Snow Bowden stated that the program was created to assist recruitment for the vacancies at that time. This was to ensure that ifwel have ai need for additional officers, there is something in place to cover the costs oft the. Academy. The Town doesn'tcurrently have ai need, but there may be in the Commissioner Byrd asked about the budgeted and estimated costs oft the replacement service weapons for the Police Department. He stated that the budgeted amount seems high, based on his calculations. He requested that Town Manager Snow Bowden verify those costs with Police ChiefJonathan Johnson. Commissioner Byrd also asked about the age of1 the Police Department Tasers, and what the need for Town Manager Snow Bowden stated that they're fairly old and wom out, the Police Department has used Commissioner Byrd asked about thel body cams that the Police Department utilizes, and if they' re being Town Manager Snow Bowden stated that they are: not working as necessary. Thel body cams help protect the Town Staff, and the policy in place ist that they' 're on for each interaction. The current cameras don't seem to stay on during altercations. The new cameras arei much better at staying on and recording.  coming months.  replacement is. them for 9 or more years.  worn.    8989  Commissioner Marbell asked what happens to the old service weapons for the Police. Department once we Town Manager Snow Bowden stated that he would verify with Police Chief Jonathan Johnson, but his understanding was that the Town would tradei the old weapons ini tol help reduce the cost ofthe new  get the new service weapons.  weapons.  Mayor Baker asked ift there were any changes that the Board would like to see.  There was some comparison oft thej property values from the 2023-2024 Budget Vs the 2024-2025 Budget.  These would be from thel Harnett County' Tax office.  Commissioner Blackmon asked what the current tax collection to date: is. Manager Linda' Williams could get that information for thel Board.  Town Manager Snow Bowden stated that he believed it was close to $1.5 million, but that] Finance Finance Manager Linda Williams gave the report stating that the current ad valorem tax revenue collected Mayor Baker askedi ift there were any additional proposed projects. Hearing none, he reiterated that Commissioner Nelson brought up thej possibility ofa 7%] pay increase for Town Staff rather than a 5% Commissioner Blackmon stated that hel has no issues with the additional pay increase, but that he would There was discussion regarding moving thej proposed budget funds be moved from the community Mayor Baker asked ift there was any additional comments or discussion regarding thel budget. The Board made the decision to properly advertise the budget adoption for. June 24th 2024. at 6pm during Commissioner McKoy made a1 motioni to goi into closed session, pursuant tol North Carolina General Statute 143-318.11(6) for the purpose of discussing personnel. The motion was seconded by Commissioner  to datei is $1,542,940.  pay increase.  really like to see the wage study done.  enhancement and wayfinding signs, the additional minimum housing funds.  the Regular Workshop Meeting.  Turnage. The Board voted unanimously and went into Closed Session at 11:09.  The Board reconvened from Closed Session at 12:14] P.M.  There was discussion regarding the subdivision on St. Matthews Rd, and why thej project was taking sO Town Manager Snow Bowden spoke about the water and sewer grant being reallocated to Harnett Commissioner Nelson asked about Harbor Freight choosing to go to Lillington rather than Erwin. Mayor Baker stated that Harbor Freight is still possibly happening. The company that is building the  long.  Regional Water.    building is not Harbor Freight themselves. They are a company that builds empty buildings and then Mayor Baker asked the Board ifthere were any other concerns. Hearing none, he called for a motion to  leases to companies such as Harbor Freight.  adjourn. ADJOURNMENT The Board voted unanimously.  Commissioner Byrd made a motion to adjourn at 12:17 P.M. and was seconded by Commissioner Nelson.  MINUTES RECORDED. AND' TYPED BY KATELAN: BLOUNT DEPUTY TOWN CLERK  ATTEST:  dan Euene Lauren Evans NCCMC Town Clerk  Baker Randy) Mayor  SS6