May 6, 2021 Budget Work Session Minutes  HAMLET CITY COUNCIL BUDGET WORK SESSION COUNCIL CHAMBERS ROOM 201 MAIN STREET, HAMLET, NC: 28345 THURSDAY, MAY6, 2021 3:30PM MINUTES  Governing Body Present: Mayor Mayor Pro Tem Council Member Council Member Council Member Council Member Staff Present: City Manager City Clerk Finance Officer Attorney Police Chief  Bill Bayless Jesse McQueen Eddie Martin Oscar Sellers Abbie Covington  Maurice Stuart (arrived at 3:41 pm)  Matthew Christian Gail Strickland Jill Dickens TCI Morphis (arrived at 3:48 pm) Dennis Brown  Public Works Director Billy Stubbs Others Present: Andy Honeycutt and Roger Sauls  1. Call to Order 2. Adoption of Agenda The vote was 4-0.  Mayor Bayless called the meeting to order at 3:30 pm.  Council Member Covington motioned to adopt the Agenda. Council Member McQueen provided the second.  3. Presentation - AMi' Water Meters (Advanced Metering infrastructure)  City Manager Matt Christian introduced Andy Honeycutt and Roger Sauls with Meter SYS, Advanced Metering Solutions. Mr. Honeycutt addressed the Board and provided the advantages oft the company as:  Technology solid and reliable Committed to effective metering and billing Independent ofa all manufacturers Provide full program management support Can pull in 720 reads per month Daily field operations Reduces non-revenue water loss Near real-time automated reads detection Over one year of testing and field tracking customer-customers can manage their transactions Maintains operational performance through monthly programs  Customer Portal - improves efficiency, improves revenues thru accurate reading, and engages the  1    May 6, 2021 Budget Work Session Minutes  Replacement in 15 years  Mr. Honeycutt provided 2 options for the purchase oft the' Water Meter System. The first example was a metering service program that was turn key overa a 12-year period. Council Member McQueen calculated the total cost of the installation and monthly fee to be $3,332,000.00. Hei inquired on the life expectancy of the meters. Mr. Honeycutt provided 15y years, but after year 12, the City only pays the monthly fee. Option 2 given, was a conservative number of $2,042,572.01 as a capital investment project. Other network options were discussed that would change the costs. Council Member Sellers asked ifthe program would eliminate public workj jobs. Mr. Honeycutt responded it would free up employees for  other jobs.  4. Review of Proposed FY2021-22 Budget  City Manager Matt Christian discussed the challenges in preparing the proposed budget. The only capital outlay items included are the air packs fori the Fire Department and cabinet fori the Museum. The budget has no increases int taxes or services. He has submitted the Budget Message and Ordinance and the Public Hearing for May 11th has been advertised. Mr. Christian reported changes can be made prior to the adoption. The Manager added he has to send the budget to the Local Government Commission (LGC) by May 17th.The recommended budget balances at $8,423,660.00 and is an operational budget. Council Member Covington asked for the Fund Balance. Appropriation. Mr. Christian advised the budget requires $419,760.00 to balance the General Fund. Council Member McQueen reported, in years' past, sales taxi revenue was used to balance the budget. Council Member Covington expressed concern that the County's change in sales tax distribution will have severe financial repercussions fori the City's sewer plant expansion if the City's bond rating changes; the City may not be able: to repay debt at any rate. She said the County has received grant funds for sewer line expansion from the industrial Park to Hamlet's Sewer Plant. Their decision to cut sales taxi funds may affect the City operationally with the City currently under a sewer moratorium. Council Member McQueen added the City will not be removed from the LGC's list unless the County changes the sales tax distribution. Mr. Christian stated it willl hurt the City when borrowing money and negotiating rates. The Manager informed Council the Public Hearing for the budget willl be held May 11th to receive public comments; thel budget can 5. Motion to goi into Closed Session per NC General Statute $143-318-11(a) (3) Attorney-Client Privilege At 4:15 pm, Mayor Bayless asked for a motion to go into Closed Session and stated the Statute. Council Member Covington provided the motion and Council Member Sellers offered the second. The vote was 5-0. At! 5:39 pm Council Members Covington and McQueen motioned to return to Open Session. The vote was  be adopted foilowing the Public Hearing.  Return to Open Session  5-0.  6. Motion to Adjourn The vote was 5-0. Respectfully: submitted,  At5 5:39 pm, Council Members Stuart and Sellers provided the motion and second to adjourn the meeting.  'I, ALTEN GRCIE SENL MORTV CAR  /r lcll M. Strickland, City Clerk  Gail