March 24, 2021 Budget Work Session Minutes  HAMLET CITY COUNCIL BUDGET WORK SESSION COUNCIL CHAMBERS ROOM 201 MAIN STREET, HAMLET, NC28345 WEDNESDAY, MARCH 24, 2021  3:30PM MINUTES  Due to Governor Cooper's Order in regards tot the Coronavirus, the meeting had limited seating. Additional  seating was provided in the foyer. Governing Body Present: Mayor Mayor Pro Tem Council Member Council Member Council Member Council Member Staff Present: City Manager City Clerk Finance Officer  Bill Bayless Jesse McQueen Eddie Martin Oscar Sellers  Maurice Stuart (arrived at 3:34 pm) Abbie Covington (excused at 4:52 pm)  Matthew Christian Gail Strickland Jill Dickens  Public Works Director Billy Stubbs Others Present: Gavin! Stone and' Will Toler  1. Call to Order 2. Adoption of Agenda second. The vote was 4-0. 3. Financial Overview  Mayor Bayless called the meeting to order at 3:32 pm.  Council Member Covington motioned to adopt the Agenda. Council Member Martin provided the  City Manager Matt Christian discussed the expectations for the meeting, saying they would not balance the budget at this meeting and final decisions did not have to be made. He has met with Department Heads to evaluate the needs from the requests received, which willl be presented. The Manager has goals and objectives to present to keep the City grounded throughout the budget process and year, and The City Manager provided an overview of the City's Finances. He reported the General Fund FY2020-21 had a $500,000.00 reduction from the previous year due to the cuts that were made. Also, mentioned was the 10-cent increase int the tax rate. The General Fund has zero debt andi is stable for now. Mr. Christian stated the cuts to the General Fund hurt deeply and long-term stability is uncertain due to the changes made in the sales tax distribution. The revenues for Powell Bill have decreased over the past several years, resulting int the needs exceeding the resources. The General Fund has had to make upt the difference.. A comprehensive assessment of the City Streets is underway to evaluate a new, effective  would like to establish the budget calendar moving forward.  strategy for making the much-needed street repairs.  1    March 24, 2021 Budget Work Session Minutes  Mr. Christian reported, on a cash basis, the Enterprise Fund is operating in the black; however, FY2020 had al loss of $122,000.00, including the depreciation figure. The Citye experienced revenue challenges in 2020 with COVID regarding billing restrictions and the inability to charge late fees. The revenues have rebounded with expenditures now on pace with the revenues. He reported zero debt for the Enterprise Fund, but the City willl have to take on debt to modernize the infrastructure for future growth and gave the example oft the sewer moratorium and expansion of the WWTP as preparedness for the future. Mayor Bayless asked for the Fund Balance Appropriation for the 2020-21 Budget. The City Manager answered $550,000.00 was budgeted to balance the budget. Council Member McQueen inquired on the amount that would be used. Mr. Christian replied he could provide al better answer the end of April, but advised the figure may not tell the whole story due to the deep cuts that were made. Ift the money appropriated for the Fund Balance is not spent, iti is not beçause the City has lots of money; it is because the City made significant cuts and is cautious in its spending due to the current challenges. Council Member McQueen asked for the amount of Powell Bill money spent and the streets that were paved. Publiç Works Director Billy Stubbs answered. $27,000.00 was spent on 400 feet of paving on McDonald Avenue and the rest on the paving assessment. Mr. McQueen asked for the cost oft the paving assessment. Mr. Christian answered $12,000.00 for this year and the remaining balance of the Powell Bill Funds was used for employees' salariès. Council Member McQueen stated the money for the assessment could be used for more paving and a walk around town would show the needs. The City Manager explained half of the assessment would be completed in one year and the: second halfi in the next year. He reported the City's paving quality score is 59 out of 100. His vision is tol look at other options that would gear more toi the maintenance oft the streets. He will report the results to Council and use the findings to make the City's investments more effective. Council Member McQueen asked for the name of the Company providing the assessment. Mr. Christian responded WithersRavenel and explained they used ai truck and cameras to obtain imagery of the streets to provide the information.  Questions and Discussions  4. Budget Discussions  Police Department: Ford Explorers (2)$81,600  The City Manager reported the 2 new vehicles would replace the 2Tahoes. Council discussed waiting until the new Chief arrives before making a final decision, if sedans would be more practical, another make of vehicle may be more cost effective, and the need for the vehicles to be 4-wheel drive. A Council Member McQueen gave his opinion that police should bei in traditional uniforms when they are on patrol. Council Member Sellers agreed. Council Member Martin added sO should the Chief of Police. He said Council was not asked ift the casual uniforms could be worn by the police. He stated Council should approve the color of cars, type of uniforms, badges and emblems. The City Manager advised he will address the issues. Mr. Sellers expressed his concern with ghost emblems on police cars.  decision on the vehicles was not made.  Fire Department: F2501 Truck $48,000  The City Manager advised the Fire Department plans fori the new vehicle to be for the Chief and the current Chief's vehicle to be used fori inspections. The requested F250 would serve as a command vehicle, equipped with a slide out bed for easy reach of equipment andi it could transport multiple employees. Council discussed ifa F250 was needed and felt the Chief should clarify. A decision on the vehicle was not made, but Council did discuss transferring vehiclesi from other departments to fill needs.  2    March 24, 2021 Budget Work Session Minutes  Air packs (2)$16,540-  Mayor Bayless reported air packs are mandatory and the City purchases several each year. Council Member McQueen asked ift the purchase would qualify for the funding from the American Rescue Plan.  A decision on the purchase was not made. American Rescue Plan Funding  City Manager Matt Christian reported the City will receive an estimated $1.85 million in federal stimulus money through the American Rescue Plan. Half oft the money will be received in May. He is waiting on the plan'sguidance, but is hoping the funds can be used to absorb some of the needs in the General Fund. Council Member McQueen suggested looking at benefits for the employees. Mr. Christian answered. Staff has had internal conversations of what could be done for the City's most important asset, it's employees. He will make recommendations to Council when he has the Plan's boundaries. Mr. Christian advised the cabinet is to display a Hamlet specific exhibit int the Visitors Center. It would be built by the same cabinet maker that built the others. A decision on the purchase was not made.  Hamlet Depot & Museums: New Exhibit Cabinet $5,000  Public Works: Street Sweeper $190,485  The City Manager reported the Street sweeper was cut from last year's Budget. Mayor Bayless said the. City went years repairing the street sweeper andi then 2 years without one. A decision on the purchase  of the street sweeper was not made. Limb Truck (F550)$45,485 not made.  Mr. Christian advised the estimate ist fort thei truck only. A decision on the purchase of the limb truck was  Water Crew Truck (F250)$28,255  Council discussed the difference in the prices ofa F250 fori the Fire Department and' Water Crew Truck. The City Manager answered the difference was the extra equipment. Council discussed the need fort the F250 to pullr machinery and heavy equipment. A decision on the purchase of the F250 was not made. Mayor Bayless inquired on the vehicles at the WTP now. Mr. Stubbs reported they have al F250 and a small truck used for obtaining samples. The new truck would replace the existing F250. A decision on the purchase of the F250 was not made but Council discussed sliding another vehicle over to the WTP. City Manager Matt Christian asked for Council's direction in obtaining information on AMI meters. He advised the meters could be a multimillion-dollar project, but would be beneficial in providing more data, more accurate readings and better customer service. Mayor Bayless suggested the Manager  WaterTreatment Plant: F150 Truck $26,900  Water Sewer: AMI Water Meters  arrange a presentation on the meters.  Human Resources: Healthcare Benefit  Mr. Christian discussed 2 options for healthcare for City employees. The first option is a renewal of the current plan with a 6% increase in premiums. The second option has changes in the drug coverage with  3    March 24, 2021 Budget Work Session Minutes  ani increase in premiums of 3.4%. He explained. some oft the covered drugs would go from the $10t tier to the 50%1 tier with a maximum cost of $100. There are: no changes in the insurance provider or network. It has been determined the Cityl had 40 claims ini the previous year that would be affected by the drug change. The difference in the cost to the Cityi isaf $17,000.00 savings for option two. Council discussed,  at some point, new hires may not be able to get paid insurance after retirement.  Employee Salary Increase  The City Manager reminded Council the ostoflwngAdustment had to be removed lasty year. He provided information ont the additional costs of1 1%-4% raises: 1%i is $40,368.19; 2% is $80,736.37; 3%is $121,104.55 and 4%i is $161,472.73. Council discussed the need to do something to retain employees. Mr. Christian said Council may want to consider a partial COLA and doing something else. The Board discussed obtaining the guidelines for the American Rescue Plan and possibly using some oft the money  for the employees in thet form ofa a bonus. Extra Employee Holiday for Easter  Council Member McQueen motioned to give Easter Monday, April 5th as a paid holiday to the City employees. Council Member Covington offered the second. The vote was 5-0. Council Member Covington asked to be excused from the meeting at 4:52 pm.  5. Discussion of 2021-2022 Goals  City Manager Matt Christian discussed. goals for the upcoming year. The first goal is to modernize the infrastructure by upgrading the Wastewater Treatment Plant and replace the water meters. Secondly, he would like to increase community engagement int the development ofa Comprehensive Zoning Plan and organize more community events. The third goal is to improve the City'stechnology by replacing the  phone system, update the website and increase data security and redundancy.  Continued Discussion of the American Rescue Plan Funds  Council Member McQueen stated the City needs to make sure the money is spent for specific uses and needs to bei in the guidelines in every situation with no gray area. City Manager Matt Christian advised, to be consistent, the funds willl be put ina a Special Revenue Fund, making it easy to track the revenues and expenditures. He will present Council with al budget for thei first $925,000.00 that should be  received by! May 1, 2021. Next Budget Meeting  The next Budget Work Session was set for April 21, 2021 at 3:30 pm. Council asked that Department  Heads with Budget Requests attend the next meeting.  6. Motion to Adjourn meeting. The vote was 4-0. Respectfullys submitted, ! ghukon Gail M. Strickland, City Clerk  At5:07 pm, Council Members Sellers and Stuart provided the motion and second to adjourn the  HAM 7 ÇON N CEnS