Town Council Strategic Planning Retreat Minutes Morehead City Town Council-] Day 2  Friday, November 22, 2024  The Honorable Council of the Town of Morehead City met in Special Session on Friday, November 22, 2024, in the Soundside Hall of the North Carolina Aquarium located at 1 Roosevelt Boulevard, Pine Knoll Shores, North Carolina. The purpose of this meeting was to continue the process of establishing the strategic priorities for the next three (3): years, creating an infrastructure plan for the next five (5) years as a living document, completing a comprehensive financial policy, and establishing aj plan to expand the City'sad valorem tax base.  Those in attendance were: COUNCIL PRESENT: STAFF PRESENT:  Mayor Gerald A. Jones, Jr.; Councilmembers Richard Abell, George Ballou, Lee Stiles, William Taylor, and Harvey Walker. City Manager Chris Turner, Finance Director/Assistant City Manager Jewel Lasater, Public Services Director/Assistant City Manager Daniel Williams, Planning and Inspections Director Sandi Watkins, and City Clerk Cathy Campbell.  OTHERS PRESENT:  None  Mayor. Jones reconvened the Strategic Planning Retreat at 8:35a.m. with a quorum present. The meeting was recessed on November 21, 2024. City Manager Chris Turner stated that staff will compile the thoughts from this session into a summary document. The objectives are STRATEGIC SESSION #4: REVENUE EXPANSION & ECONOMIC IMPACTS  interwoven and therefore, will not be ranked in order of] priority.  The City's current revenue streams were identified as enterprise fees, taxes, and other fees. Grants and the Powell Bill are not revenue streams. Grants are project specific and do not provide ongoing revenue, and the Powell Bill is a State appropriation for a specific purpose. Mr. Turner noted that government entities do not seek to gain aj profit but rather seek to raise enough  revenue to provide needed services.  Mr. Turner stated that City staff is fiscally focused and operates within the adopted budget. They do not consider a tax increase as a way to fund new equipment or services. Taxes should only be raised when the Town Council and staff can clearly communicate a valid reason for doing SO, such as expanding and/or broadening the City's ad valorem tax base. It was noted that when expansion takes place, its should address future: needs as well as current needs - "Build it once, Build it right." Mr. Turner stated that the Town Council should not bring projects forward for immediate action that are: not already listed on the Capital Improvement Plan (CIP), unless it is urgent, because it forces the City to dip into the Unassigned Fund Balance, lessening the City's financial position. Instead, suchj projects should be added to the CIP and projected for af future time (2-3 years out) when it canl bej properly budgeted. Heasked for the Town Council's  Morehead City Town Council Strategic Planning Retreat, November 22, 2024-I Day 2  1    commitment to providing sufficient notice of desired capital improvement projects SO that  management can adequately plan for the expenditures.  Mr. Turner stated that thel best way toi increase revenue streamsi ist through the commercial tax base. Commercial development also draws more people to the city to shop, which in turn increases the sales tax revenue. Expanding the commercial tax base will be the focus of the Economic Development Officer Katheryn Metts. Ms. Metts will be seeking to draw the large box stores and popular chains to the City. These businesses will be looking for data to support amove to Morehead City such as what surrounding areas come to Morehead City to shop, what supporting industry is available (IT support), and how easily can they get their products in and out oft the city. He stressed that the City needs to do a better job ofd determining and sharing this  data as well as the daily trip counts for the city.  Councilmember Stiles asked about opportunities to leverage public-private partnerships and infrastructure grants to expand the City's tax base. Mr. Turner asked to return to this  question later in the meeting.  Another option for increasing the City's tax base is to raise the City's ad valorum tax rate. Finance Director/Assistant City Manager Jewel Lasater reported that the County does not have property tax value figures available at this time. The City's best guess is that property values will increase by 10%-2 20%. Anything above 10% will increase revenue without a tax rate increase. The Council must consider the tax rate when determining which objectives to address within the next couple ofyears. Councilmember Taylor suggested that the City consider what will be needed within thei next 10 years and begin to purchase land inj preparation for those  needs.  The Council was asked for ideas of how to engage stakeholders in support of city expansion. Mayor Jones stated that cost sharing has been the most successful method, such as sharing the system connection costs. Mr. Williams advised that the City is no longer authorized to enteri into such arrangements since the discontinuance ofs system impact fees. It was suggested that effective messaging, explaining the advantages of being in the city, is key to overcoming the belief that it is more expensive to be in the city limits. It was suggested that Staff consider thel Mandy Farms neighborhood sincet this would be al low cost project due tot the close proximity of water and sewer lines. Mr. Williams raised the idea of providing water and sewer to the remaining portions of Radio Island. This would not provide an immediate return but would,  over time, as the area is developed.  Ms. Lasater presented a potential strategic goal of Establishing Morehead City as Financially Strong, Consistently Receiving High Financial Ratings and Developing a Solid Framework in Policy and Practice to Secure this Financial Stability from a Long-Term Perspective. This would be accomplished by implementing the following objectives: Objective I Develop & commit to transparent, robust comprehensive financial policies that  support sound short- and long-term financial decision making.  Morehead City Town Council Strategic Planning Retreat, November 22, 2024 - Day2  2    Morehead City that the Council wants to highlight as a draw to the city. Mr. Turner asked for  ideas and the following were offered:  Implementation of Calico Bay Park Diversity in the Downtown Area -. JazzLounge Maintaining Public Water Access - fishing piers, docks, etc. State ofthe Art Services & Facilities for Citizens  Social District  Recreational Activities Pocket Parks/Neighborhoods Friendly and Inviting Alleyways Drinking Water power poles - brown signs  Placemaking Signage (consistent with branding & style guide); street names on Placing Sponsored "Marlins" Citywide (like Swiss Bears inl New Bern) Improve Quality of What Already Exists = the City needs to support and assist the organizers oft the many special events & tournaments - (must determine at what point "Little Rock" Weigh Station- will provide relief forincreased capacity and improve quality. Mr. Turner noted that it will take some time to stand it up.  they become too much) Kid Targeted Activities/Facilities Focus on the Western End oft the City Outside Movies with Pop Upl Movie Screens  Compromise with Mitchell Village by providing a dog park and/or bird blind or Train focused activities to tell the city's history = maybe passenger train service Mr. Turner suggested that the Town Council should determine the culture oft the city and asked, "What is Morehead City to be known for?" All agreed it was to be known as a Fisherman's Paradise." This confirmed a commitment to the wayfinding signage, the "Marlin"  observation deck  and/or model train in a venue such as the museum  initiative, and the "Little Rock" weigh station.  The idea ofal kid's museum was suggested. The City could introduce the idea to ai non- governmental organization and allow them to develop the vision, possibly through a Kid's Museum Foundation. It would provide something for kids to do on rainy days and/or while parents are fishing in the tournaments. The museum could be developed as a STEM (Science, Technology, Engineering, and Mathematics) museum much like the Marbles Kids Museum in Raleigh, NC, the NC. Museum ofl Natural Sciences at Greenville and Contentnea Creek, and the Zing Zumm Children's] Museum of] Jacksonville NC. It could feature exhibits such as a: fishing  simulator.  STRATEGIC SESSION #6: PUBLIC SERVICES, WATER & SEWER Morehead City" Town Council Strategic Planning Retreat, November: 22, 2024 - Day 2  4    Mr. Turner stated that the Public Services, Water and Sewer strategic goal would address the short- and long-term plans for water and sewer services. This goal would include objectives designed to address service rates and future impacts, the 10,000 population trigger, mitigating threats to and weaknesses in service delivery and infrastructure, and short-, medium- and long-  term plans. These may include:  An ongoing 3% annual increase to water/sewer fees, ensuring the ability to maintain service levels. It was noted that the City is currently at 60% capacity and once 80% capacity is reached, the City must have plans, specs, and an identified location in place for another wastewater plant. It was estimated that the City can accommodate another Look at extending utilities ahead of development - recommendation to extend services Mr. Williams advised that Carolina Water just invested $16,000 to upgrade its water system and will market itself as a regional service facility. He recommended that the City get ahead ofthisi initiative since the City already has some: infrastructure in place along the Highway 24 corridor. The City's growth options were defined as westward and/or upward. A question was raised about whether the City should approach the State Legislature about acquiring Brandywine and offering to purchase Carolina Water or ask the North Carolina Department of Environmental Quality (NCDEQ)toa award it tot the City for the benefit of citizens. Mr. Williams stated that the City is also positioned well to accommodate the development of Oglesby Farm STRATEGIC SESSION #7: PUBLIC SERVICES, STREETS, ALLEYWAYS, STREET  4,000 homes.  tot the remainder of] Radio Island.  along Country Club Road.  ENDS, SIDEWALKS & BIKE/PEDESTRIAN  This Public Services, Streets, Alleyways, Street Ends, Sidewalks and Bike/Pedestrian goal would include objectives designed toj protect the City's alleyways, as outlined in the City's 1994 Alley Closing Policy, and street ends that provide public waterfront access, and would also outline how the City will ensure that abutting property owners do not encroach upon these street ends. It was recommended that each street end be numbered and designated as community access. locations, and that signage identifying such be set inj place. This will establish the City's ownership and maintenance responsibility of the street ends. Concurrently, the City would remove all encroachment structures to reestablish pedestrian access. It was noted that bollards could bes seti in place toj prevent vehicle traffic and sidewalks be added to ensure. ADA (Americans  with Disabilities) access.  It was agreed that street end encroachment should be addressed using the: following steps: Step 1:1 Identify each street end as a community access point with signage; Step 2: Mark street and alley boundaries and send letters to adjacent property owners to include a deadline by which time all personal property must be removed from within the boundaries. Signage will be used for street ends and low-cap bollards  Morehead City Town Council Strategic Planning Retreat, November 22, 2024-I Day 2  5    will be used to mark alleyways with approximately six (6) bollards for each alley Step 3: Enforcement - removal ofall personal property not] previously removed andi make improvement to designate city ownership and implement ai maintenance program. City Attorney Derek Taylor advised that a survey of all street ends was conducted in 1998, and he suggested that the City establish a street end policy as was done for alleyways.  section.  Councilman Walker exited the meeting at 11:50 a.m.  STRATEGIC SESSION #8: PARKS & RECREATION, LEAGUES, FACILITIES - &  SERVICES  Mr. Turner presented ai map of Carteret County's Swinson Park, sharing that the County Manager is generally favorable for transferring the park to the City, but this has not been presented to or approved by the Carteret County Board of Commissioners. This park could provide four (4) regulation baseball fields and serve as a key connector for the Morehead City Alternative Transportation System (MATS) trail. This would allow the City to designate Rotary Park as a soccer field facility and to utilize the field behind the Recreation Center for soccer, football, and lacrosse. The fields at Swinson Park could accommodate the wood bat tournaments that are becoming very popular. The City could utilize the outlying undeveloped area adjacent  to MATS trail for additional parking.  Next, Mr. Williams presented two (2) plans for the Parks and Recreation Center renovation. Option #1 adds additional square footage to the back oft the existing building and would feature two (2) National Collegiate Athletic Association (NCAA) regulation basketball courts, a pickleball court, a regulation soccer/football field, kayak launches, and 167 parking spaces. It wasi noted that this is 107 spaces short ofthe City's required number of parking spaces for the facility. This option would cost $22 million before adding landscaping, lighting, field development, equipment, and amenities (picnic tables/shading). Option #2 utilizes the same footprint as the existing building, along with enclosing the center courtyard to meet the Council's request for two (2) basketball courts with bleachers. This option would cost $11 million for demolition and construction only. It was agreed that One Harbor Church's parking could not be used to satisfy the parking requirements. The City would have to waive the parking  requirement for itself or amend the zoning.  Mr. Turner shared that staffhas been talking with Community College staff regarding an opportunity to share city facilities in support of the College's sport programs. There is a possibility of securing a state appropriation to develop a regulation soccer field.  The Town Council was in favor of moving forward with a plan that will accommodate the Council's request for basketball courts with seating, as well as the Community College's needs for aj price that falls between $11- $22 million. Questions and concerns will be addressed  as they arise.  Morehead City" Town Council Strategic Planning Retreat, November 22, 2024-I Day2  6    Mr. Turner stated that the release of the Calico Bay Park had a 99.9% positive response. A tax increase of $0.05 would generate $20 million. This could be extended over a five (5) year period to cover the cost of development or the City could issue public obligation bonds to fund the project. He anticipated that the City would have an answer regarding Calico Bay Park before  the Summer 2025.  SUMMARY/ACTIONITEMS/HOTWASH  Mr. Turner returned to Councilmember Stiles earlier question about public-private partnerships and infrastructure grants stating that such grants are economic development tools. They are joint venture grants utilized for tax credits and are awarded based on the number of jobs that business would generate. The City would have to monitor the business to ensure that the number ofjobs promised are provided and that the level ofjobs is maintained over time. He suggested that economic policies be developed thati include a separate toolbox: fors suchs situations.  ADJOURNMENT  There being no other business to discuss,  meeting 12:45 p.m.  Attest:  Mayor  D CITY  E  TaCanpla Cathy Campbel'City Clerk  58  Morehead City" Town Council Strategic Planning Retreat, November 22, 2024-I Day 2  7