THE ERWIN BOARD OF COMMISSIONERS DECEMBER 2024 REGULAR MEETING THURSDAY, DECEMBER 5, 2024 @ 7:00 P.M. ERWIN MUNICIPAL BUILDING BOARDROOM AGENDA 1. MEETING CALLED: TO ORDER A. Invocation B. Pledge cofAllegiance 2. 3. AGENDAADJUSTMENIS. /APPROVAL OFAGENDA CONSENT AIl items on Consent Agendas are considered: routine, to be enacted on one motion without discussion. Ifa Board member or citizen requests discussion of an item, the item will be removedj from the Consent Agenda and considered under New. Business. A. Regular Workshop on October 28, 2024 (Page 3) B. Regular Meeting on November 7, 2024 (Page 9) C.2 2024 Meeting Schedule (Page 21) D. Resolution Opposing Senate Bill 382 Subpart III-K of the North Carolina Legislative PRESENTATION OF DECEMBER CITIZEN OFTHE MONTH (Page 22) PROCLAMATION RECOGNIZING ERWIN'S 13U BOYS FOOTBALL TEAM PROCLAMATION RECOGNIZING ERWIN'S 13U GIRLSSOCCERTEAM (Page RECESS FOR REFRESHMENTS IN RECOGNITION OF OUR HONOREES PRESENTATION OF FISCALYEAR 2023-2024/ AUDIT (Page 14) Session 4. 5. 6. 7. 8. 9. (Page 22) 22) NEW BUSINESS A. Grain Dealers Encroachment (Page 26) B.ZT-2024-005 Letter of Denial (Page 30) 10. PUBLIC COMMENT Each speaker is asked to limit comments to 3 minutes, and the requested total comment period will be. 30 minutes or less. Citizens should. sign up prior to the. start ofthe meeting. Please provide the clerk with copies ofany handouts you have for the Board. Although the Board is interested in hearing. your concerns, speakers should not expect Board action or deliberation on the subject matter brought up during the Public Comment segment. Thank youfor) your consideration of the Town Board, staff and other speakers. $160A-81.1 11. MANAGER'S REPORT 12. ATTORNEY'S REPORT 13. ADJOURNMENT "INACCORDANCE) WITHADA, REGULATIONS, PLEASE NOTETHATANYONE: WHO. NEEDS AN ACCOMMODATION? TO PARTICIPATE IN THE. MEETING. SIQUIDNOTIPYTHETOINA CLERK. AT (910). 591-4202 ATL LEAST 48 HOURS PRIORTO THE MEETING.** 9052 ERWIN BOARD OF COMMISSIONERS REGULAR MINUTES DECEMBER: 5, 2024 ERWIN, NORTH CAROLINA The Board of Commissioners for the Town of] Erwin with Mayor Baker presiding held its Regular Meeting in the Erwin Municipal Building Board Room on Thursday, December 5, 2024, Board Members present were Mayor Randy Baker, Mayor Pro Tem Ricky Blackmon, and Commissioners Timothy Marbell, David Nelson, Alvester McKoy, and Billy Turnage. at 7:00 P.M. in Erwin, North Carolina. Board Member Absent was Commissioner Charles Byrd. Town Manager Snow Bowden, Town Clerk Lauren Evans, Town Attorney Tim Morris, Town Planner Dylan Eure, Finance Director Linda Williams, Code Enforcement Officer Chris Jones, and Police ChiefJonathan Johnson were present. Mayor Baker called the meeting to order at 7:001 PM. Pastor Thomas Greene gave the invocation. Commissioner Blackmon led the Pledge of Allegiance. AGENDA ADJUSTMENT/APPROVALOF AGENDA Town Manager Snow Bowden requested to add Resolution Opposing Senate Bill 382 Subpart III-K ofthe 2024 North Carolina Legislative Session asi item D under Consent. Commissioner Blackmon made ai motion to approve the agenda as amended and was seconded by Commissioner Nelson. The Board voted unanimously. CONSENT Commissioner Blackmon made ai motion to approve (ITEM A) Minutes of Regular Workshop on October 28, 2024 (ITEM B) Minutes ofl Regular Meeting on. November 7, 2024 (ITEMC C) 2024 Meeting Schedule (ITEM D) Resolution Opposing Senate Bill 382 Subpart III-K ofthe 2024 North Carolina Legislative Session and was seconded by Commissioner Turnage. The Board voted unanimously- OF TOWN OF ERWIN P.O. Box 459. Erwin, NC 28339 Ph: 910-897-5140- Fax: 910-897-5543 www.erwin-nc.org Mayor Randy L. Baker Mayor Pro Tem Ricky W. Blackmon Commissioners Alvester L. McKoy Timothy D. Marbell Charles L. Byrd David L. Nelson William R. Turnage 2025 Town Board Schedule Thursday, January 2nd at 7PM Thursday, February 6th at 7P PM Thursday, March 6that7 7PM Thursday, April 3rd at 7 PM Thursday, May 1stat 7PM Thursday, June Sthat 7E PM Thursday, July 3rd at 7PM Thursday, August 7th at 7 PM Thursday, September 4th at 7 PM Thursday, October 2nd at 7 PM Thursday, November 6that 71 PM Thursday, December 4th at 7PM TOWN OF ERWIN P.O. Box 459. Erwin, NC: 28339 Ph: 910-897-5140-F Fax: 910-897-5543 www.erwin-nc.org Mayor Randy L. Baker Mayor Pro Tem Ricky W. Blackmon Commissioners Alvester L. McKoy Timothy D. Marbell Charles L. Byrd David L. Nelson William R. Turnage 2025 Town Board Workshop Schedule Monday, January 27th at 6 PM Monday, February 24th at 6F PM Monday, March 24th at 6PM Monday, April 28th at 6 PM May Workshop Canceled Due to Holiday Monday, June 23rd at 61 PM Monday, July 28th at 6 PM Monday, August 25th at 61 PM Monday, September 22nd at 6 PM Monday, October 27th at 61 PM Monday, November 24th at 6PM *Workshop meetings may be canceled ift there is nothing on the agenda TOWN OF ERWIN P.O. Box 459. Erwin, NC28339 Ph: 910-897-5140-F Fax: 910-897-5543 www.erwin-nc.org Mayor Randy L. Baker Mayor Pro Tem Ricky W. Blackmon Commissioners Alvester L. McKoy Timothy D. Marbell Charles L. Byrd David L. Nelson William R. Turnage 2025 Planning Board/Board of Adjustments Schedule Tuesday, January 21st at 7 PM (Due to Holiday) Monday, February 17th at' 7PM Monday, March 17th at 71 PM Monday, April 21stat 7PM Monday, May 19th at 7PM Monday, June 16th at 7PM Monday, July 21st at 7PM Monday, August 18that7PM Monday, September 15th at7 7PM Monday, October 20th at 7PM Monday, November 17th at 7 PM Monday, December 15th at 7 PM *Meeting(s) may be canceled ifthere is nothing on the agenda TOWN OF ERWIN P.O.1 Box 459. Erwin, NC28339 Ph: 910-897-5140- Fax: 910-897-5543 www.erwin-nc.ory Mayor Randy L. Baker Mayor Pro Tem Ricky W. Blackmon Commissioners Alvester L. McKoy Timothy D. Marbell Charles L. Byrd William R. Turnage 19 RESOLUTION OPPOSING SENATE BILL382 SUBPARTII-K OF THE 2024 NORTH CAROLINA David L. Nelson LEGISLATIVE SESSION 2024-2025--013 WHEREAS, recognizing the importance of zoning tot the peace, prosperity, and happiness ofNorth Carolina'si municipalities, for generations the State ofNorth Carolina has allowed municipalities to regulate local development, which in turn, residents have relied upon in making their most important financial investments, the purchase oftheir homes; and WHEREAS. The' Town of Erwin has responsibly exercised the zoning andl land use WHEREAS, the Town of Erwin considers the zoning of properties as a decision to ber made by the elected body with input from the property owner(s) and neighboring WHEREAS, municipalities in the State of] North Carolina have their unique characteristics and challenges and statewide zoning mandates thus may have unintended negative consequences for the residents oft the State ifp property owners have the ultimate WHEREAS, SB382 is now pending in the North Carolina General Assembly tol be overridden and would reduce municipalities' authority to zone properties in a way that would best fit the future growth of the town without authorization from the property authority granted toi it by the State ofNorth Carolina; properties; and power of forbidding zoning changes; and owner; and WHEREAS, SB382 Subpart III-K is a comprehensive reduction on local land-use planning and the ability oflocal government, the government closest to the people, to hear from and respond to the needs ofour citizens in the long-standing planning and zoning forums granted by law. NOWTHEREFORE BEI ITI HEREBY RESOLVED by the Town Board ofthe 1. That the General Assembly's House ofl Representatives not override Governor Cooper's 2. That a copy oft this resolution be sent to our elected NC State Representatives. Town of] Erwin, North Carolina as follows: Veto of SB382; 3. That the Town Manager take whatever additional steps he deems prudent in opposing this legislation. Duly adopted this the 5th day of December 2024. ATTEST: Evans NCCMC Ohunt Lauren Town Clerk Mayor ESE 9053 MINUTES CONTINUED FROM DECEMBER 5, 2024 PRESENTATION OF JANUARY CITIZEN OF THE MONTH Meagan Lorraine Greene of4 410 Old Post Road was recognized as the December 2024 Citizen of the Month. Mayor Pro Tem Blackmon presented her with a Proclamation Plaque. The Proclamation is part oft these minutes as an attachment. PROCLAMATION RECOGNIZING ERWIN'S 13U BOYS FOOTBALL TEAM The Town Board of Commissioners recognized Coaches Chamod Thompson and Jamel Sledge Sr. and the players on the 2024 Erwin 13U Boys Football Team for an amazing season. Mayor Baker presented Coach Chamod Thompson with al Proclamation Plaque. The Proclamation is part ofthese minutes as an attachment. PROCLAMATION RECOGNIZING ERWIN'S 13U GIRISSOCCERTEAM The Town Board of Commissioners recognized Coaches Amanda Lee and Jessica Lucas and the players on the 2024 Erwin 13U Girls Soccer Team for an amazing season. Mayor Baker presented Coach Jessica Lucas with al Proclamation Plaque. The Proclamation is part ofthese minutes as an attachment. RECESSED Commissioner Turnage made ai motion to recess at 7:17 PM for ai reception and was seconded by Commissioner Blackmon. Motion Unanimously Approved. RECONVENED Commissioner Blackmon made ai motion to go back into regular session at 7:231 PM and was seconded by Commissioner Turnage. Motion Unanimously Approved. PRESENTATION OF FISCAL YEAR 2023-2024AUDIT R. Bryon Scott, CPA came forward and presented the Fiscal Year 2023-2024 Audit for the Town A copy of the Fiscal Year 2023-2024. Audit Presentation is attached, to these minutes. Commissioner Blackmon made a motion to accept the audit report as submitted and was seconded by Commissioner McKoy. The Board voted unanimously. ofl Erwin. TOWN OF ERWIN P.O. Box 459-Erwin, NC2 28339 Ph: 910-897-5140 Fax: 910-897-5543 www.erwin-nc.org PROCLAMATION RECOGNIZAING MEAGAN LORRAINE GREENE FOR CITIZEN OF THE MONTH Mayor Randy L. Baker Mayor Pro Tem Ricky W. Blackmon Commissioners AlvesterL. McKoy Timothy D. Marbell Charles L. Byrd DavidL. Neison William R. Turnage 2024-2025--004 WHEREAS, the Town ofErwinl Mayor and Board of Commissioners realize that the' Town of Erwin's greatest asset is viewed as the citizens that contribute tirelessly and unselfishly of themselves to aidi in the well-being oft the residents within the community. These citizens display characteristics and qualities in ani individual that strive toi make ar real difference int the lives of children, adults, and the elderly without desire fori recognition, remuneration, or personal gain; and WHEREAS, Mrs. Meagan Lorraine Greene of4100 Old) Post Road, Erwin was borni ini the Bronx of WHEREAS, Mrs. Greene graduated from East Carolinal University in Greenville, NCin! May of2010 with al B.A. inl History and then went on1 to graduate from Campbell University Divinity School in May of2014 with al Masters ofDivinity. Shei is currently in the process ofher doctoral studies at WHEREAS, Mrs. Greene married her husband, Thomas, on May 8, 2016, and their 8.5 years of marriage has been blessed with one son, Harris Mitchum Greene. Shel has been associated with Erwin since 2014 andi moved tol Erwin with her husband in 2018. She isa a Co-Pastor at First Baptist Church WHEREAS, Mrs. Greene has served local churches inl Dunn and Smithfield since. January 2011.She has felt greatj joyi ini nurturing others int their faith walk with Christ, serving her local community, and serving on1 thel Erwin. Area Chamber of Commerce as a clergy representative. She was an instructor at Byung Lee's Martial Arts where she also obtained her third-degree blackbelt and she even competed int tournaments in South Korea where she came: in second place. Shei is a Civil War enthusiast, participating ini reenactments from Bentonville all the way to Gettysburg. Shei is also an electric guitarist of an all-girl band.. Above all, shei is grateful tol be: a part ofa Town/Community that strives to NOWTHEREFORE BEI ITI RESOLVED that the Town of Erwin Mayor and] Board of Commissioners give recognition and appreciation tol Mrs. Meagan Lorraine Greene: for her valuable contributions to the quality of] life in our community and proudly acknowledgel Mrs. Meagan Lorraine New. York on July 25, 1987, to Steve and) Lorraine Vizard. Campbell University where shel hopes to obtain) herl Doctor ofMinistry. ofl Erwin and has been serving there for 2 years and 81 months; and love one another and their neighbors. Greene as the December 2024 Citizen of thel Month. Duly Adopted, this the 5th day of] December 2024. ATTEST: Randy Town S5 ChE TOWN OF ERWIN P.O. Box 459. Erwin, NC28339 Ph: 910-897-5140- Fax: 910-897-5543 www.erwin-nc.org TOWN OF ERWIN PROCLAMATION TO CONGRATULATE ERWIN 13U BOYS FOOTBALLTEAM 2024-2025---002 Mayor Randy L. Baker Mayor Pro Tem Ricky W. Blackmon Commissioners AlvesterL. McKoy Timothy D. Marbell Charles L. Byrd David L. Nelson William R. Turnage WHEREAS, Coaches Chamod Thompson and Jamel Sledge Sr. and the players on the 2024 Erwin 13UBoys Football Team led thet teami tot triumph by utilizingacombination: ofa all the attributes of WHEREAS, thet talented players oft this championshipi team are. Jamel Sledge, Braden! Smith, Ryan Galicia, Sirel Brooker, Mason. Jones, Phillipl McLeod, Max Cullen, Miles Matthews, Kaden' Worth, Michael Matthews, Ayden West, Rodrick Worth, Tucker Lucas, Tavon Blue,AydenA Amerson, and] Decari WHEREAS, throughout the season the 2024 Erwin 13U Boys Football Team exhibited the tenacity and determination that would lead them on to victories which included winning the Hamett WHEREAS, Coaches Chamod Thompson and. Jamel Sledge Sr. arei tob be commended for their hard work and dedication, which provided this team of young athletes with the achievement they will WHEREAS, iti is with great pleasure and' Town ofl Erwin pride, that the Town of Erwin! Mayor and Board of Commissioners pauses to recognize the accomplishments and dedication of these fine Town of] Erwin athletes andt their coaches andt to congratulate them ont their momentous success. NOWTHEREFORE BEI ITRESOLVED, by the Mayor and Board of Commissioners ofthe Town of Erwin, congratulate the 2024 Erwin 13U Boys Football Team and coaches on an amazing achampionsahip-caliber football team; and Carpenter, and County Championship; and certainly cherish fort ther rest oft their lives; and season. DULYADOPTED, this the 5h day ofI December: 2024. ATTEST: Evans, NCCMC Town Clerk dhu fans Randy Mayor SS6 TOWN OF ERWIN P.O. Box 459. Erwin, NC28339 Ph: 910-897-5140- Fax: 910-897-5543 www.erwin-nc.org TOWN OF ERWIN PROCLAMATION TOCONGRATULATE ERWIN 13U GIRLS SOCCERTEAM 2024-2025---003 Mayor Randy L. Baker Mayor Pro Tem Ricky W. Blackmon Commissioners Alvester L. McKoy Timothy D. Marbell Charles L. Byrd DavidL. Nelson William R. Turnage WHEREAS, Coaches. Amandal Lee and. Jessical Lucas and thej players on1 the 20241 Erwin 13U Girls Soccer Team led the team to triumph by utilizing a combination of all the attributes of a WHEREAS, thet talented players of this championship team are Angell Marie Corbin, Lilly Bergman, SkyleighTyndall, Abigail Corbin, Javonnil Bagwell, Savannah McLamb, Keira! Stevens, Chloe Lucas, Hailey Ramirez, Elena' Tasios, Lillith Hoose, Lydial Brown, Sloan Colmenero, Zoiel Beasley, championship-caliber. soccer team; and Danielle Fisher, Knorah Whitmore, and. Jasiahl Bagwell; and WHEREAS, throughout the season the 2024 Erwin 13U Girls Soccer Team exhibited the tenacity and determination that would lead them on to victories which included winning the Hamett WHEREAS, Coaches Amanda Lee and Jessica Lucas are to be commended for their hard work and dedication, which provided this team of young athletes with the achievement they will WHEREAS, iti is with great pleasure and' Town of Erwin pride, that the' Town ofl Erwin Mayor and Board of Commissioners pauses to recognize the accomplishments and dedication of these fine Town of] Erwin athletes andt their coaches and to congratulate them on their momentous success. NOWTHEREFORE BEI ITRESOLVED, by thel Mayor and Board ofc Commissioners oft the Town ofl Erwin, congratulate the 20241 Erwin 13U Girls Soccer' Team and coaches on an amazing season. County Title; and certainly cherish for thei rest oftheir lives; and DULYADOPTED, this the 5hh day ofDecember: 2024. ATTEST: Evans, NCCMC Town Clerk cbu en Randy Mayor ES6 CERTIFED PUBLG Audit Presentation Town of Erwin Fiscal Year June 30, 2024 R. Bryon Scott, CPA 910-862-8129 scotttpsacpas.com - Table of Contents Chart presentation General Fund Revenue Analysis General Fund Expenditures. Analysis Revenue Analysis-Fiscal year. June 30, 2024 Revenue Analysis-Fiscal year. June 30, 2023 Expenditures Analysis-Fiscal year. June 30, 2024 Expenditures Analysis-Fiscal year. June! 30, 2023 Cash Analysis-Five years for General & Capital Enhancement Funds Fund Balance Analysis-Five years for General & Capital Enhancement Funds Tax Collection Rate Analysis Property Tax Valuation Analysis Required Auditor Communications Communication of Internal Control Related Matters Schedule of Findings & Responses LGC Financial Indicators Revenue Analysis Town of Erwin General Fund Revenue 5 year comparison $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 s 2020 2021 02022 2023 2024 9 0 / / MM - Expenditures Analysis Town of Erwin General Fund Expenditures 5y year comparison $1,400,000.00 $1,200,000.00 $1,000,000.00 $800,000.00 $600,000.00 $400,000.00 $200,000.00 2020 02021 02022 2023 2024 7/ / / / 17 Revenue Analysis-Fiscal Year. June 30, 2024 Town of Erwin 2024 Revenue Investment Earnings, Other Taxes & Misc., $200,850,4% Permits and Fees, $16,710, $440,767,10% 0% Sales & Services, $671,054, 14%- AdValorem Taxes, $1,779,355,38% Adv Valorem' Taxes Unrestricted Intergovernmental R Restricted Intergovernmental "Sales & Services Permits and Fees =Other Taxes & Misc. Investment Earnings Unrestricted Intergovernmental, $1,386,956,30% Restricted Intergovernmental, $168,962,4% Revenue Analysis-Fiscal Year. June 30, 2023 Town of Erwin 2023 Revenue Investment Earnings, $103,138,2% Permits and Fees, $17,495, Other Taxes & Misc., 0% Sales & Services, $642,955, 15% $425,981,10% Ad Valorem Taxes, $1,757,248,406 Ad Valorem Taxes Unrestricted Intergovernmental F Restricted Intergovernmental. Sales & Services "Permits and Fees "Other Taxes & Misc. Investment Earnings Unrestricted Intergovermental, $1,235,081,28% Restricted. Intergovernmental, $200,670,5% Expenditures Analysis-Fiscal Year. June 30, 2024 Town of Erwin 2024 Expenditures Culture &F Recreation, $447,421.00,12%, Debt Service, $- ,0% General Government, $667,602.00,18% General Government PublicSafety Publicl Works B Environmental Protection Transportation "Culture & Recreation Debt Service Transportation, $609,387.00,16% Public Safety, $1,297,815.00,35% Environmental Protection, $434,755.00,12% PublicV Works, $255,294.00 ,7% Expenditures Analysis-Fiscal Year June 30, 2023 Town of Erwin 2023 Expenditures Culture &1 Recreation, $546,221.00,16%, Debt Service, $- ,0% General Government, $592,532.00,189 General Government Public Safety Public Works E Environmental Protection Transportation Culture & Recreation Debt Service Transportation, $439,289.00,13% PublicSafety, $1,029,992.00,309 Environmental Protection, $679,048.00,20% PublicWorks, $96,981.00, 3% Cash Analysis-General Fund and Capital Enhancement Fund $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 General Fund Enhancement Fund $0 2020 2021 2022 2023 2024 Fund Balance Analysis-General Fund and Capital Enhancement Fund $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 General Fund Enhancement Fund $0 2020 2021 2022 2023 2024 Tax Collection Rate Analysis Town of Erwin Tax Collection Rate 4 year comparison 100.00% 2021 2022 2023 - 2024 98.00% 96.00% 94.00% Tax Collection Property Tax Valuation Analysis Town of Erwin Property Tax Valuation 400000000 350000000 300000000 250000000 200000000 150000000 100000000 50000000 0 2021 2022 2023 2024 TOWN OFI ERWIN ERWIN, NORTH CAROLINA This] page left blank intentionally CERVIFIED PVELE AECOUNTANTE Required Auditor Communications Town of Erwin Fiscal Year June 30, 2024 Table of Contents Required Auditor Communications Communication of Internal Control Related Matters Schedule of Findings & Responses Required Auditor Communications Area Comments Our Responsibility under Generally Accepted Auditing Standards Express opinion on these financial statements in conformity with generally accepted accounting Plan and perform the audit to obtain reasonable assurance about whether the financial statements arei free from material misstatement. Determine audit procedures based upon our risk assessment of material misstatement and evaluation ofi internal control. Evaluating appropriateness of accounting policies, reasonableness of significant accounting estimates, and overall presentation ofi financial Consider the Town's ability to continue as a going concern for a reasonable period oft time. Communicating significant matters to principles. statements. management. Accumulate all known and likely misstatements identified and communicate them to appropriate level of management. Wel have no responsibility to perform procedures beyond those related to the financial statements. Perform the audit according to our letter to you dated May 1, 2024. (Copy available at Planned scope and timing of the audit your request.) Required Auditor Communications Area Comments Significant accounting policies Management is responsible for selecting and implementing appropriate accounting policies. See Note 1 tot the financial statements. No transactions entered into for which there was al lack of authoritative guidance. Significant policies are listed in detail in the notes section. There are no unusual policies. Adoption or change in accounting policies Significant accounting estimates None. Based on managements knowledgelexpenence. Significant estimates include uncollectable accounts, based on prior year write offs. Estimates are reasonable. Significant disclosures Difficulties encountered in Performing the audit Disclosures are neutral, consistent, and clear. Nos significant difficulties performing the audit. Nos such disagreements arose during the course Disagreements with management Correctedluncorected misstatements oft the audit. Nou uncorrected audit adjustments. Management reviewed and accepted responsibility for all proposed adjusting entries. Required Auditor Communications Area Comments Management representation Management signed those representations on October 14, 2024. (Copy available at your request.) Consultations with other accountants None to our knowledge. Other issues Discussed application of accounting principles and auditing standards prior to retention but not as a condition to our retention. See compliance section of audit. Other findings and comments Local Government Commission's financial indicators, Communication of Internal Control Related Matters Report On Internal Control Over Financial Reporting And On Compliance and Other Matters Based On An Audit Of Financial Statements Performed In Accordance With Government. Auditing Standards Independent Auditor's Report To thel Honorable Mayor and Members oft the' Town Council Town of] Erwin, North Carolina Wel have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the Town ofl Erwin, North Carolina, as of and for the year ended. June 30, 2024, and related notes to thei financial statements, which collectively comprises the Town of Erwin's basic financial Inj planning and performing our audit of the financial statements, we considered the Town of Erwin's internal control over financial reporting (internal control) as al basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town of] Erwin's internal control. Accordingly, we do not express A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that therei is ar reasonable possibility that ai material misstatement oft the entity's financial statements will not be prevented, or detected and corrected on at timely basis. A. significant deficiencyi is a deficiency or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit Our consideration of the internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify certain deficiencies in internal control, described in the accompanying statements, and] havei issued our report thereon dated October 14, 2024. Report on Internal Control Over Financial Reporting an opinion on the effectiveness oft the" Town's internal control. attention by those charged with governance. schedule of findings andi responses that we consider tol be a significant deficiency, 2024-001. Communication of Internal Control Related Matters Report on Compliance: and Other Matters As part of obtaining reasonable assurance about whether the Town of Erwin's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances ofi noncompliance or other matters that arei required tol bei reported under Government, Auditing Standards. Government Auditing Standards requires the auditor to perform limited procedures on the Town of Erwin's responses to the findings identified in our audit are described in the accompanying schedule of findings and responses. The Town's response was not subjected to the auditing procedures applied in the audit of the financial The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not Town of] Erwin's Responses to Findings statements and, accordingly, we express no opinion oni it. Purpose of this Report suitable for any other purpose. Elizabethtown, North Carolina October 14, 2024 7kompsor, Price, Seott. Adans &D..PA Schedule of Findings and Responses Section I. Summary of Auditor's Results Financial Statements Type of report the auditor issued on whether thei financial statements audited were prepared in accordance to GAAP: Unmodified Internal control over financial reporting: Material weakness(es) identified? Significant Deficiency(s): identified? Noncompliance material to financial statements noted? yes X none reported Xyes none reported yes Xno Schedule of Findings and Responses Section II- Financial Statement Findings SIGNIFICANT DEFICIENCIES 2024-001 Segregation of] Duties Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled Condition: Key duties and functions are not segregated amount Town personnel. This is especially a concern in cash management, accounts receivable, purchasing, andj payroll functions in all departments. Effect: Transactions could be mishandled, due to errors or fraud that could lead to loss of assets or the Cause: There are al limited number of personnel for certain functions and lack ofboard oversight. Identification ofa repeat finding: This is a repeat finding from thei immediate previous audit, 2023-001. Recommendation: The duties should be separated as much as possible, by possibly training and utilizing non-financial personnel and utilizing alternative controls. The governing board should provide some of Views of responsible officials andj planned corrective actions: The Town agrees with this finding and will appropriately. reporting of misleading financial information. these controls. adhere to the correction action plan onj page 63 in this audit report. PERFORMANCE INDICATORS Thes self-reportedi informationf fromy yourunit's auditn report wasu usedtos generatett thef followingt trendsa andp performancel Indicators. Wel havec createdt thisP Performancel Indicatortabt tomaket thesei indicators avallablet to auditorsa andk localgovemments wheny youra auditi isconducted. fanyu unit'sn results aresh shadedr red, theu unit musts submit "Responset totheA Auditor'sF Findings, Recommendations, andF Fiscall Matters" within 60daysf fromthea auditor'sb boardp presentation. Then responsen addressall performancei Unit Name: Unit Number: Erwin 50126 FiscalYear2024 Explanationo diPeriomanceindkator mnt the past, units of government! havel been grouped! by population to evaluate ratiosa and benchmarking! (Including Funde Balance Avallable). Beginning withf fiscaly year2 2020, wel haves grouped units byl General Fund expenditures for purposes ofe evaluating ther minimum amount off fund balance a unit needs to operate. A unit's General Funde expenditures proved to be al better correlation to thel amount off funds balance needed to operate, especlally for units with large higher education or tourism populations. Activity from Debt Service Funds (Ifa applicable) is included In thec calculation The table belowl listst thet thresholds that are used Int thea analysis of your unit's fiscal health. These thresholds were determined based on an analysis of previous years general funda activity. These becauset theset fundst typicallyo originatef fromi the General Funda anda aret transferred toal Debts Service Fund. thresholds will ben monitored andi updated as applicable. Municipalities General FundE Expenditures! below: $100,000 $100,000t tos $999,999 $1,000,000to $9,999,999 Above $10,000,000 Counties General Fund Expenditures! below: Belows $100,000,000 $100,000,000: anda above GENERALF FUND: subject" Prior) Vear FinanclalD Data." Median FBAa as%of Minimum Thresholds #of Months FBAU using Annualized Expenditures without FBAas%of PowellE Bill 260% 132% 63% 46% Expenditures without FBAas%of Powell Bil 39% 32% Expenditures 12.00 8.52 4.08 3.00 Expenditures 2.40 1.92 Expenditures 100% 71% 34% 25% Expenditures 20% 16% Unitso ofg governmenta areg grouped! by generalf funde expenditurest for purposesofi evaluating availablef fund balance asap percentage ofe expenditures (GF FBA9). Eachg grouping category hasit its ownn minimumt threshold. Ifyou areinthelower quartile your GFF FBA%n might bec considereda performance indicator ofconcern andy your might be askedt to communicate to us. Tot thek left are the minimum thresholdsf forN Municipalities andCounties. Median FBAa as%of Minlmum Thresholds #ofN Months FBAU using Annualized publicationd dated ofthisy workbook, priory years selfreportedn numbersn may noth beenr receivedb bythel LGCS staff, please ontact LGCS staffatl raudit@nctresurers comt tohavet thep priory year's datap populatedo ont thisw worksheet. Please MinimumT Threshold UnitResults Fundbalance: availablef for appropriationis: animportantr reservef forlocal governmentst top providecashf fiowd during periods ofc decliningr revenuesa andto beusedfore emergencies andunforeseene expenditures. Thel informationtothe lefti indicatest the amounto ofa availablec cashonhand.) Youv will alsos seet the averagef foru units ofy yours size. Notethat8.33%r representse enoughf fundbalance tocover onlyo oner month ofexpenditures. Normally,a unith hastoe either increasen revenues ord decrease expenditurestoi increasef fundb balancea avallable. Thisc calculationk looks atfundbalance: availablep plusd debt service fundbalance(f applicable)less PowellB Billrestrictedft fundbalance. Thisnumber Isthem divided byti thetotaloftotale expenditures plustr transfersc outle less bondp proceeds andless amounte expendedfor PowellE BillE Expenditures. FundE Balance Available asa a% ofE Expenditures 150.84% 00% 34%- -Averageof similaru unitsis63% 150.84% 022 Unit Name: Unit Number: Erwin 50126 2024 Minimum Threshold UnitResufts Explanationo GENERALF Therev wasa Auditv Worksheet. the General Fund has more expenditures than revenues because ofl operational issues andf fund balance was appropriated to cover the loss, the N/A continuation ofthisp practiced couldr resuitindeteriorationo ofau unit'sfundb balancel The GeneralF Fundh hasa fundd deficitv which meanst thatt theu unit's revenues and other receipts are inadequate to support Its operations. GS. 159 13/bX2) requirest thatt theb boardf fundthef fulla amounto ofapriorf fiscaly year'sdeficit inthel current fiscal year's budget. Therefore, this deficit should have beenf funded takent tos stop anyf further deterioration ofti theo overall financiald condition ofthel fund. Please letu us know #the deficit wasf fundedi in the budget, andv what actions the unit plans to take to bring the general fund balance upt to anl fundbalancef forthe GeneralF Fundir Inthez 2023budgetA ANDy yourd changeinfundbalhancey was Positiveci Changein negative. Pleases stateiffundb balancev wasusedforo operationso orcapitalp purposesir accounts 590ent theu Unit Dataf from FundB Balance available. The GeneralR Fundhadtotalf Defkit PositiveFund Balance $5,900,130 Immediately aftert the.) June 30,f fiscaly year-end. Thel lawr requiress sucha actionbel acceptablel level. Unit Name: Unit Number: mail subject" "Priory YearF FinancialD Data." Erwin 50126 thel LGC: stalt, please FiscalYear2 2024 Minimum Threshold UnftResults wdna-iaNS WATERS SEWERF FUND: 1.00 080 0,00 Cash servke dateofthisv priory years self-reportedn numbenn mayn not beenn ontact LGC staff REdwNwNawt thep priory year's financiald datap populatedo onthisy worksheet. Please Note: IF more than one performance indicator is identified, one proposed solutionn mays solvea allwatera andse sewerp performancei indicators. Quick Ratio-Water: and Sewer AQuick Ratiol lesst than1 1indicatest thatt the unit owes moresf fori its current billsl chanwhathasonk handinu unrestrictedo casha andinvestments; plusw whatisowed have difficultypayingin itso currentbills. lfthisp patterno continues, thev watera and/or Equalorgreater #DMV/OI from customers (accounts receivable). This couldi indicate thatt thef fundr mayl than1 sewer systemn maynotb bes sustainable. 0.00 2023 2024 2022 2023 N/A N/A N/A 2022 interest 2024 Minimum Threshold UnftR Results This calculation subtracts operating expenses from operating revenues. interest payments areir included. Anegativeb balancei indicatest thaty yourr are not coveringy youro operatingexpensesa andd debts servicep payments. This indicator calculatesh how manyr month'sv wortho ofe expenses (including debt principal but not depredation) a unit can pay based on the amount ofl unrestrictedcash: aty year-end. Thet typicalb billing cycleis onen month (8.33%)and one extra month usually gives local government enough casht to handle unusual monthly expenses (16.66%). This 16% would be the baren minimum necessarytokeept thef fundf frome experlencing cashf flowis issues. Ther rates structure oftheV Watera ands Sewer Funds shoulds support thec operating No expenses ofthefundwithout operatingsubsidies ortransfersf fromo otherf funds. Thisc capitala assets conditionr ratiof formula calculatest ther remainingu usefulli life.A Operating Net Income( (loss)e excludingd depreciation, Including debt N/A Unrestrictedcash/ /totale expensese excludingd depreciation,! including N/A Greatert thanzero N/A Depreciation expense is noti included the calculation but debt principal ratesa and N/A Greater than 16812 months) N/A debts servicey principal appearsy your Waters Sewer Fundh hastr transfers-inf fort thes supporto ofoperationst thata are grestert than 7. 3softhet totalo ofoperatinga andn non-operatinge expenses. Pleased discussth thep purposeo ofsucht transfers- nandifyoup plantor continuet theset Watera ands Sewer CapitalA Assets ConditionR Ratio Remalningu useful 0.50 #DN/OI #DIV/OL WDIV/0! lifeofassets thanorequalto WDM/DI remaining usefula assetv valuek lesst than 0.50 may: signalt then needton replacet the assets inthen nearf future. Unit Name: Unit! Number: emails subject" Priory YearF FinancialD Data." Erwin 50126 FiscalYear2024 Minimum Threshold UnitRasults iaadhamacMaaw ELECTRICFUND: publication datec ofthis workbook, priory years self-reportedn numbersn may notb beenr receivedbythelGC: staff, please contact LGCS staffatl suterdreswurrntew havet thepriory year's financlal datap populatedo thisy worksheet. Please Note: If more than one performance Indicator is identified, onep proposed solutionr mays solves allelectricp performancel indicators. Quick Ratio- Electric 1.00 AQuick Ratio lesst than lindicatest thatt the unito owesn mores fori itso current billsl thanw whatithasonh handinu unrestrictedcasha andi investments pluswhatis isowed have difficulty paying its current bills. Ift this pattern continues, the electric Equalorgreater "DM/0! from customers (accounts receivable). This could indicatet thatt thef fundn mayl than1 systemn maynotbes sustainable. 0.00 2023 2024 2022 2023 N/A N/A N/A 0.00 CashF Fiowir Indicators: service principalandi 11 debts servicep principal 2024 Minimum UnitRauits This calculation subtracts operating expenses from operating revenues. interest payments areinduded. Anegativel balancei indicatest that yourr ratesarel Thisi indicator calculates howr manyn month's worth ofe expenses (including debtl principal but not depreciation) a unit can pay based on the amount ofl unrestrictedc casha aty year-end. Thebpiaibilinggdele onen month (8:33%) and one extra month usually gives local government enough cash to handle unusual monthly expenses (16.66%). This 16% would be the bareminimum necessaryt tokeept mehmatromegefamahge cashf flowissues. Operating Net! Incomel Loss) excluding depreciation, including debe! N/A Unrestritedc cash/ /totalexpensese excludingde depreciation, inciuding N/A Gresterthanzero N/A Depreciation expense is noti includedt the calculation but debt principal and noto coveringy youro operatinge expenses. Greatert than1 16%(2 N/A months) N/A Unit Name: Unit! Number: Erwin 50126 FiscalYear2 2024 Target hw-aaN GENERAL PERFORMANCEI INDICATORS: fiscaly yeare mimgendkwafheominet 2024 As stewards of the public's needcurrentf the governing body is responsible forl abouty yourk localg government aswell. ensuring thatt thea auditedf financials statements are availablet tot thep public inal ResponseNot timelyr manner. Externalg groupss sucha as the North Carolina GeneralA Assembly, Required federal ands State agenciest that providef funding, and other public associations 12 What datew wast the auditr report submittedt tot thel LGC? (Note auditr reports ared duet fourr months after 10/28/2024 date.) 2024 Target Thisindicators showst thatti thel localg government didnoto collect3 3%( (orr more)ofits budgeted ad valorem taxes. This could be ani indicator of negative economic Uncellectedrevenuesa atthe3 3Xlevelrepresents erapemiasdttetae. You indicated that youe expect decrease in property value fory your next N/A propertyrevaluationt which couldresultir inlostt taxn revenue. Theunith hase expenditurest thate excedthelegalbudgeto ordinance. Thisindicates thatth theu unit's purchase orders system, contracta approvalprocess: and/or paymentp processisnoti incompliancev withl Northo Carolina Generals Statute1 159. Thisi indicatori identifies whethert theu unit! hasa anyn materlal weaknesses, signlficant deficiences, management! letter comments ori items identified ont the7 TDinfod Completedb by Audit tob Including 1055, 1056,1 1058, 9552 and 957,t thatr requirearesponse. Ves Their indicatork istod determine fanyti timed duringt the fiscalyear,t the unit was withouta aboard-a appolntedf financeo officer. board-appointedi financed officer wasnotb bonded. The budgeted adv valoremt tax (including motor vehicles) for the General Fund hadn more than 3* 13 uncollectedfortheft fiscalyeara audited.D Decreasesa arest shownb byanegativep percentage. 1.75% Lessthan3% 1.75% events, inaccurate budgeting, and/or issues with the collection process. 2024 Target Anyestimated decrease Target expenditures Noover- Target vouin Indicatedt thaty youe expectad decreaseis inp propertyy valuefory yourr next propertyn revaluation. Inyour FPICK Response Letter please discusst ther magnitude ofthed dropi inv valuation, theo overalle cause ofthel N/A dropa andhowy youp plantorecovert thek lostn revenues. 2024 No 2024 15 pidyoura audid disciosea anybudgetv violationsatthest adoptedo ordinancek level?! (YesorNo) mheu Unit hadn signlficantd deficiencies, statutory violations and/or kemsk Identified 16 onthel TDInfo CompletedbyA Auditort tabti thatsl addressedinthe FPICF Responsel Letter, Didtheu unit haveab board-appointedf finance officerorb board-appointed! Interimf financed officerthe entire fiscaly yearn requiredb byGS.1 159-24whichp providestt that" achlocalgovemment: andp public authoritys shall, atalltimes,h havea finance officera appointedb bythelocals government, publica authority, ordesignatedo official holdo office atthep pleasureo ofthes appointing! boardoro official?" (VesorNo) Wasthef financed officera orinterimf financed officerbonded, pursuanttoGS.1 159-29v whichr requiresthat thef financec officer givea truea accountinga andfaithfulp performanceb bondinanamoumtr notlessthanthe or(2)ana amounte equalto1 10%o oftheu unit'sannually! budgetedf funds, upto Ves Ves Theindicatori istod fanytimed duringth the fiscaly year, the unitwas greater $1,000,0007 (YesorNo) Unit Name: Unit Number: Erwin 50126 Fiscaly Year2 2024 Target Target hsadaaMaN GENERAL PERFORMANCE INDICATORS: 19 covenants. Electric OR fyou policy. 2024 N/A 2024 The unit had problems withd debts service payments being late and/ord didr noto complyv witht thebond theNortho CarolinaE Eastern MunkipalPower AgencyRappaariyouh havey violatedtheGs. Thisindicator: advisesw whetherorn nott theu unith hasi Issuesw witho debts service N/A paymentso orb bondc covenants. exceededthea amountsd describedinG GS 159B-39. Hyouri unitis isar memberof ember oftheE Eastem MunkcipalP PowerA Agencyt appearst thaty youh havev violatedyour Thisi indicatora advises lftherew were electrict transfersir inv violation ofG.S. 159B-39 orinv violation ofthe unit'st transfer policy. No 2024 Target Aretherea additionall Issuestheu unkts shoulda addressthata affectt thef fiscalhealtho ori internale controisof theunitt thatv werec communkatedtolt theunktd duringthea auditp presentation? Pleasel Include detallsof No Thisir indicator advises! lfanyo other Issuest that the units should. address inti theF FPIC responsel letter. cell46tothed risht andinyourF FPICResponse. TOWN OF ERWIN ERWIN, NORTH CAROLINA FINANCIAL: STATEMENTS June: 30, 2024 TOWNOFI ERWIN,NORTHO CAROLINA FINANCIAL STATEMENTS June 30, 2024 Randy L. Baker, Mayor BOARDOF COMMISSIONERS Charles] L. Byrd Rickyl Blackmon Alvestor L. McKoy Billy Turnage David] L. Nelson Timothy D.1 Marbell TOWNOFFICERS Snow Bowden, Town Manager Linda P Williams Finance Director Laurenl Evans Town Clerk Timl Morris Attorney TOWNOFI ERWIN, NORTHO CAROLINA TABLEOF CONTENTS June 30, 2024 Exhibit Page 1-3 4-9 FNANCIALSECTION: Independent. Auditor's Report Management's Discussion and Analysis Basic Financial Statements: Govemment-wide) Financial Statements: Statement ofNet Position Statement ofActivities Fund Financial Statements: 1 2 3 10-11 12 13 14 15 16 Balance Sheet - Governmental. Funds Statement ofNet] Position Govemmental. Funds Reconcilation ofthe Governmental Fund Balance Sheet tot the Statement ofRevenues, Expenditures, and Changes in Fund Balances Reconciliation ofthe Statement ofRevenues, Expenditures, and Changes in] Fund Balances ofGovemmental. Funds tot the Statement of Statement ofRevenues, Expenditures, and Changes in Fund Balances - Annual Budget and Actual- - General Fund and Community 4 Activities 5 17-18 19-37 Enhancement Fund Notes tot thel Finançial Statements RegiredSupplemental Financial Data: Schedule ofProportionate Share ofNet] Pension Liability (Asset)-Local Schedule ofContributions -Local Government Employees' Retirement Government Employees' Retirement System 38 39 40 41 System Schedule ofChanges in Total Pension Liability- Law! Enforcement Officers' Special Separation Allowance Schedule ofTotal Pension Liability as al Percentage ofCovered Payroll- Law! Enforcement Officers' Special Separation Allowance Schedule ofChanges int the Total Otherl Postemployment Benefits Liability and Related Ratios 42 Individual Fund Statements and Schedules: Budget and Actual- Generall Fund Al Woodall Park Improvements Fund American ReliefPlan! Fund Community Enhancement Fund Schedule ofRevenues, Expenditures and Changes in Fund) Balances- 43-46 47 48 49 50 51 52 53 54 55 56 57 58 Combining Balance Sheet forl emaCMemnauns Combining Statement of] Revenues, Expenditures and Changes in Fund] Balance: forl Non-Maor@byemmental Funds Schedule ofRevenues, Expenditures and Changes inl Fund Balances- Budget and Actual- SCIF Grant- - Community Building SCIF Grant Al Woodal Parking Lot Capital Project Priebel Field Special Revenuel Fund SCIF Grant- Eco-Denim. Junction Capital Project Harnett County Recreation Courts Capitall Project Other Schedules: Schedule ofAd Valorem" Taxes Receivable Analysis ofCurrent Taley-Towm.waeloy Compliance Section: Report On Internal Control Overl Financial. Reporting And On Compliance and Other Matters Based On An Audit OfFinancial: Statements Performed In Accordance With Government. Auditing Standards Schedule ofFindings andl Responses Corrective Action Plan 59-60 61-62 63 FINANCIAL SECTION Thompson, Price, Scott, Adams & Co., P.A. Post Office Box 1690 Elizabethtown, North Carolina 28337 Telephone (910)862-8129 Fax (910)862-8120 R. Bryon Scott, CPA Gregory S. Adams, CPA Alan' W. Thompson, CPA DERTIFIEE Independent Auditor's Report To the Honorablel Mayor and Members oft the Town Council Town of Erwin, North Carolina Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the' Town of Erwin, North Carolina, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the Town's basic financial In our opinion, based upon our audit, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position ofthe governmental activities, each major fund, and the aggregate remaining fundi information ofthe Town of] Erwin as of] June 30, 2024, and thei respective changes inf financial position, thereof and the respective budgetary comparisons for the General Fund and the Community Enhancement Fund for the yeart then ended in accordance with accounting principles generally accepted in the United States of America We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable toi financial audits contained in Government. Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent ofthe Town of Erwin: andt tor meet our other ethical responsibilities, in accordance with thei relevant ethical requirements relating to our audit. We believe that the audit evidence we. have obtained is sufficient and appropriate Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free Inj preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raises substantial doubt about the Town of Erwin's ability to continue as a going concern for thet twelve months beyond the finançial statement date, including any currently known information that statements as listed int the table of contents. Basis for Opinions toj provide al basis for our audit opinions. Responsibilities of Management, for the Audit of the Financial. Statements from material misstatement, whether due toi fraud or error. may raise substantial doubt shortly thereafter. Members American Institute of CPAS- - N.C. Association ofCPAS- AICPA Division of Firms Auditor's Responsibilities, for the Audit of the Financial Statements Ouro objectives aret to obtain reasonable. assurance: abouty whether the financials statements as a whole are freeofmaterial misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is al high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Governmental. Auditing Standards will: always detect material misstatement when ite exists. The risk ofnot detecting a material misstatement resulting from fraud is higher than for onei resulting from error, as fraud may involve collusion, forgery, intentional omissions, mistrepresentations, or the override of internal control. Misstatements are considered material ift therei is a substantial likelihood that, individually or in the aggregate, they wouldi influençe thej judgment madel by ai reasonable user based ont the financial statements. Inj performing an audit in accordance with GAAS and Governmental, Auditing Standards we exercised professional, judgement and maintained professional skepticism throughout the audit. identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsible to those risks. Such procedures include examining, on at test basis, evidence regarding the amounts and disclosures in the financial statements. obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate int the circumstances, but not fori thep purpose ofe expressing an opinion ont the effectiveness ofthe evaluate the appropriateness of accounting policies used and the reasonableness: of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. conclude whether, in our. judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town of Erwin's ability to continue as a going concern for a reasonable period We are required to communicate with those charged with governance regarding among other matters, the planned scope andt timing oft the audit, significant audit findings, and certain internal control-related matters that wei identified Accounting principles generally accepted ini the United States of America require that thel Management's. Discussion and Analysis (pages 4 through 9) and the Local Government Employees' Retirement System's Schedules of the Proportionate Share of the Net Pension Liability and Contributions (pages 38 and 39) the Other Post Employment Benefit (pages 40 and 41) and Law Enforcement Officers' Special Separation Allowance Schedules of Funding Progress and. Employer Contributions (page 42)respectivelyl be! presented tos supplement thel basici financial statements. Suchi information is the: responsibility of management, although not ai required part of thel basic financial statements, isr required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally acceptedi ini the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing thei information for consistency with management's responses to our inquiries, the basici financial statements, and otherl knowledge we obtained during our audit of thel basici financial statements. We doi note express an opinion or provide any assurance ont the information because the limited procedures Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the' Town of] Erwin's basic financial statements. The combining and individual fund financial statements, budgetary schedules and others schedules are presented for purposes ofadditional analysis anda arei not a required part oft thel basic finançial statements. Suchi information ist the responsibility ofr management and was derived from andi relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us. In our opinion, based on our audit, the procedures performed as described abovet the combining and individual fund financial statements, budgetary schedules and other schedules are fairly stated, in all material respects, in relation to Town ofl Erwin'si internal control. Accordingly, no such opinion is expressed. oft time. during the audit. Required. Supplementary Information do not provide us with sufficient evidence to express and opinion or provide any assurance. Supplementary. Information the basic financial statements as a whole. 2 Other Reporting Required by Government. Auditing, Standards In accordance with Government Auditing Standards, wel have alsoi issued our report dated October 14, 2024 on our consideration oft the Town ofI Erwin's internal control over: financial reporting and on our tests ofi its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose oft that report is to describe the scope of our testing ofi internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Town of Erwin's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Town ofl Erwin'sinternal control over financial reporting and compliance. 7komÉsoH. Price, Scott. Adams &Bo..PA Elizabethtown, North Carolina October 14,2024 3 TOWN OF ERWIN ERWIN, NORTH CAROLINA This page left blank intentionally MANAGEMENTS DISCUSSION. AND ANALYSIS As management of the Town of Erwin, we offer readers of the Town of Erwin's (The "Town") financial statements this narrative overview and analysis oft thei financial activities of the Town ofl Erwin fort the fiscal year ended. June 30, 2024. We encourage: readers to read thei information presented] here in conjunction with additional information that wel havei furnishedi int the' Town'si financial statements, which follow thist narrative. FINANCIAL HIGHLIGHTS The assets and deferred outflows of resources of the Town of Erwin exceeded its liabilities and deferred inflows ofr resources at the close oft the fiscal year by $12,907,195 (net position). The government's total net position increased by $2,072,567 primarily due toi increases in various As of the close of the current fiscal year, the Town's governmental funds reported ending fund balances of$10,147,156: ani increase of $2,033,764. Approximately 18j percent oft this total amount, At1 the end oft the current fiscal year, unassigned fund balance for the General Fund was $5,211,296 The Town of Erwin's long term debt consists of compensated absences, other post-employment grants and investmenti income. or $1,836,492 is nonspendable or restricted. obligation and pension obligations. OVERVIEW OF THE. FINANCIALSTATEMENIS orl 141 percent oftotal general fund expenditures for thei fiscal year. This discussion and analysis are intended tos serve as ani introduction to the Town of! Erwin's basic financial statements. The Town's basic financial statements consist of three components: 1) government-wide financial statements, 2)1 fund financial statements, and 3)r notes tot the financial statements (seel Figure 1).The basic financial statements present two different views of the Town through the use of govemment-wide statements and fund financial statements. In addition to the basic financial statements, this report contains other supplemental information that will enhance the reader'sunderstanding oft thei finançial condition ofthe Town of Erwin. Required Components of Annual Financial Report Figurel Management's Discussion and Analysis Basic Financial Statements Goverment-wide Financial Statements Fund Financial Statements Notes tot the Financial Statements Detail Summary Management! Discussion and Analysis Town of Erwin BASICFINANCIALSTATEMENTS The first two statements (Exhibits 1 and 2) in the basic financial statements are the Government-wide Financial Statements. They providel both short andl long-termi information aboutt the' Town'si financial status. The next statements (Exhibits 31 through 5) are Fund Financial Statements. These statements focus on the activities of the individual parts of the Town'sg government. These statements provide more detail than the govemment-wide statements. There are two parts to the Fund Financial Statements: 1)1 the governmental funds statements; and 2) the budgetary comparison statements for governmental funds. The next section of thel basic financial statements is the notes. The notes to the finançial statements explain in detail some of the data contained in those statements. After the notes, supplemental information is provided to show details about the Town's individual funds. Budgetary information required by thel North Carolina General Statutes also can be foundi int this part of the statements. GOVERNMENT-WIDE IMANCIALSTATEMENTS The govemment-wide financial statements are designed toj provide the reader with al broad overview of the Town of Erwin's finances, similar in format to a financial statement of a private-sector business. The government-wide statements provide short and long-term information about the Town's financial status asa The two govemment-wide: statements report the Town's net position and how it! has changed. Net position is the difference between the Town's total assets and deferred outflows of resources and total liabilities and deferred inflows ofresources. Measuring net position is one way to gauge the Town's financial condition. The government-wide statements have only one category: 1) governmental activities. The governmental activities include all of the Town's basic services such as public safety, environmental protection, transportation, parks and recreation, and general administration. Property taxes, sales taxes and State and whole. federal grant funds finance most oft these activities. FUNDFINANCIALSTATEMENTS The government-wide financial statements are on! Exhibits 1 and 2 ofthis report. The fund financial statements (see Figure 1) provide a more detailed look at the Town of Erwin's most significant activities.. Ai fundi is a grouping ofrelated accounts thati is used tor maintain control over resources thatl havel been segregated: for specific activities or objectives. The Town ofErwin, like all other governmental entities in North Carolina, uses fund accounting to ensure and reflect compliance (or non-compliance) with finance related legal requirements, such as the General Statutes or the Town's budget ordinance. All oft the Governmental Funds Governmental funds are used to account for those functions reported as governmental activities in the government-wide financial statements. All of the Town's basic services are accounted for in governmental funds. These funds focus on how assets can readily be converted into cash flow in and out, and what monies are left at year-end that will be available for spending in the next year. Governmental funds are reported using an accounting method called modified accrual accounting, which provides a short-term spending focus.. Asar result, the governmental fundi financial statements givet the reader ad detailed short-term view that helps him or her determine if there are more or less financial resources available to finance the Town's programs. The relationship between government activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is described in a funds ofTown ofl Erwin can be dividedi into one category: governmental funds. reconciliation that is aj part oft the fund financial statements. 5 Management: Discussion and Analysis Town of Erwin The Town of] Erwin adopts an annual budget for its General Fund, as required by the General Statutes. The budgeti is al legally adopted document thati incorporates input from the citizens ofthe Town, thei management oft the Town, and1 the decisions oft thel Board about whichs services toj provide and! how toj pay for them. It also authorizes the Town to obtain funds from identified sources to finance these current period activities. The budgetary statement provided for the General Fund demonstrates how well the Town complied with the budget ordinance and whether or not the Town succeeded in providing the services as planned when the budget was adopted. The budgetary comparison statement uses the budgetary basis of accounting and is presented using the same format, language, and classifications as the legal budget document. The statement shows four columns: 1) the original budget as adopted by the board; 2) the final budget as amended by the board; 3) the actual resources, charges to appropriations, and ending balances in the General Fund; and 4) the difference or variancel between the final budget andt the actual resources and charges. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the Other Information - In addition to the basic financial statements and accompanying notes, this report includes certain required supplementary information concerning the Town ofl Erwin's progress ini fundingi its obligation toj provide pension and other post-employment benefits toi its employees. Required supplementary Interdependence with Other Entities: The Town depends on financial resources flowing from, or associated with, both the Federal Government and the State of North Carolina. Because ofthis dependency, the' Towni is subject to changes in specific flows ofin intergovernmental revenues based on modifications to financial statements begin on page 19 oft this audit report. information can be found beginning on page 38 oft this report. Federal and State laws and Federal and State appropriations. Government-Wide Financial Analysis Town ofl Erwin's Net Position Figure2 Governmental. Activities 2024 $ 10,589,487 $ 9,340,516 4,433,709 15,023,196 841,082 2,033,721 341,698 2,375,419 576,032 4,433,709 1,827,629 6,645,857 12,907,195 $_ 10,834,628 2023 4,284,252 13,624,768 867,400 1,930,075 1,164,887 3,094,962 562,578 4,284,252 859,686 5,690,690 Assets Current and other assets: Capital Assets Totalassets DeferredOutlows of] Resources Liabilities Long-term liabilities outstanding Other liabilities Totall liabilities Deferredinflows ofresources Net Position Net Investment: in Capital Assets Restricted UnrestrictedDeficil) Totall Net Position 6 Management. Discussion and Analysis Town of] Erwin As noted earlier, net position may serve over time as one useful indicator of a government's financial condition. The assets and deferred outflows of resources of the Town of Erwin exceeded liabilities and deferred inflows of resources by $12,907,195 as of. June 30, 2024. The Town's net position increased by $2,078,199 for the fiscal year ended June 30, 2024. However, aj portion, $4,433,709 (34%6), reflects the Town's neti investment in capital assets (e.g. land, buildings, machinery, ande equipment). The Town ofE Erwin uses these capital assets toy provide services to citizens; consequently, these assets arei not available fori future spending. Although the Town of Erwin's net investment in capital assets is reported net oft the outstanding related debt, the resources needed to repay that debt must be provided by other sources, since the capital assets cannot be used to liquidate these liabilities. An additional portion oft the Town ofErwin's net position ofS1,827,629(149, represents resources that are: subject to external restrictions on how they may be used. Several particular aspects of the Town's financial operations influenced the increase in total unrestricted The remaining balance of $6,645,857( (52%) is unrestricted. governmental type net position: Revenues increased including ad valorem taxes and grant revenue. Expenditures increased to satisfy grant requirements. Investment income increased. Town of Erwin's Changes in Net Position Figure3 Governmental. Activities 2024 2023 Revenues Program Revenues Charges for Services Grants and) Entitlements Generall Revenue Property Taxes Grants and contributions not restricted to specific programs Other Taxes Investment Earnings Other Total Revenues Expenses General Government Public Safety Transportation Economic Development Environmentall Protection Cultural andl Recreation TotalExpenses Increase(Decrease), in Net Position Net Position, beginning Net Position, ending $ 718,337 $ 702,374 1,962,832 1,799,672 1,386,956 377,721 210,695 71,571 6,527,784 890,713 1,614,317 1,000,742 109 343,400 605,936 4,455,217 2,072,567 10,834,628 12,907,195 $ 10,834,628 899,866 1,767,254 1,235,081 372,981 118,307 53,000 5,148,863 767,106 1,462,833 760,495 299,340 547,959 3,837,733 1,311,130 9,523,498 Governmental Activities - Governmental activities increased the Town of Erwin's net position by $2,072,567, thereby accounting for all of the increase in thei net position of the Town of Erwin. Key elements oft thei increase were mentioned above. 7 Management Discussion and. Analysis Town of Erwin FINANCIAL ANALYSIS OF THE TOWN'SFUNDS As noted earlier, the Town of Erwin uses fund accounting to ensure and demonstrate compliance with Governmental Funds. The focus of the Town of] Erwin's governmental fundsi is to provide information on near-term inflows, outflows, and balances of usable resources. Such information is useful in assessing the The general fund is the chief operating fund of the Town of Erwin. At the end of the current fiscal year, unassigned fund balance of the Generall Fund was $5,211,296, while total fund balance reached $5,900,130. At June 30, 2024, the governmental funds of Town of Erwin reported a combined fund balance of $10,147,296 witha a neti increase in fund balance of$2,033,764. Included in this change ini fund balance is an General Fund Budgetary Highlights. During the fiscal year, the Town revised the budget on several occasions. Generally, budget amendments fall into one of three categories: 1) amendments made to adjust the estimates that are used to prepare the original budget ordinance once exact information is available; 2) amendments made tor recognize newi funding amounts from external sources, such as Federal and State grants; finance-related. legal requirements. Town of Erwin'sf financing requirements. increase ini fund balance oft the General Fund. and 3)increases in appropriations that become necessary to maintain services. CAPITAL. ASSET AND DEBT ADMINISTRATION Capital assets. The Town of Erwin's investment in capital assets fori its governmental activities as of June 30,2 2024, totals $4,433,709 (net ofa accumulated depreciation). These assetsi includel buildings, machinery and equipment, and vehicles. Major capital asset transactions during the fiscal year include the following: Park parking loti improvements. The addition ofv various equipment including leaft trucks. Town ofl Erwin's Capital Assets (net of depreciation) Figure 4 Governmental, Activities 2024 $ 191,207 $ 191,207 124,122 1,313,803 948,328 1,634,805 221,444 4,433,709 2023 659,534 1,382,499 8,347 718,745 1,096,657 227,263 4,284,252 Land Construction in Progress Buildings and Improvements Equipment Vehicles and Motorl Equipment Infrastructure Land Improvements Additional information ont the Town's capital assets can be found! beginning on page 25 ofthel Basic Financial Statements. 8 Management Discussion and Analysis Town of Erwin Long-term Debt. As of. June 30, 2024, the Town of] Erwin has no outstanding debt. North Carolina general statues limit thea amount ofg general obligation debt thata al unit ofg government can issue to 81 percent oft thet total assessed value oft taxable property located within that government's 's boundaries. The legal debti margin fori the Town of Erwini is $29,265,781. The Town didi not issue any bonds during the fiscal year 2024-2025. Additional information regarding the Town's long-term debt can be found beginning on page 36. ECONOMIC FACTORS AND NEXT YEAR'S! BUDGETS ANDI RATES The following key economic indicators reflect the growth and prosperity oft the Town ofl Erwin. The Town of Erwin's capability to grow its tax base while implementing a fiscally conservative policy has allowed thei tax rate tor remain consistent, although the County Revaluation hasi increased the overall tax base withi increases to] property values within the" Town, and serves as ani indicator of thej progressing economy inl Erwin. The upcoming year'st tax rates are unchanged at $0.48t townt tax The' Town of Erwin must seek to diversify its economy and move from its roots of manufacturing reliance. Efforts are underway to expand and enhance the commercial growth corridor of421 as The Town will continually need to closely examine all areas ofr revenues and expenditures as part ofs standard rate and $.095 fire protection rate. well as a downtown revitalization initiative. operations of procedure toi increase unrestricted revenue. Governmental. Activities - General Fund BUDGETHIGHLIGHTS FOR THE FISCAL YEAR ENDING JUNE: 30,2025 The Town of Erwin did not change the ad valorem tax rate with the 2024-2025 adopted budget. Due to external economic factors, the' Town of Erwin does not expect increases in the collection of revenues from state shared sales or franchise taxes. The lack of expected increases is anticipated to lead to thes sustaining ofb budgeted revenue for the fiscal year ending. June 30, 2025. The Town will use these revenues to finance Budgeted expenditures in the General Fund are expected to remain relatively consistent withj previous levels due to continued and focused efforts by management to contain expenses and continue to deliver necessary programs currently in place. services. REQUESTS. FORI INFORMATION This report is designed toj provide an overview oft the Town ofl Erwin's finances for those with an interest in this area. Questions concerning any of the information found in this report or requests for additional information should be directed to Snow Bowden, Town) Manager, Town of] Erwin, P.O. Box 459, Erwinl NC 28339. Mr. Bowden can be reached by e-mail at owmamgegenwinmeors or by telephone at (910)897- 5140.. Additional information: about the uniti may be obtained from the' TownofErwin website: at www.erwin- nc.org. 9 Basic Financial Statements Town ofl Erwin, North Carolina Statement ofl Net Position June 30, 2024 Exhibit 1 Governmental Activities $ 8,663,517 1,293,516 46,955 8,266 279 22,527 452,318 10,487,378 102,109 315,329 4,118,380 4,433,709 4,535,818 15,023,196 660,600 180,482 841,082 179,887 91,409 76,034 963,924 727,105 278,113 64,579 2,381,051 Assets Current assets: Cash & cash equivalents Restricted cash Taxes receivable (net) Accrued: interest receivable ont taxes Accounts receivable (net) Lease Receivable Duei from other governments Total current assets Non-current Assets: Lease Receivable Capital Assets: Land and nondepreciable improvements Other capital assets, net of depreciation Total capital assets Total Non-current Assets Total Assets Deferred Outflows of Resources Pension deferrals OPEB deferrals Total Deferred Outflows of] Resources Liabilities Current liabilities: Accounts payable and accrued liabilities Unearned revenue Current portion ofl long-term debt Long-term Liabilities: Net pension liability-LGERS Total OPEB liability Total pension liability-LEO Duei ini more than one year Total liabilities 10 The notes to the financial statements are ani integral part of this statement. Town of Erwin, North Carolina Statement ofl Net Position June 30, 2024 Exhibit1 Governmental Activities Deferred Inflows of] Resources Prepaid taxes Leases Pension deferrals OPEB deferrals Net Position Net] Investment in capital assets Restricted for: Stabilization by state: statute Streets Cultural and) Recreation Economic Development Public safety Unrestricted Totall Net Position 41 115,773 155,675 304,543 576,032 4,433,709 625,522 232,642 465,979 499,891 3,595 6,645,857 12,907,195 11 The notest tot the financial statements are an integral part oft this statement. TOWN OF ERWIN ERWIN, NORTH CAROLINA This page left blank intentionally Town of Erwin, North Carolina Statement of Activities Fort the Year Ended. June 30, 2024 Exhibit2 Net (Expense) Revenue and Changes inl Net Position Governmental Activities Program Revenues Operating Grants Capital Grants and Contributions Contributions Charges for Service 49,662 $ 149,374 $ 85,229 12,656 497,836 72,954 718,337 and Functions/Programs Primary Government: Governmental. Activities: General Government Public Safety Transportation Economic Development Environmental Protection Cultural andl Recreation Expenses $ 890,713 $ 1,614,317 1,000,742 109 343,400 605,936 $ 500,000 623,114 1,123,114 (691,677) (1,203,045) (710,031) 499,891 154,436 176,378 (1,774,048) 326,043 278,055 86,246 839,718 Total Governmental. Activities $ 4,455,217 General Revenues: Taxes: Property taxes, levied for general purpose Other taxes Grants and contributions not restricted to specific programs Investment earnings, unrestricted Miscellaneous, unrestricted Net position beginning Net position ending 1,799,672 377,721 1,386,956 210,695 71,571 3,846,615 2,072,567 10,834,628 12,907,195 Total general revenues Change ini net position 12 Ther notes tot the: financial statements are ani integral part oft thiss statement. Town of Erwin, North Carolina Balance Sheet Governmental. Funds June 30, 2024 Major Funds AI Woodall Park Exhibit3 American Community Relief 91,409 Total Funds Enhancement Non-Major Governmental $ 2,624,522 $ 32,866 $ 8,663,517 General Fund Improvements Plan] Fund $ 5,564,149 $ 441,980 $ 236,237 46,955 279 452,318 6,299,938 179,887 172,925 352,812 46,955 41 46,996 Fund Funds Assets Cash ando cashe equivalents Restricted cash Receivables (net): Taxes Accounts Due from other funds Due from other govemments Lease Receivable Total assets Liabilities Accounts payable and accrued liabilities Unearnedi revenue Due to other funds Total liabilities Deferred inflows of resources Property tax receivable Prepaid taxes Leases Total deferred inflows ofresources Fund] Balances: Non Spendable Leases Restricted Stabilization by State Statute Streets Cultural and Recreation Economic Development Public Safety Committed Cultural and Recreation Capital Projects Unassigned Total fund balances Total liabilities, deferred inflows ofresources and fund balances 965,870 1,293,516 50,000 46,955 279 172,925 452,318 124,636 2,193 444,173 120,732 124,636 91,409 2,869,890 1,048,736 10,754.146 179,887 91,409 172,925 444,221 46,955 41 115,773 162,769 8,863 625,522 232,642 465,979 499,891 3,595 474,846 2,624,522 5,211,296 91,409 91,409 115,773 115,773 8,863 120,732 452,597 232,642 3,595 5,211,296 5,900,130 2,193 50,000 465,979 499,891 32,866 441,980 444,173 2,624,522 2,754,117 1,048,736 10,147,156 6,299,938 $ 444,173 $ 91,409 $ 2,869,890 $ 1,048,736 $_ 10,754,146 13 The notes tot the financial statements are an integral part of this statement. Town ofErwin, North Carolina Balance Sheet Governmental Funds June 30, 2024 Exhibit 3, continued Amounts reported for governmental activities in the Statement of Net Position (Exhibit 1)are different because: Total Fund Balance, Governmental: Funds Capital assets used in governmental activities are not financial resources: and therefore are not reported in the funds. Gross capital assets at! historical cost Accumulated depreciation Deferred outflows of resources related to pensions are not reported int the funds Deferred outflows of resources related to OPEB are not reported in the funds Other long-term assets (accrued interest receivable from taxes) are nota available toj pay for current-period expenditures and therefore are inflows or resources. Eamed revenues considered deferred inflows ofresources ini fund statements. Long-term liabilities usedi in governmental activities are not financial uses and therefore are not reported ini the funds. Compensated absences Net pension liability Total OPEBI liability Total pension liability Deferred inflows ofresources related to pensions are not reported in the funds Deferred: inflows ofr resources related to OPEB are not reported in the funds Net position of governmental activities 10,147,156 4,433,709 660,600 180,482 8,266 46,955 (140,613) (963,924) (727,105) (278,113) (155,675) (304,543) 12,907,195 $ 8,745,831 (4,312,122) 14 The notes to the financial statements are an integral part oft this statement. Town ofE Erwin, North Carolina Governmental Funds Fort the Year Ended] June: 30, 2024 Major Funds Al Woodall American Community Park Exhibit4 4 Statement of Revenues, Expenditures, and Changesi in] Fund Balance Total Funds 1,779,355 377,721 1,386,956 16,710 695,427 309,766 816,976 1,622,543 609,387 365,702 434,755 109 624,231 General 1,779,355 $ 377,721 16,710 671,054 263,896 4,664,654 667,602 1,297,815 609,387 255,294 434,755 447,421 3,712,274 952,380 16,000 16,000 968,380 4,931,750 5,900,130 $ 444,173 $ Relief Enhancement Non-Major Governmental Fund Improvements Plan fund Fund Funds Revenues Ady valorem taxes Othert taxes andl licenses Unrestricted: intergovernmental 1,386,956 Restrictedi intergovernmental 168,962 Permits and fees Sales and services Other revenues Total revenues Expenditures Current: General government Public: safety Transportation Public works Environmental) protection Eçonomic development Cultural andr recreation Total expenditures Revenues over (under) expenditures Other financing sources (uses): Transfers from other funds Total other financing sources (uses) Net changei ini fund balance Fund balances, beginning Fund balances, ending $ 649,456 649,456 149,374 324,728 110,408 64,946 649,456 1,123,114 1,941,532 6,200 24,373 10,670 29,000 29,000 35,043 1,129,314 6,507,467 109 111,864 111,973 4,473,703 29,000 35,043 1,017,341 2,033,764 (16,000) (16,000) 2,735,074 29,000 415,173 19,043 1,017,341 2,033,764 2,754,117 $ 1,048,736 $ 10,147,156 31,395 8,113,392 15 Ther notes tot the financial statements are ani integral part oft this statement. Town of] Erwin, North Carolina Governmental Funds Fort the Year Ended. June 30, 2024 Exhibit 4, Continued Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance to the Statement of Activities Amounts reported for governmental activities in the statement of activities are Net changes in: fund balances total governmental funds different because: $ 2,033,764 Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost oft those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation int the current Capital outlay expenditures that were capitalized Depreciation expense for Governmental assets period. 591,734 (442,277) 179,287 18,348 24,836 20,317 Contributions to the pension plan int the current fiscal year are not included Benefit payments paid and administrative expense for thel LEOSSA are not OPEBI Benefit payments paid and administrative expense madei ini the current) year are noti included ont the Statement of Activities Revenues int the statement ofa activities that do not provide current financial resources are not reported as revenues int the funds. Change in unavailable revenue: for taxi revenues Some expenses reported in the statement ofa activities do not require the use ofcurrent financial resources and, therefore, are not reported as ont the Statement of Activities included ont the Statement of Activities expenditures in governmental funds. Compensated absences Pension expenses Other postemployment benefits expenses Net pension obligation (34,266) (20,663) (39,975) (258,538) 2,072,567 Total changes ini net position ofs governmental activities. 16 The notes tot the financial statements are an integral part oft thiss statement. Town ofErwin, North Carolina General Fund Budget and Actual Fort the Year Ended. June 30, 2024 Exhibit 5 Statement ofl Revenues, Expenditures, and Changes in Fund Balance- General Fund Variance With Final Budget- Positive (Negative) 30,560 15,721 320,743 (75,153) 1,510 20,472 115,828 429,681 217,104 113,424 51,212 15,959 79,332 142,668 619,699 1,049,380 (81,000) (81,000) 968,380 Actual Amounts Original Final Revenues: Ad valorem taxes Other taxes and licenses Unrestricted intergovernmental Restricted intergovermmental Permits andi fees Sales and services Other revenues Total revenues Expenditures: Current: General government Public safety Transportation Public works Environmental protection Cultural and recreation Total expenditures Revenues over (under) expenditures Other financing sources (uses): Transfers from other funds Fund balance appropriated Net Change in) Fund) Balance Fund balances, beginning Fund balances, ending $ 1,679,995 $ 1,748,795 $ 1,779,355 $ 332,500 1,039,439 150,000 519,470 262,412 3,983,816 1,008,657 1,725,234 671,508 163,542 487,733 576,598 4,633,272 (649,456) 649,456 649,456 362,000 1,066,213 244,115 15,200 650,582 148,068 4,234,973 884,706 1,411,239 660,599 271,253 514,087 590,089 4,331,973 (97,000) 16,000 81,000 97,000 377,721 1,386,956 168,962 16,710 671,054 263,896 4,664,654 667,602 1,297,815 609,387 255,294 434,755 447,421 3,712,274 952,380 16,000 16,000 968,380 $ 4,931,750 5,900,130 Total other financing sources (uses) $ 17 Thei notes to the: financial statements are an integral part oft this statement. Town ofl Erwin, North Carolina Statement of Revenues, Expenditures, and Changes in Fund Balance- Community Enhancement Fund Budget and Actual For the Year Ended. June 30, 2024 Exhibit 5 Community Enhancement Fund Variance With Final Budget- Positive (Negative) $ Actual Amounts $ Original $ Final $ Revenues: Adv valorem taxes Other taxes and licenses Unrestricted intergovernmental Restricted intergovernmental Permits and fees Sales ands services Other revenues Total revenues Expenditures: Current: General government Public safety Transportation Public works Environmental protection Cultural andi recreation Total expenditures Revenues over (under) expenditures Other financing sources (uses): Transfers from other funds Transfers to other funds Fund balance appropriated Net Change inl Fund Balance Fund balances, beginning Fund balances, ending 10,000 10,000 10,000 10,000 24,373 10,670 35,043 14,373 10,670 25,043 10,000 (10,000) (10,000) 10,000 (16,000) 6,000 (10,000) 35,043 (16,000) (16,000) 19,043 $ 2,735,074 2,754,117 25,043 (6,000) (6,000) 19,043 Total other financing sources (uses) 18 Thei notes to the financial statements are an integral part of this statement. TOWN OF ERWIN ERWIN, NORTH CAROLINA This page left blanki intentionally TOWN OFI ERWIN, NORTH CAROLINA Notes tot thel Financial Statements Fort the Fiscal Year Ended. June 30, 2024 NOTE1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Town of Erwin conform to generally accepted accounting principles as applicable to The Town of Erwin (the Town) is a municipal corporation that is governed by an elected mayor and a six-member Government-wide. Statements: The statement ofr net position and the statement of activities display information about the primary government. These statements include the financial activities of the overall government. Eliminations havel been made to minimize the double counting of internal activities. These statements distinguish between the, governmental: and business-type activities of the Town. Governmental activities generally are financed through taxes, intergovermmental revenues, and other non-exchange transactions. Business-type activities are financed in whole ori inj part by fees charged The statement of activities presents a comparison between direct expenses and program revenues: for each function oft the Town's governmental activities. Direct expenses are those that are specifically associated with aj program or function and, therefore, are clearly identifiable to a partiçular function. Indirect expense allocations that have been made in the funds have been reversed for the statement of activities. Program revenues include (a) fees and charges paid by the recipients of goods or services offered' by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, Fund Financial Statements: The fund financial statements provide information about the Town's funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. The Town does not have any governments. The following is a summary ofther more significant accounting policies: A. Reporting Entity council. B. Basis ofPresentation to external parties. The" Town does not have any business-type activities. including all taxes, are presented as general revenues. proprietary funds. The Town does not have any fiduciary funds to report. The" Town reports the following major governmental funds: General Fund - The General Fund is the general operating fund of the Town. The General Fund accounts for all financial resources of the general government except those required to be accounted for in another fund. The primary revenue sources are ad valorem taxes, State grants, and various other taxes and licenses. The primary expenditures are for AL Woodall Park Improvement Capital Project This fund was created for the capital project activity within the parks American. Relief Plan Grant Project Fund- - Which reports the activity of American Relief Plan Act funding received. Community Enhancement. Fund- This fund was created from the sale proceeds of the Town's water and sewer system. Earnings and cell tower lease willl be: accumulated and expended for community enhancement projects within the Town. SCIF Grant Community Building Capital Project- This fund is used to account for grant funds and local donations for SCIF Grant Woodall Park Parking Lot Capital Project - This fund was created for the park improvements and Priebe Field Capital Project This fund is used to account for grant funds and local donations for the improvement ofa public safety, street maintenance and construction,' sanitation services and cultural and recreation. andi recreation: facilities. The" Town reports thei following non-major governmental funds: thei improvement oft the community building. expansion area within the parks and recreation facilities. Town recreation park. 19 TOWN OFI ERWIN, NORTH CAROLINA Notes to thel Financial Statements Fort the Fiscal Year Ended. June 30, 2024 SCIF Grant Eco-Denim. Junction Capital Project - This fund is used to account for grant funds and local donations for Harnett County Recreation Parks Capital Project This fund is used to account for grant funds for the addition of In accordance with North Carolina General Statutes, all funds of the Town are maintained during the year using the Govermment-wide Financial Statements. The govemment-wide financial statements are reported using the economic resources measurement focus. The government-wide financial statements are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the timel liabilities are incurred, regardless of when the related cash flows take place. Non exchange transactions, in which the Town gives (or receives) value without directly receiving (or giving) equal valuei in exchange, include property taxes, grants, entitlements, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for whichi the taxes are levied. Revenue from grants and donations is recognizedi int the fiscaly year in which all eligibility requirements havel beens satisfied. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general Governmental Fund Financial Statements. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of general long-term debt and acquisitions under leases and IT subscriptions are reported The Town considers all revenues available if they are collected within 90 days after year-end, except for property taxes. Ad valorem taxes receivable are not accrued as a revenue because the amount is not susceptible to accrual. At. June 30, taxes receivable for property other than motor vehicles are materially past due and are not considered to be an available resource toi finance the operations of the current year. Also, as of September 1,2 2013, State law altered the procedures for the assessment and collection of property taxes on registered motor vehiçles in North Carolina. Effective with this change in the law, the State of North Carolina is responsible for billing and collecting the property taxes on registered motor vehicles on behalf of all municipalities and special tax districts. Property taxes are due when vehicles are registered. The billed taxes are applicable to the fiscal year in which they are received. Uncollected taxes that were billedi inj periods prior to September 1,2 2013 and for limited registration plates ares shown as ai receivable in these financial Sales taxes and certain intergovemmental revenues, such as thel beer and wine tax, collected and held! by the State at year- end on behalf oft the Town are recognized as revenue. Sales taxes are considered a shared revenue fort the Town ofE Erwin because the tax is levied by Harnett County and then remitted to and distributed by the State. Most intergovemmental revenues and sales and services are not susceptible to accrual because generally they are noti measurable until received in cash. All taxes, including those dedicated for specific purposes are reported as general revenues rather than program revenues. Under the terms of grant agreements, the Town funds certain programs by a combination of specific cost- reimbursement grants, categorical block grants, and general revenues. Thus, when program expenses are incurred, therei is both restricted and unrestricted: net position available to finance the program. Itis the Town's policy toi first apply cost- reimbursement grant resources tos such programs, followed by categorical block grants, and then general revenues. The Town's budgets are adopted as required by thel North Carolina General Statutes. An annual budget is adopted for the General Fund and the Community Enhancement Fund. All annual appropriations lapse at fiscal year-end. Project ordinances are adopted for the Capital Project Funds. All budgets are prepared using the modified accrual basis of accounting. Expenditures may not legally exceed appropriations at the functional level for all annually budgeted funds thei improvement ofl land owned byt the' Town. recreation courts at the Town recreation park. Measurement Focus and Basis of Accounting modified accrual basis of accounting. revenues include all taxes. asc other financing sources. statements and are offset by deferred inflows ofr resources. D. Budgetary Data 20 TOWN OFI ERWIN, NORTH CAROLINA Notes tot the Financial Statements For thel Fiscal Year Ended. June 30, 2024 and at the project level for the multi year funds. The Town manager is authorized by the budget ordinance to transfer appropriations between functional areas within a fund up to 5 percent of the appropriated monies for the department where the allocation is reduced; however, any revisions that alter the total expenditures of any fund or exceed the 5 percent limitation must be approved the governing board. During the year, several amendments to the original budget were necessary. E. Assets.] Liabilities. Deferred Outflows/Inflows of! Resources and] Fund] Equity Deposits and] Investments- All deposits oft the Town are madei inl board-designated official depositories and are secured as required by State law [G.S. 159-31]. The Town may designate, as an official depository, any bank or savings association whose principal office is located in North Carolina. Also, the Town may establish time deposit accounts such as Now State law [G.S. 159-30(ç)] authorizes the Town to invest in obligations of the United States or obligations fully guaranteed both as to principal andi interest by the United States; obligations of the State ofl North Carolina; bonds and notes ofa any North Carolinal local government or public authority; obligations of certain non-guaranteed federal agencies; certain high quality issues of commercial paper and bankers' acceptances and thel North Carolina Capital Management Trust (NCCMT). The Town's investments are reported at fair value. The NCCMT Government Portfolio, a SEC- registered (2a-7)money market mutual fund, is measured at fair value. Because the NCCMT Government has a weighted average maturity ofl less than 90 days, they are presented as ani investment with a maturity of1 less than 61 months. In accordance with State law, the Town has invested in securities which are callable and which provide for periodic interest ratei increases in specific increments until maturity. These investments are reported at fair value as determined by Cash and Cash] Equivalents The' Town pools money from several funds to facilitate disbursement andi investment and to maximize investment income. Therefore, all cash and investments are essentially demand deposits and are considered Restricted Cash- -Powell Bill funds are classified as restricted cash because they can be expended only for the purposes of maintaining, repairing, constructing, reconstructing or widening of local streets per G.S. 136-41.1 through 136- 41.4. ARPA and SCIF grant funds provided the grant funding in advance oft the related expenditures, all unspent cash ist restricted. Controlled substance tax and other forfeiture funds are held as restricted until expended for that purpose. and SuperNow accounts, money market accounts, and certificates ofc deposit. quoted market prices. cash and cash equivalents. Governmental. Activities Generall Fund Streets ARPA Funding SCIF Grant Public Safety Total Governmental Activities $ 232,642 91,409 965,870 3,595 1,293,516 Ad Valorem Taxes Receivable In accordance with State law [G. S. 105-347 and G. S. 159-13(a)), the Town levies ad valorem taxes on property other than motor vehicles on July 1s, the beginning of the fiscal year. The taxes are due on September 15 (lien date); however, interest does not accrue until the following January 6th. These taxes are based on the assessed values as of. January 1, 2023. As allowed by State law, the Town has established a schedule of discounts that applyt to taxes that are paid prior tot the due date. Int the Town's General Fund, ad valorem tax revenues are reported net of Allowance for Doubtful Accounts All receivables that historically experience unçollectible accounts are shown net ofan allowance for doubtful accounts. This amount is estimated by analyzing the percentage of receivables that were written such discounts. offi inj prior years. 21 TOWN OFI ERWIN, NORTHO CAROLINA Notes to the Financial Statements Fort thel Fiscal Year] Ended. June 30, 2024 Lease Receivable The Town's lease receivable is measured at the present value of lease payments expected to be received during the lease term. Under the lease agreement, the Town may receive variable lease payments that are dependent upon the lessee's revenue. The variable payments are recorded as an inflow of resources in the period the A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the initiation of thel leasei in an amount equal to thei initial recording oft the lease receivable. The deferredi inflow ofr resources is amortized payment is received. ona as straight-line basis over the term ofthe lease. Inventory The Town does not maintain any inventories. Capital Assets Capital assets are defined by the government as assets with an initial, individual cost of more than a certain cost and an estimated useful life in excess of two years. Minimum capitalization costs are as follows: land, $5,000; buildings, improvements, and other plant and distribution systems, $5,000; infrastructure, $5,000; furniture and equipment, $5,000; and vehicles, $5,000. Donated capital assets received prior to June 30, 2015 are recorded at their estimated fair value at the date of donation. Donated capital assets received after. June 30, 2015 are recorded at acquisition value. All other purchased or constructed capital assets are reported at cost or estimated historical cost. General infrastructure assets acquired prior to. July 1, 2003, consist of the road network and water and sewer system assets that were acquired or that received substantial improvements subsequent to July 1, 1980, and are reported at estimated historical cost using deflated replacement cost. The cost ofnormal maintenance and repairs that do not add Capital assets are depreciated using the straight-line method over the following estimated useful lives: tot the value oft the asset or materially extend assets' lives are not capitalized. Estimated UsefulLives 30 40 20 5 10 50 Asset Class Infrastructure Buildings Other Improvements Motor Vehicles Equipment & Furniture Plant Assets Deferred Outflows/nflows. of Resources In addition to assets, the statement of financial position will sometimes report as separate section for deferred outflows of resources. This separate financial statement element, Deferred Outflows of Resources, represents a consumption of net position that applies to a future period and so will not be recognized as an expense or expenditure until then. The" Town has one item that meets this criterion, pension deferrals for the 2024: fiscal year. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows ofr resources. This separate financial statement element, Deferred. Inflows of Resources, represents an acquisition of net position that applies to a future period and so will not be recognized as revenue until then. The Town has several items that meet the criterion for this category prepaid taxes, property taxes receivable, leases and pension deferrals for Long-Term Obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities int the applicable governmental activities fund type statement ofr net position. Int the fund financial statements for governmental fund types, the face amount of debti issuedi is reported as other financing Compensated Absences The vacation policy oft the Townj provides for the accumulation of up tot thirty (30) dayse earned vacation leave with such leavel being fully vested when earned. For the Town's government-wide: funds, an expense and al liability for compensated absences and the salary-related payments are recorded as the leave is earned. The Town has assumed ai first in-first out method of using accumulated compensated time. The current portion of the accumulated vacation pay is not consideredi to be material; therefore, no expenditure or liability has been reported in the government the 20241 fiscal year. sources. wide. 22 TOWN OFI ERWIN, NORTH CAROLINA Notes tot the Finançial Statements For the Fiscal Year Ended. June 30, 2024 The Town's 's sick leave policy provide for an unlimited accumulation of earned sick leave. Sick leave does not vest, but any unused sick leave accumulated at the time of retirement may be used in the determination of length of service for retirement benefit purposes. Since the Town does not have any obligation for the accumulated sick leave untili iti is taken, no accrual: for sick leave has been made. Net] Position/Fund Balances Net Position Net position in government-wide fund financial statements is classified as net investment in capital assets; restricted; and unrestricted. Restricted net position represents constraints on resources that are either externally imposed by creditors, grantors, contributors, orl laws or regulations of other governments or imposed by law through state statute. Fund Balances - In the governmental fund financial statements, fund balance is composed of five classifications designed to disclose the hierarchy of constraints placed on how fund balance can be spent. The governmental fund types classify fund balances as follows: Nonspendablel Fund Balance This classification includes amounts that cannot be spent because they are either (a) not Restricted Fund Balance - This classification includes amounts that are restricted to specific purposes externally in spendable form or (b)1 legally or contractually required tol be maintained intact. imposed by creditors or imposed by law. Restricted for Stabilization by State Statute - North Carolina G.S. 159-8 prohibits units of government from budgeting or spending aj portion of their fund balance. This is one ofs several statutes enacted by the North Carolina State Legislature in the 1930's that were designed to improve and maintain the fiscal health ofl local government units. Restricted by State statute (RSS), is calculated at the end of each fiscal year for all annually budgeted funds. The calculation in G.S. 159-8(a) provides a formula for determining what portion of fund balance is available for appropriation. The amount of fund balance not available for appropriation is whati is known as "restricted by State statute". Appropriatedj fund balance in any, funds shall not exceed the sum of cash and investments minus the sum of liabilities, encumbrances, and deferred revenues arising. from cash receipts, as those figures stand at the close ofthe fiscal year next preceding the budget. Per GASB guidance, RSS is considered a resource upon which a restriction is "imposed by law through constitutional provisions or enabling legislation." RSS is reduçed by inventories and prepaids as they are classified as nonspendable. Outstanding Encumbrances are included within RSS. RSS isi included asa component of Restricted Net position and] Restricted fund balance on the face oft the balance sheet. Restricted for Streets Powell Bill portion of fund balance that is restricted by revenue source for street construction and maintenance expenditures. This amount represents the balance of the total unexpended Restricted for Public Safety - portion of fund balance that is restricted by the funding source, which Restricted for Cultural and Recreation -1 portion of fund balance resulting in unspent grant funds for use at Restricted for Cultural and Recreation - portion of fund balance resulting in unspent grant funds for use in Powell Bill funds. provides the Town with aj portion of drug seizure money. the Town's parks. renovating an oldi mill. 23 TOWN OF ERWIN, NORTH CAROLINA Notes tot the Financial Statements For the Fiscal Year Ended. June 30, 2024 Committed Fund Balance - portion of fund balance that can only be used for specific purposes imposed by majority vote by quorum ofTown of Erwin's governing body (highest level of decision-making authority). The governing body can, by adoption of an ordinance prior to the end of thei fiscal year, commit fund balance. Once adopted, the limitation imposed byt the ordinance remains inj place until as similar action is taken (the adoption ofanother ordinance) to remove orr revise the limitation. Committed for Cultural and Recreation - portion of fund balance committed by the Board for parks and Capital Projects - portion of fund balance committed' by thel Board for capital improvements. Assigned fund balance 1 portion of fund balance that Town ofl Erwini intends to usei fors specific purposes. recreation expenditures. Subsequent year's expenditures - portion of fund balance that is appropriated in the next year's budget that is not already classified inj restricted or committed. The governing body approves the appropriation and any modifications to the original budget. Unassigned fund balance the portion of fund balance that has not been restricted, committed, or assigned to specific The Town of Erwin adheres to thel North Carolina Local Government Commission's recommendation ofa minimum fund balance for the general fund which instructs management to conduct thel business of the Town in such ai manner that available fund balance does not go below eight percent ofl budgeted expenditures. Any portion oft the general fund balance in excess of 8% of budgeted expenditures may be appropriated. for one-time expenditures and may not! be used Defined Benefit Cost-Sharing Plans For purposes of measuring the net pension (asset)liability, deferred outflows of resources and deferred inflows of resources related toj pensions, and pension expense, information about the fiduciary net position oft thel Local Governmental Employees' Retirement System (LGERS) and additions to/deductions from LGERS' fiduciary net position have been determined on the same basis as they are reported by LGERS. For this purpose, plan member contributions are recognized in the period in which the contributions are due. The Town of Erwin's employer contributions are recognized when due and the Town of Erwin has a legal requirement to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of LGERS. Investments are purposes or other funds. for any purpose that would obligate the Towni ins ai future budget. reported at fair value. NOTE2: STEWARDSHP.COMPLIANCEANDACCOUNTABILITY A. Significant Violations of Finance-Related Legal and Contractual Provisions 1.N Noncompliance with) N.C. General Statutes None. 2. Contractual Violations None. None. None. B. Deficiti in Fund Balance orl Net] Position of] Individual Funds C.E Excess of Expenditures over Appropriations 24 TOWNOFI ERWIN, NORTH CAROLINA Notes tot the Financial Statements Fort thel Fiscal Year Ended. June 30,2024 NOTE3: DETAIL NOTES ON ALLI FUNDS A. Assets Deposits All the deposits of the Town are either insured or collateralized by using one of two methods. Under the Dedicated Method, all deposits that exceed the federal depository insurance coverage level are collateralized with securities held by the Town's agents in these units' names. Under the Pooling Method, which is a collateral pool, all uninsured deposits are collateralized with securities held by the State Treasurer's agent in the name oft the State' Treasurer. Since the State Treasurer is acting in ai fiduciary capacity for the Town, these deposits are considered to be held by the Town's agents in their name. The amount of the pledged collateral is based on an approved averaging method for non- interest bearing deposits and the actual current balance for interest-bearing deposits. Depositories using the Pooling Method report to the State Treasurer the adequacy of their pooled collateral covering uninsured deposits. The State Treasurer does not confirm this information with the Town or the escrow agent. Because oft the inability to measure the exact amounts of collateral pledged for the Town under the Pooling Method, the potential exists for undercolaterization. This risk may increase in periods oft high cash flows. However, the State Treasurer of North Carolina enforces strict standards of financial stability for each depository that collateralizes public deposits under the Pooling Method. The Town has no formal policy regarding custodial credit risk for deposits, but relies on the State Treasurer to enforce standards of minimum capitalization for all pooling method financial institutions and to monitor them for compliance. The Town complies with the provisions ofG.S. 159-31 when designating official depositories and verifying that deposits At. June 30, 2024, the Town's deposits had a carrying amount of $5,472,282 and al bank balance of $5,852,123. Of the bank balance, $3,804,118 was covered by pledge securities, $250,000 was covered by federal depository insurance and the remainder was covered under the pooling method or pledged assets by the financial institution. At. June: 30, 2024, the At June 30, 2024 the Town had $4,484,551 invested in the North Carolina Capital Management Trust Government Portfolio which carried a credit rating of AAAm by Standard and Poor's and. AAAm-mf by Moody's Investors Service. The amounts presented in the Balance Sheet and the Statement of Net Position is net of the following allowançe for are properly secured. Town's petty cash fund totaled $200. Investments The" Town had noj policy regarding credit risk ofitsi investments. Receivables- - Allowance for] Doubtful Accounts doubtful accounts: Fund Generall Fund Taxes Receivable Total June 30, 2024 $ 15,000 15,000 Lease Receivable Inl March 2019, the' Town amended the lease agreement for the lease ofr real estate used fora a cell tower. Under the lease, thev vendor pays the Town $1,992 peri month fors sixty months in exchange for right tot thel land. Ont the annual anniversary date, thej payment is increased by 3%. The lease receivable isi measured as thej present value oft thei future: minimum rent payments expected to be received during the lease term at a discount rate of 5.50%, which is the stated rate in the agreement. There is an optional 60 month extension of thel lease agreement which management believes is reasonably certain tol be exercised. Final lease payment based on the extended period oftimei is February 2029. Ini fiscal year 2024, the Town recognized $24,373 of lease revenue and $8,852 ofi interest revenue under the lease. 25 TOWN OF ERWIN, NORTH CAROLINA Notes tot the Financial Statements Fort the Fiscal Year Ended. June 30,2024 Capital Assets Capital asset activity fort thes year ended. June 30, 2024, was as follows: Beginning Balances $ 191,207 $ 659,534 850,741 2,653,261 1,008,746 1,898,743 1,490,225 333,675 24,458 7,409,108 1,270,762 1,000,399 1,179,998 393,568 106,412 24,458 3,433,511 Ending Balances $ 191,207 124,122 315,329 2,660,061 1,129,218 2,132,772 333,675 24,458 1,346,258 1,129,218 1,201,990 497,967 112,231 24,458 4,118,380 4,433,709 Increases Decreases $ 107,135 (642,547) 107,135 (642,547) 6,800 120,472 357,327 642,547 1,127,146 75,496 128,819 127,744 104,399 5,819 Governmental. Activities: Capital Assets not Being Depreciated: Land Construction: in Progress Total Capital Assets notl Being Depreciated: Capital Assets Being Depreciated: Buildings Equipment Vehicles and! Motor Equipment Infrastructure Land Improvements Furniture Total Capital Assets Being Depreciated: Less Accumulated Depreciation Buildings Equipment Vehicles and Motor Equipment Infrastructure Land Improvements Furniture Total Accumulated Depreciation Total Capital Assets Being Depreciated, net Governmental. Activity Capital Assets, net $ 4,284,252 (105,752) 2,150,318 (105,752) 8,430,502 (105,752) 3,975,597 $ 442,277 $ (105,752) 4,312,122 Primary Government General Government Public Safety Transportation Cultural & Recreational Total Depreciation Expense B. Liabilities Depreciation expense was charged to functions/programs of the primary government asf follows: $ 49,460 84,916 173,099 134,802 $ 442,277 1. Pension Plan and) Postemployment Obligations a. Local Governmental Employees' Retirement System Plan Description. The Town of Erwin is aj participating employer in the statewide Local Governmental Employees' Retirement System (LGERS), a cost-sharing multiple-employer defined benefit pension plan administered by the State ofl North Carolina. LGERS membership is comprised of general employees and local law enforcement officers (LEOs) of participating local governmental entities. Article 3 ofG.S. Chapter 128 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. Management of the plan is vested in the LGERS Board of Trustees, which consists of 13 members -1 nine appointed by the Governor, one appointed by the State Senate, one appointed by the State House of Representatives, and the State Treasurer and State Superintendent, who serve as ex-officio members. The Local Governmental Employees' Retirement System is included in the Annual Comprehensive Financial Report for the State of North Carolina. The State's Annual Comprehensive Financial Report includes financial statements andi required supplementary information for LGERS. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-1410, by calling (919)981-5454, or at www.osc.nc.gov. 26 TOWNO OF. ERWIN, NORTH CAROLINA Notes tot the Financial Statements For the Fiscal Year Ended. June 30, 2024 Benefits Provided. LGERS provides retirement and survivor benefits. Retirement benefits are determined as 1.85% of the member's average final compensation times the member's years of creditable service. A member's average final compensation is calculated as the average ofa member's four highest consecutive years of compensation. Plan members are eligible to retire with full retirement benefits at age 65 with five years of creditable service, at age 60 with 25 years of creditable service, or at any age with 30 years of creditable service. Plan members are eligible to retire with partial retirement benefits at age 50 with 20 years of creditable service or at age 60 with five years of creditable service (age 55 for firefighters). Survivor benefits are available to eligible beneficiaries of members who die while in active service or within 180 days of their last day of service and who have either completed 20 years of creditable service regardless of age (15 years of creditable service for firefighters andi rescue squad members who are killed ini thel line of duty) or have completed fivey years ofs service and] have reached age 60. Eligible beneficiaries may elect to receive a monthly Survivor's Alternate Benefit for life or ai return of the member's contributions. The plan does not provide for automatic post-retirement benefit increases. Increases are contingent upon actuarial gains oft the LGERS plan members who are LEOs are eligible to retire with full retirement benefits at age 55 with five years of creditable service as an officer, or at any age with 30 years of creditable service. LEO plan members are eligible to retire with partial retirement benefits at age 50 with 15years of creditable service as an officer. Survivor benefits are available to eligible beneficiaries of LEO members who die while in active service or within 180 days of their last day ofservice and who alsol have either completed 20 years of creditable service regardless ofage, orl have completed 15: years ofs service as a LEO and have reached age 50, or have completed five years of creditable service as aLEO and have reached age 55, or have completed 15 years of creditable service as al LEO ifk killed in the line of duty. Eligible beneficiaries may elect tor receive ai monthly Survivor's. Alternate Benefit for life orai return of the member's Contributions. Contribution provisions are established by General Statute 128-30 and may be amended only by the North Carolina General Assembly. Town of Erwin employees are required to contribute 6% oft their compensation. Employer contributions are actuarially determined and set annually by the LGERS Board of Trustees. The Town of Erwin's contractually required contribution rate for the year ended June 30, 2024, was 14.04% of compensation for law enforcement officers and 12.93% for general employees and firefighters, actuarially determined as an amount that, when combined with employee contributions, is expected to finance the costs of benefits earned by employees during the year. Contributions to the pension plan from the Town of] Erwin were $179,287 for the year ended June Refunds fContributions- Town employees who have terminated service as a contributing member of LGERS, may file an application for a refund of their contributions. By state law, refunds to members with at least five years of service include 4% interest. State law requires a 60 day waiting period after service termination before the refund may be paid. The acceptance of a refund payment cancels the individual's right to employer contributions or any Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and. Deferred Inflows of Resources At June 30, 2024, the Town reported al liability of $963,924 fori its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2023. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of] December 31, 2022. The total pension liability was then rolled forward to the measurement date of. June 30, 2023 utilizing update procedures incorporating the actuarial assumptions. The Town's proportion oft the net pension liability was based on aj projection of the Town's long-term share of future payroll covered by the pension plan, relative to the projected future payroll covered by the pension plan of all participating LGERS employers, actuarially determined. At June 30, 2023 (measurement date), the Town's proportion was 0.01455%, which was a decrease of 0.00104% fromi its proportion measured as of June 30, For the year ended June 30, 2024, the Town recognized pension expense of $258,538. At June 30, 2024, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following plan. contributions. 30,2024. other benefit provided by LGERS. Related toi Pensions 2022. sources: 27 TOWNOFI ERWIN, NORTHCAROLINA Notes tot the Financial Statements For the Fiscal Year Ended. June 30, 2024 Deferred Outflows of Resources 107,410 $ 40,961 257,988 18,982 179,287 604,628 $ Deferredinflows ofResources 2,312 Differences between expected and actuale experience Net differencel between projected and actual earnings on Changes inj proportion and differences between Town contributions andj proportionate share ofcontributions Town contributions subsequent to the measurement date Changes ofassumptions pension plan investments 42,720 45,032 Total $179,287 reported as deferred outflows of resources related to pensions resulting from Town contributions subsequent to the measurement date will be recognized as an increase of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred inflows of resources related to pensions will be recognized in pension expense asi follows: Year endedJune 30: 2025 2026 2027 2028 $ $ 136,844 69,305 163,251 10,909 380,309 Actuarial Assumptions. The total pension liability in the December 31, 2022 actuarial valuation was determined using the following actuarial assumptions, applied to all periods includedi in the measurement: Inflation Salary increases Investment rate ofreturn 2.50percent 3.25t to 8.05 percent, including inflation and productivity factor 6.50p percent, net ofpension plan investment expense, includingi inflation The plan currently uses mortality tables that vary by age, gender, employee group (i.e. general, law enforcement officer) and health status (i.e. disabled and healthy). The current mortality rates are based on published tables and based on studies that cover significant portions of the U.S. population. The healthy mortality rates also contain a The actuarial assumptions used in the December 31, 2022 valuation were based on the results of an actuarial Future ad hoc COLA amounts are not considered to be substantively automatic and are therefore not included in the The projected long-term investment returns and inflation assumptions are developed through review of current and historical capital markets data, sell-side investment research, consultant whitepapers, and historical performance of investment strategies. Fixed income return projections reflect current yields across the U.S. Treasury yield curve and market expectations of forward yields projected and interpolated for multiple tenors and over multiple year horizons. Global public equity retur projections are established through analysis of the equity risk premium and the fixed income return projections. Other asset categories and strategies' return projections reflect the: foregoing and historical data analysis. These projections are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates ofa arithmetic real rates ofretur for each major asset class as of. June 30, 2023: are provision tor reflect future mortality improvements. experience study for thej period. January 1, 20151 through December 31, 2019. measurement. summarized int the following table: 28 TOWN OF ERWIN, NORTH CAROLINA Notes tot thel Financial Statements Fort the Fiscal Year Ended. June 30,2024 Long-Term ExpectedReal AssetClass Fixed Income Globall Equity Reall Estate Altematives Credit Inflation Protection Total Target Allocation Rate ofl Return 33.0% 38.0% 8.0% 8.0% 7.0% 6.0% 100% 0.9% 6.5% 5.9% 8.2% 5.0% 2.7% The information above is based on 30-year expectations developed with the consulting actuary for the 2023 asset liability and investment policy study fort the North Carolina Retirement Systems, including LGERS. The long-term nominal rates of return underlying the real rates of return are arithmetic annualized figures. The real rates of return are calculated from nominal rates by multiplicatively subtracting al long-term inflation assumption of 2.50%. All Discount rate. The discount rate used to1 measure the total pension liability was 6.50%. Thej projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on these assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of the current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total Sensitivity oft the Town! 's proportionate. share of the net pension asset to changes in the discount rate. The following presents the Town's) proportionate share oft the net pension asset calculated using the discount rate of6.50 percent, as well as what the Town's proportionate share of the net pension asset or net pension liability would be ifit were calculated using a discount rate thati is one] percentage point lower (5.50 percent) or one percentage point higher (7.50 rates ofr retum andi inflation are annualized. pension liability. percent) than the current rate: Town's proportionate share ofthe net pension liability (asset) 1% Decrease (5.50%) 1,669,961 $ Discount Rate (6.50%) 963,924 $ 1% Increase (7.50%) 382,649 Pension planj fiduciary net position. Detailed information about the pension plan's fiduciary net position is available int the separately issued. Annual Comprehensive Financial Report for the State ofNorth Carolina. b. Law Enforcement Officers Special Separation Allowance Plan Description. The Town of Erwin administers aj public employee retirement system (the' "Separation. Allowance"),a single-employer defined benefit pension plan that provides retirement benefits to the Town's qualified swom law enforcement officers under the age of 62 whol have completed at least 30 years of creditable service or have attained: 55 years of age and have completed five or more years of creditable service. The Separation Allowance is equal to 0.85 percent oft the annual equivalent oft the base rate of compensation most recently applicable to the officer for each year of creditable service. The retirement benefits are not subject to any increasesi in salary or retirement allowances that may be authorized by the General Assembly. Article 12D of G.S. Chapter 143 assigns the authority to establish and amend benefit provisions tot thel North Carolina General. Assembly. 29 TOWNO OF ERWIN, NORTH CAROLINA Notes tot the Financial Statements Fort thel Fiscal Year Ended. June 30, 2024 All full-time law enforcement officers of the Town are covered by the Separation Allowance. At December 31, 2022, the Separation Allowance's membership consisted of: Inactive members currently receiving benefits 1 11 12 Active plan members Total Summary of Significant Accounting Policies: Basis of Accounting The Town has chosen to fund the Separation Allowance on aj pay as you go basis. Pension expenditures are made from the General Fund, whichi isi maintained ont the modified: accrual basis ofa accounting. Benefits The Separation Allowance has no assets accumulated in ai trust that meets the following criteria which are outlined in The entry age actuarial cost method was used in the December 31, 2022 valuation. The total pension liability in the December. 31, 2022 actuarial valuation was determined using the following actuarial assumptions, applied to all periods andi refunds are recognized when due andj payable in accordance with the terms of the plan. GASB Statements 73. Actuarial Assumptions includedi in thei measurement: Discount rate Projected salary increases Includes inflation at 4.00% 3.25-7.75 percent, including inflation and productivity factor 2.50percent The discount rate used to measure the TPL ist the S&PN Municipal Bond 20 Year! High Grade Rate. Index. Alli mortality rates use. Pub-2010 amount-weighted tables. Allmortality rates are projected from 2010 using generational The Town is required by Article 12D ofG.S. Chapter 143 to provide these retirement benefits and has chosen to fund the amounts necessary to cover the benefits earned on a pay as you go basis through appropriations made in the General Fund operating budget. There were no contributions made by employees. The Town's obligation to contribute to this plan is established and may be amended by the North Carolina General Assembly. Administration costs oft the Separation. Allowance: are: financed through investment earnings. The Town paid $18,348 as benefits came Pension Liabilities, Pension Expense. and Deferred Outflows of Resources and] Deferred Inflows of] Resources Related to At. June 30, 2024, the Town reported at total pension liability of$278,113. The total pension liability was measured as of December 31, 2023 based on a December 31, 2022 actuarial valuation. The total pension liability was then rolled forward to the measurement date of December 31, 2023 utilizing update procedures incorporating the actuarial assumptions. Fort the year ended. June 30, 2024, the' Towni recognized pension expense of$20,663. improvement with Scale MP-2020. Contributions. due fort the reporting period. Pensions Deferred Outflows of Resources $ 12,252 $ 34,546 9,174 $ 55,972 $ DeferredInflows ofResources 74,251 36,392 110,643 Differences between expected and actual experience Changes ofassumptions and otheri inputs Benefit payments and administrative expenses subsequent to ther measurement date. Total 30 TOWN OFI ERWIN, NORTH CAROLINA Notes to the Financial Statements Fort thel Fiscal Year Ended. June 30, 2024 $9,174 paid as benefits came due and $0 of administrative expenses subsequent to the measurement date have been reported as deferred outflows of resources and will be recognized as a decrease of the total pension liability in the year ended. June 30, 2025. Other amounts: reported as deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year endedJune 30: 2025 2026 2027 2028 2029 Thereafter $ (7,549) (13,298) (18,012) (11,276) (9,794) (3,916) (63,845) Sensitivity of the Town's total pension liability to changes in the discount rate. The following presents the Town's total pension liability calculated using the discount rate of 4.00 percent, as well as what the Town's total pension liability would bei ifit were calculated using a discount rate thati is -percentage-point lower (3.00 percent) or -percentage-point higher (5.00 percent) thant the current rate: 1% Decrease (3.00%) $ 306,070 $ Discount Rate (4.00%) 278,113 $ 1% Increase (5.00%) 253,356 Totall Pension Liability Schedule ofChanges in' Total Pension Liability Lawl Enforcement Officers' Special Separation. Allowance 2024 330,004 15,150 13,831 (70,049) 7,369 (18,192) 278,113 Beginning balance Service Cost Interest on thet total pension liability Changes ofbenefit terms Differences between expected and actual experiencei in ther measurement ofthet total pension liability Changes ofassumptions or otheri inputs Benefit payments Other changes Ending balance ofthet total pension liability $ The plan currently uses mortality tables that vary by age, and health status (i.e. disabled and healthy). The current mortality rates are based on published tables and based on studies that cover significant portions oft the U.S. population. The actuarial assumptions used in thel December. 31, 2022 valuation were based on the results of an experience study completed by the Actuary for the Local Governmental Employees Retirement System for the five-year period ending Thel healthy mortality rates also contain aj provision to reflect future mortality improvements. December: 31, 2019. 31 TOWN OF ERWIN, NORTH CAROLINA Notes tot thel Financial Statements Fort thel Fiscal Year Ended. June 30, 2024 Total Expense, Liabilities, and Deferred Outflows and Inflows of Resources of Related to Pensions Followingi isi information related to the proportionate share andy pension expense for all pension plans: LGERS 258,538 $ 963,924 0.01455% 107,410 40,961 257,988 18,982 179,287 2,312 LEOSSA Total 20,663 $ 279,201 278,113 1,242,037 N/A 12,252 34,546 Pension Expense Pension Liability Proportionate share ofthe net pension liability Deferred ofOutflows ofResources Differences between expected and actual experience Changes ofassumptions Net difference between projected and actual eamings onj plan investments Changes inj proportion and differences between contributions and proportionate share of contributions Benefit payments and administrative costs paid subsequent to thei measurement date Deferred ofInflows ofResources Differences between expected and actual experience Changes ofassumptions Net difference between projected and actual eamings on plan investments Changes inj proportion. and differences between contributions and proportionate share of contributions . Supplemental Retirement Income Plan 119,662 75,507 257,988 18,982 188,461 76,563 36,392 9,174 74,251 36,392 42,720 42,720 Plan Description. The Town contributes to the Supplemental Retirement Income Plan (Plan), a defined contribution pension plan administered by the Department of State Treasurer and a Board of Trustees. Thel Plan provides retirement benefits to all qualifying employees employed by the Town. Article 5 of G.S. Chapter 135 assigns the authority to establish and amend benefit provisions to the North Carolina General. Assembly. The" Town also contributes on behalfof all other employees. The Supplemental Retirement Income Plan forLaw Enforcement Officers isi included ini the. Annual Comprehensive Financial Report for the State of North Carolina. The State's Annual Comprehensive Financial Report includes the pension trust fund financial statements for the Internal Revenue Code Section 401(k) plan that includes Supplemental Retirement Income Plan for Law Enforcement Officers. That report may be obtained by writing to the Office of the State Controller, 14101 Mail Service Center, Raleigh, North Carolina 27699-1410, or by calling (919)981- Funding Policy. Article 12E of G.S. Chapter 143 requires the Town to contribute each month an amount equal to five percent ofe each law enforcement officer's salary, and all amounts contributed are vested immediately, For all other plan members, the Town contributes two percent. Also, plan members may make voluntary contributions to the plan. Contributions for the year ended. June 30, 2024 were $110,747, which consisted of $66,110 from the Town and $44,637 5454. from employees. 32 TOWN OF ERWIN, NORTH CAROLINA Notes to thel Financial Statements For thel Fiscal Year Ended. June 30,2024 d. Other) Post Employment Benefits Healthcarel Benefits Plan Description. Under the terms of a Town resolution, the Town administers a single-employer defined benefit healthcare plan ("the Retiree Health Plan"). The Plan provides postemployment healthcare benefits to retirees of the Town, provided they participate ini the North Carolinal Local Governmental Employees'" Retirement System (System) and who retire with 20: years of service and are over sixty years of age, the Town pays 50% of the cost of coverage. For employees who retire with 25: years ofs service, regardless of their age, the Town pays 75% of the cost of coverage. For employees who retire with 30 years of service, the Town pays the full cost of coverage for those benefits. The Town pays the full cost of coverage for employees' benefits through private insurers and employees have the option of purchasing dependent coverage at the Town's group rates. Retirees who qualify for coverage receive the same benefits as active employees. Coverage for all retirees who are eligible for Medicare will be transferred to a Medicare Supplemental plan after qualifying for Medicare. The Town Council may amend the benefit provision. A separate report was noti issued for thej plan. New employees are not eligible for this benefit regardless oft their years ofs service. Membership oft the HCBI Plan consisted oft thei following at] June 30, 2022, the date oft the latest actuarial valuation: Law Enforcement Employees General Employees Retirees receiving benefits Terminated plan members entitled to but not yet receiving benefits Active plan members Total Total OPEB] Liability valuation as oft that date. 12 12 11 12 The Town's total OPEB liability of $727,105 was measured as of. June 30, 2023 and was determined by an actuarial Actuarial assumptions and other inpuls. The total OPEB liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement unless otherwise specified: Inflation Salary increases General Employees Discount rate Healthcare cost trend rates Pre-Medicare Medicaland Prescription. Drug 2.50% 3.25%1 to 8.41% 3.54% 4.50%! by 2032 Lawl Enforcement Employees 3.25%t to 7.90% 7.00percent for 2022 decreasing to an ultimate rate of The Town selected a Municipal Bond Index Rate equal to the Bond Buyer 20-year General Obligation Bond Index published at the last' Thursday of. June by Thel Bond Buyer, and thel Municipal Bond Index Rate as oft the measurement date as the discount rate usedt to measure the TOL. 33 TOWN OF ERWIN, NORTH CAROLINA Notes to thel Financial Statements For thel Fiscal Year Ended. June 30, 2024 Changes in the Total OPEB Liability Total OPEB Liability 720,572 19,099 25,749 (6,171) (7,308) (24,836) 6,533 727,105 Total Changes in OPEB] Liability Balance at. June 30, 2023 Changes fort they year Service cost Interest Change in benefit terms Differences between expected and actual experience Changes in assumptions or otheri inputs Benefit payments Net changes Balance at. June 30, 2024 Changes in assumptions and otheri inputs reflect a change in the discount rate: from 3.549t03.65%. Mortality rates werel based on the Pub-2010 mortality tables, with adjustments for LGERS experience and generational The demographic actuarial assumptions for retirement, disability incidence, withdrawal, and salary increases used in the. June 30, 2023 valuation were based on the results of an actuarial experience study for the period January 1,2015 Sensitivity oft the total OPEB liability to changes in the discount rate. The following presents the total OPEB liability oft the Town, as well as what the Town's total OPEB liability would bei ifit were calculated using a discount rate that is1 l-percentage-point lower (2.65 percent) or -percentage-point higher (4.65 percent) than the current discount rate: mortality improvements using Scale MP-2019. through December 31, 2019, adopted by the LGERS Board. 1% Decrease Discount Rate (3.65%) 1% Increase Total OPEBI Liability $ 797,067 $ 727,105 $ 664,776 Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The following presents the total OPEB liability of the Town, as well as what the Town's total OPEB liability would be ifit were calculated using healthcare cost trend rates that are l-percentage-point lower or -percentage-point higher than the current healthcare cost trend rates: Total OPEBI Liability 1% Decrease Current 1% Increase 652,794 $ 727,105 $ 815,201 OPEB Expense and Deferred Outflows ofl Resources and Deferred Inflows of] Resources Related to OPEB For the year ended June 30, 2024, the Town recognized OPEB expense of $33,371. At June 30, 2024, the Town reported deferred outflows ofr resources and deferredi inflows ofresources related to OPEB from the following sources: Deferred Outflows of Resources 108,056 $ 226,653 67,176 5,250 $ 180,482 $ 304,543 Deferred Inflows of Resources 77,890 Differences between expected and actual experience Benefit payments made and administrative expenses for OPEB mades subsequent tot ther measurement date. Changes ofassumptions Total 34 TOWN OF ERWIN, NORTH CAROLINA Notes to thel Financial Statements Fort the Fiscal Year Ended. June 30, 2024 $5,250 reported as deferred outflows of resources related to pensions resulting from benefit payments made and administrative expenses incurred subsequent to the measurement date will be recognized as a decrease of the total pension liability in the year ended. June 30, 2025. Other amounts reported as deferred inflows of resources related to pensions will be recognized inj pension expense as follows: Year ended. June 30: 2025 2026 2027 2028 2029 Thereafter $ (15,737) (15,737) (14,632) (12,591) (13,468) (57,146) e$ (129,311) 2. Other) Employment Benefit The Town has elected toj provide death benefits to employees through the Death Benefit Plan for members oft thel Local Governmental Employees' Retirement System (Death Benefit Plan), a multple-employer, State-administered, cost- sharing plan funded on a one-year term cost basis. The beneficiaries oft those employees who die in active service after one, year ofo contributing membership int the System, or who die within 180 days after retirement ort termination ofs service and have at least one year of contributing membership service in the System at the time of death are eligible for death benefits. Lump sum death benefit payments to beneficiaries are equal to the employees' 12 highest months salary in a row during the 241 months prior to the employee's death, butt the benefit may not exceed $50,000 or bel less than $25,000. Because all death benefit payments are made from the Death Benefit Plan and not by the Town, the Town does not determine the number of eligible participants. The Town has no liability beyond the payment of monthly contributions. The contributions to the Death Benefit Plan cannot be separated between the post-employment benefit amount and the other benefit amount. Contributions are determined as a percentage of monthly payroll based upon rates established annually by the State. Separate rates are set for employees not engaged in law enforcement and for law enforcement officers. The Town considers these contributions tol bei immaterial. 3. Deferred Outflows and Inflows of] Resources Deferred outflows oft resources are comprised of the following: Source Amount $ 179,287 9,174 5,250 227,718 142,683 257,988 18,982 841,082 Contributions toj pension plan in current fiscalyear Benefit payments made: and administrative expenses for LEOSSA made subsequent to the: measurement date. Benefit payments mades and administrative expenses for OPEB mades subsequent to ther measurement date. Differences between expected and actual experience Net difference between projected and actuale earnings on Changes inj proportion and differences between employer contributions and proportionate share ofcontributions Changes ofassumptions investments Total 35 TOWN OF ERWIN, NORTH CAROLINA Notest tot thel Financial Statements For thel Fiscal Year Ended. June 30,2024 Deferred inflows ofr resources are comprised of the following: Statement of Net Position 41$ 115,773 303,216 114,282 42,720 576,032 $ Balance Sheet 41 46,955 115,773 Prepaid taxes (Generall Fund) Taxes Receivable (General Fund) Leasel Receivable (Community Enhancement Fund) Differences between expected and actual experience Net difference between projected and actual eamings on pension plan investments Changes ofassumptions Changes inj proportion and differences between employer contributions andj proportionate share ofo contributions Total 4. Risk] Management 162,769 The Town is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Town has insurançe coverage through the Travelers Insurance Company and obtains general liability and auto liability coverage of $1 million per occurrence, property coverage up tot the total insured values oft the property policy, workers' compensation coverage up to statutory limits, and The Town carries commercial coverage for all other risks ofl loss. There have been no significant reductions ini insurance coverage in thej prior year, and settled claims have not exceeded coverage in any oft the past three: fiscal years. The Town In accordance with G.S. 159-29, the Town's employees that have access to $100 or more at any given time of the Town's funds are performance bonded through a commercial surety bond. The finance officer and tax collector are eachi individually bonded: for $80,000 and $10,000, respectively. Two remaining clerks are bonded for $10,000 each. At June 30, 2024, the Town was a defendant to various lawsuits. In the opinion of Town's management and the Town Attorney, the ultimate effect of these legal matters will not have a material adverse effect on the Town's financial employeel health coverage has obtained flood insurance: for areas subject to flooding. 5. Claims. Judgments and Contingent Liabilities position. 6. Long-Term Obligations Changes inl Long Term Liabilities Current Portion ofBalance Beginning Balance 330,004 720,572 106,347 2,036,422 Ending Decreases Balance $ 963,924 $ (51,891) 278,113 727,105 (76,034) 140,613 (127,925) 2,109,755 Increases 84,425 $ 6,533 110,300 201,258 Governmental. Activities: Net Pension Liability(LGERS) $ 879,499 $ Totall Pension Obligation(LEO) OPEB Obligation Compensated. Absences Total Governmental. Activities 76,034 76,034 Thel legal debt margin oft the' Town at. June 30, 2024 was $29,265,781. 36 TOWN OF ERWIN, NORTHO CAROLINA Notes tot the Financial Statements Fort thel Fiscal Year Ended June 30, 2024 C. Interfund Balances and Activity Balances duet to/from other funds at. June 30, 2024, consist ofthei following: Receivable Fund Community Enhancement Fund General Fund Harnett County Recreation Courts Capital Project Al Woodard Park Improvements Generall Fund Payable Fund Amount $ 120,732 50,000 2,193 172,925 General Fund The above due to/fromt transaction was thei result ofcommon usage ofthec central depository account when the Community Enhancement Fund upfronts funding for capital projects until grant reimbursements arei received. The Towni is in thep process ofclearing outt these accounts and! has sent the board aj plan toj pay the amount back. Transf fers to/from! Funds at. June: 30, 2024, consist ofthei following: From Community Enhancement Fund To Generall Fund 16,000 16,000 The: abovet transferi to the Generall Fund was fortwo designated expenses paid by the General Fund. D.] Fund Balance The following schedule provides management and citizens with information on the portion of General fund balance thati is available for appropriation: Total fund balance-Gemeral. Fund Less: Stabilization by State Statute Streets Powell Bill Public Safety Appropriated Fundl Balance in 2024-25 Budget Remaining Fund] Balance $5,900,130 452,597 232,642 3,595 5,211,296 NOTE4: SUMMARYDISCOSURE OF SIGNIFICANT CONTINGENCIES Federal and State Assisted Programs The Town has received proceeds from several federal and state grants. Periodic audits of these grants are required and certain costs may be questioned as not being appropriate expenditures under the grant agreements. Such audits could result in the refund of grant moneys to the grantor agencies. Management believes that any required refunds will be immaterial. Noj provision has been madei int the accompanying financial statements for thei refund of grant moneys. NOTE5: MANAGEMENT'S REVIEW OF SUBSEQUENT EVENTS Management has evaluated subsequent events through October 14, 2024, the date which the financial statements were available for issue. 37 TOWN OF ERWIN ERWIN, NORTH CAROLINA This page left blank intentionally Required Supplementary Financial Data The section contains additional statements required by Governmental Accounting Standards Board. Schedule ofChangesi in' Total Pension] Liability- Law Enforcement Officers' Special Separation. Allowance Schedule ofTotall Pension Liability as al Percentage of Covered Payroll- Lawi Enforcement Officers' Special Separation. Allowance Otherl Postemployment Benefits Schedule of] Funding Progress Other Postemployment Benefits Schedule of Employer Contributions Employees' Retirement System Schedule of Proportionate Share ofNet Pension Liability (Asset) Local Government Schedule of Contributions tol Local Government Employees' Retirement System Towno of Erwin, North Carolina Schedule ofF Proportionate Share ofNet Pension) Liability (Asset) Required Supplementary. Information Last Tenl Fiscal Years* Local Govemment) Employees' Retirement System 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Town's proportion oft ther net! pension liability (asset)(%) Town's proportion oft ther net pension liability (asset)($) Town's covered-employee payroll Town's proportionate share oft ther net pension liability (asset): asa percentage ofi itso covered-employee payroll Plani fiduciary net positiona asa percentage oft thet total pension liability** 0.01455% 0.01559% 0,01392% 0.01508% 0.01519% 0,01609% 0.01357% 0,01517% 0,01742% 0.01712% $963,924 $ 879,499 $ 213,477 $ 538,873 $ 414,827 $ 381,710 $ 207,312 $ 321,958 $ 78,180 $ (100,963) $1,113,858 $1,015,534 $1,030,223 $1,066,415 $1,006,350 $1,021,420 $ 901,037 $1,026,190 $1,086,966 $1,032,372 86.54% 86.60% 20.72% 50,53% 41.22% 37.37% 23.01% 31.37% 7.19% (9.78%) 82.49% 84.14% 95.51% 88,61% 90.86% 91.63% 94.18% 91.47% 98.09% 102.64% The amounts presentedi for eachi fiscal year were determined as oft thep prior fiscal year ending) June 30. ** This willl bet thes same percentage fora all participant employers int thel LGERS plan. 38 Towno ofE Erwin, North Carolina Schedule ofContributions Required Supplementaryl Information Last1 Ten) Fiscal Years* Local Govemment Employees' Retirement System 2023 2022 2021 2024 2020 2019 2018 2017 2016 2015 Contractually required contribution $ 179,287 $ 140,336 $ 118,819 $ 108,449 $ 99,826 $ 81,866 $ 80,671 $ 68,823 $ 71,136 $ 78,416 Contributions: inr relationt tot the contractually required contribution Contribution deficiency (excess) Contributions: asa a percentage ofc covered employee payroll 179,287 140,336 118,819 108,449 99,826 81,866 80,671 68,823 71,136 78,416 Town's covered- employee payroll $1,332,705 $1,113,858 $1,015,534 $1,030,223 $1,066,415 $1,006,350 $1,021,420 $ 901,037 $1,026,190 1,086,966 13.45% 12.60% 11.70% 10.53% 9.36% 8.13% 7.90% 7,64% 6.93% 7.21% 39 Town ofE Erwin, North Carolina Schedule ofc Changesi inl Total Pension) Liability Lawl Enforcement Officers' Special Separation Allowance June 30, 2024 2024 2023 2022 2021 13,831 8,003 7,702 2020 9,433 11,597 2019 9,733 Beginning balance Service Cost Interest ont thet total pension) liability Changes ofb benefitt terms Differences between expected and actual experience int ther measurement oft thet total pension liability Changes ofa assumptions or other inputs Benefit payments Other changes Ending! balance oft thet total pensionl liability The amounts presented for eachi fiscal year were determined: as oft thep prior fiscal year ending December: 31. 330,004 $ 368,597 $ 414,983 $ 304,626 $ 332,188 $ 321,589 15,150 21,810 19,637 14,433 11,100 12,962 (70,049) 11,318 (33,155) 18,820 (30,792) 26,629 7,369 (53,890) (8,702) 98,234 (18,192) (25,834) (31,868) (30,563) (27,170) (27,170) 278,113 $ 330,004 $ 368,597 $ 414,983 $ 304,626 $ 332,188 7,703 (11,555) Town ofE Erwin, North Carolina Schedule ofT Totall Pension Liability asa Percentage of Covered Payroll Law Enforcement Officers' Special Separation Allowançe June 30, 2024 2024 2023 2022 2021 2020 2019 Total pension liability Covered-e employee payroll Total pension liability asa percentage of covered- employee payroll Notes tot thes schedules: 278,113 $ 330,004 $ 368,597 $ 414,983 $ 304,626 $ 332,188 534,147 553,527 455,480 506,793 424,288 440,227 52.07% 59.62% 80.92% 81,88% 71.80% 75.46% The Town ofE Erwin! hasr nos assets accumulated inat trust that meets thec criteria inp paragraph4 4 ofGASB: Statement 73t top pay related benefits. Town of Erwin,? North Carolina And Related Ratios June 30, 2024 2024 2023 25,749 15,933 (6,171) 57,032 (7,308) (75,689) 6,533 Schedule of Changes in' Total Other Postemployment Benefits Liability Total Other Postemployment. Benefits (OPEB)Liability Service Cost att the end ofthey year Interesto on1 Total OPEBI Liability ando cash flows Changesi inb benefit terms Differences! between expecteda anda actual experience Changes ofa assumptions or other inputs Benefit payments andi implicits subsidy credit Net changei inc OPEB liability Total OPEBI liability- beginning Total OPEBI liability- ending Covered employee payroll Total OPEBI liability asap perçentage of covered payroll Notes tot thes schedules: following are the discount rates usedi ine each] period. 2022 2021 15,377 33,472 8,352 (346,512) 17,340 51,448 2020 29,739 110,856 (2,468) 27,306 19,099 $ 29,195 $ 29,717 $ 30,719 $ 25,276 (24,836) (28,515) (28,343) (28,929) (30,157) 720,572 722,616 680,173 939,975 779,423 727,105 $ 720,572 $ 722,616 $ 680,173 939,975 984,213 984,213 1,012,687 1,012,687 1,006,350 73.88% 73.21% 71,36% 67.17% 93.40% (2,044) 42,443 (259,802) 160,552 Changesi ina assumptions: Changes ofa assumptions and otheri inputs reflectt the effects ofo changesi int the discount rate ofeach period. The Fiscal Year Rate 2024 2023 2022 2021 2020 3.65% 3.54% 2.16% 3.50% 3.50% Supplementary Statements he section contains additional statements required by the Local Government Commission in North Carolina. Town ofErwin, North Carolina General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances- Budget and Actual Fort the Fiscal Year] Ended. June 30, 2024 Variance Positive (Negative) Budget Actual 1,767,274 $ 12,081 1,779,355 349,569 28,152 377,721 1,131,542 11,138 14,855 177,818 15,040 10,050 3,607 22,906 1,386,956 167,647 1,315 168,962 405 15,995 310 16,710 84,919 22,549 44,205 12,656 8,889 497,836 671,054 Revenues: Ad valorem taxes: Ad valorem taxes Penalties and interest Total Other taxes and licenses: Firej protection charges Auto licenses Total $ $ 1,748,795 30,560 362,000 15,721 Unrestricted intergovernmental: Local option sales taxes Gasoline tax refund Telecommunications tax Utility franchise tax Piped natural gas Video franchise fee Solid Wastel Disposal Tax Beer and winei tax Total Restricted intergovernmental: Powell Bill Allocation Controlled Substance Tax Total Permits and fees: Business registration fees Zoning permits Court fees Total Sales and services: School Resource Officers Recreation department Concessions, sponsorships & donations Sponsors donations/entry fees Mowing Contract Collection fees Garbage and storm water Total 1,066,213 320,743 244,115 (75,153) 15,200 1,510 650,582 20,472 43 Town ofErwin, North Carolina General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances- Budget and Actual For the Fiscal Year Ended. June 30, 2024 Variance Positive (Negative) Budget Actual 200,850 17,201 21,300 24,545 263,896 4,664,654 Other Revenues: Investment earnings Sale ofcapital assets Donations Miscellaneous Total Other Revenues Total Revenues Expenditures: General Government: Governing Body: Salaries Benefits Other Operating Expenses Capital Outlay Total Governing Body Adminstration: Salaries Benefits Professional Expenses General Insurance Other Operating Expenses Capital Outlay Total Adminstration Planning: Salaries Benefits Contracted Services Other Operating Expenses Capital Outlay Total Adminstration 148,068 4,234,973 115,828 429,681 19,800 1,515 16,910 38,225 238,488 109,682 25,998 88,101 173,864 636,133 82,131 32,215 23,092 5,180 142,618 (149,374) 667,602 697,306 267,659 132,795 169,894 1,267,654 49,604 11,379 726,320 90,187 258,156 (149,374) 884,706 115,538 217,104 ARPA Revenue Replacement: Expense Offset Total General Government Public safety: Police: Salaries Benefits Other Operating Expenses Capital Outlay Total 1,403,467 135,813 44 Town of] Erwin, North Carolina General Fund Schedule of Revenues, Expenditures, and Changes inl Fund Balances- Budget and Actual For thel Fiscal Year Ended. June 30, 2024 Variance Positive (Negative) (22,389) 113,424 Budget 332,500 (324,728) 1,411,239 Actual 354,889 354,889 (324,728) 1,297,815 134,569 53,853 183,586 40,126 255,064 640 (58,451) 609,387 69,770 24,700 31,206 40,126 165,802 61,876 79,573 141,449 (51,957) 255,294 49,742 293,659 91,354 434,755 Fire: Contract Services Total ARPA Revenue Replacement Expense Offset Total Public Safety Streets: Salaries Benefits Other Operating Expenses Capital Outlay Powelll Bill Contracted Services ARPA Revenue Replacement Expense Offset Total Transportation Public works: Administration Salaries Benefits Other Operating Expenses Capital Outlay Total Administration Storm Water: Other Operating Expenses Capital Outlay Total Storm Water ARPA Revenue Replacement Expense Offset Totall Public Works Environmental protection: Sanitation: Other Operating Expenses Contracted Services Capital Outlay Totall Environmental: Protection 660,599 51,212 168,669 2,867 154,541 (51,957) 271,253 13,092 15,959 514,087 79,332 45 Town ofErwin, North Carolina General Fund Schedule of Revenues, Expenditures, and Changes inl Fund Balances- Budget and Actual For1 the Fiscal Year Ended. June: 30, 2024 Variance Positive (Negative) Budget Actual 170,382 53,325 39,527 119,841 63,526 446,601 61,173 4,593 65,766 (64,946) 447,421 3,712,274 952,380 16,000 16,000 968,380 $ 4,931,750 5,900,130 Culture and recreation: Parks and recreation: Salaries Benefits Contracted Services Other Operating Expenses Capital Outlay Total parks and recreation Community and library building: Contracted Services Other Operating Expenses Capital Outlay Total community and library building ARPA Revenue. Replacement Expense Offset Total Culture and Recreation Total Expenditures Revenues over (under) expenditures Other) Financing Sources (Uses): Transfers To/From Other Funds: From Community Enhancement Total Other Financing Sources(Uses) Fund] Balance Appropriated Net Change in Fund Balance Fund Balances, beginning Fund Balances, ending 574,012 127,411 81,023 (64,946) 590,089 4,331,973 (97,000) 16,000 16,000 81,000 15,257 142,668 619,699 1,049,380 (81,000) 968,380 46 Town ofErwin, North Carolina AI Woodall Park Improvements Capital Project Schedule of] Revenues, Expenditures and Changes in Fund Balance- Budget and Actual From Inception andi fort the Fiscal Year Ended. June 30, 2024 Actual Current Year 29,000 29,000 Project Authorization Prior Years 57,100 378,364 642,547 642,547 (264,183) 679,356 679,356 415,173 Total tol Date $ 321,264 $ 86,100 407,364 642,547 642,547 (235,183) 679,356 679,356 Positive (Negative) (18,414) (108,900) (127,314) 36,809 (90,505) 534,678 534,678 444,173 Revenues: Restricted Intergovemmental Grant Donations Total Revenue Expenditures: Capital Outlay Total Expenditures Revenues Over(Under) Expenditures Other Financing Sources(Uses) Transfers In (Out) From/(To)) Enhancement Total Other Financing Sources (Uses) Revenues and Other Sources Over Other Uses Fund] Balance Fund Balances, beginning Fund Balances, ending $ 339,678 $ 321,264 $ 195,000 534,678 679,356 (144,678) 144,678 144,678 29,000 29,000 $ 444,173 $ 415,173 444,173 47 Town of Erwin, North Carolina American Relief] Plan Fund Schedule ofl Revenues, Expenditures and Changes in Fund! Balance-Budget and Actual From Inception and for the Fiscal Year Ended. June 30, 2024 Actual Current Year 649,456 149,374 324,728 64,946 110,408 649,456 649,456 Variance Positive (Negative) (91,410) (91,410) Project Authorization 1,643,205 Prior Years 902,339 134,927 344,063 67,463 54,071 74,114 227,701 902,339 Total tol Date 1,551,795 284,301 668,791 132,409 164,479 74,114 227,701 1,551,795 Revenues: Restricted! Intergovernmental Federal Grant Totall Revenue Expenditures: General Government Public Safety Cultural and Recreational Public Works Payroll Cost Capital Outlay Totall Expenditures Revenues Over(Under) Expenditures Fund] Balance Appropriated Revenues and Other Sources Over Other Uses Fund Balance Fund Balances, beginning Fund Balances, ending $ 1,643,205 $ 902,339 $ 649,456 $ 1,551,795 $ 1,643,205 91,410 48 Town of] Erwin, North Carolina Community Enhancement Fund Schedule of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual Fort thel Fiscal Year Ended June 30, 2024 Variance Positive (Negative) Budget Actual Revenues: Sales and services: Land Lease Interest Interest on! Lease Receivable Totall Revenue Other Financing Sources(Uses) Transfers In (Out) To General! Fund Total Other Financing Sources (Uses) Fund Balance Appropriated Revenues and Other Sources Over Other Uses Fund Balance Fund Balances, beginning Fund Balances, ending $ 10,000 $ 24,373 $ 14,373 9,845 825 35,043 (16,000) (16,000) 9,845 825 25,043 10,000 (16,000) (16,000) 6,000 (6,000) 19,043 $ 19,043 2,735,074 2,754,117 49 Town of Erwin, North Carolina Combining) Balance Sheet Nonmajor Governmentall Fund Fort the! Fiscal Year Ended. June 30, 2024 SCIF Grant SCIF Grant Priebe Field SCIF Grant Harnett County Total Nonmajor Community Bldg AIWoodall PKI Lot Special Revenue Eco-Denim. Junction Recreation Courts Governmental Capital Project Capital) Project Fund $ $ 32,866 $ 93,114 372,865 93,114 372,865 $ 32,866 Capital Project Capital) Project Funds Assets Casha and Cash] Equivalents $ Restricted Cash Due From Other Funds Total Assets Liabilities andl Fund) Balances Liabilities: Accounts Payable Total Liabilities Fund Balance: Restricted Stabilization! by State Statute Economic Development Cultural and Recreation Committed Cultural andl Recreation Assigned Subsequent Year Expenditures Unassigned Total Fund Balances Total Liabilities and Fund Balances $ 499,891 499,891 $ 32,866 965,870 50,000 50,000 50,000 $ 1,048,736 50,000 50,000 499,891 465,979 32,866 1,048,736 499,891 93,114 372,865 32,866 32,866 32,866 $ 93,114 93,114 372,865 372,865_ 499,891 499,891 50,000 50,000 $. 1,048,736 50 Towno of Erwin, North Carolina Combining Statement of Revenues, Expenditures and Changes inl Fund) Balance Nonmajor Governmental. Fund Fort the Fiscal Year Ended. June: 30, 2024 SCIF Grant SCIF Grant Priebe! Field SCIF Grant Harnett County Totall Nonmajor Community. Bldg AIV Woodall PKI Lot Special Revenue Eco-Denim. Junction Recreation Courts Govemmental Capital Project Capital Project 93,114 $ 480,000 $ 93,114 Fund $ 6,200 6,200 Capital Project Capital Project Funds Revenues: Restricted Intergovermental State Grants Miscellaneous Income Interest onl Investments Total Revenue Expenditures: General Govemment Public Safety Economicl Development Cultural and Recreational Total Expenditures Revenues Over(Under) Expenditures Fund Balance FundI Balances, beginning Fundl Balances, ending 500,000 $ 500,000 109 109 499,891 499,891 50,000 $ 1,123,114 50,000 6,200 1,129,314 109 111,864 111,973 1,017,341 31,395 1,048,736 480,000 107,135 107,135 372,865 372,865 4,729 4,729 1,471 31,395 32,866 93,114 93,114 50,000 50,000 51 Town ofErwin, North Carolina Capital Projects Fund SCIF Grant Community Building Capital Project Schedule of] Revenues, Expenditures and Changes inl Fund Balance-Budget and Actual From! Inception and for the Fiscal Year Ended. June 30, 2024 Actual Current Year Variance Positive (Negative) Project Authorization $ 100,000 $ 100,000 Prior Years Total tol Date 100,000 6,886 6,886 Revenues: Restricted Intergovemmental SCIF Grant Totall Revenue Expenditures: Operating Expenditures Capital Outlay Totall Expenditures Revenues Over(Under) Expenditures Fund Balance Fund Balances, beginning Fund Balances, ending 6,886 $ 93,114 $ 100,000 $ 6,886 6,886 6,886 93,114 100,000 93,114 93,114 $ 93,114 $ 93,114 $ 93,114 52 Town ofErwin, North Carolina Capital Projects Fund SCIF Al Woodall Pkl Lot Capital Project Schedule ofl Revenues, Expenditures and Changes in Fund Balance-Budget and Actual From Inception and for the Fiscal Year Ended June 30, 2024 Actual Current Year $ 480,000 $ 480,000 $ 480,000 107,135 107,135 372,865 Project Authorization $ 480,000 $ 480,000 480,000 480,000 Prior Years Total tol Date 480,000 107,135 107,135 372,865 Positive (Negative) Revenues: Restricted Intergovermental SCIF Total Revenue Expenditures: Cultural and Recreational Capital Outlay Total Expenditures Revenues Over(Under) Expenditures Other Financing Sources(Uses) Transfers In (Out) From] Enhancement To General Fund Total Other) Financing Sources (Uses) Revenues and Other Sources Over Other Uses Fund] Balance Fund Balances, beginning Fund Balances, ending 372,865 372,865 372,865 372,865 $ 372,865 $ 372,865 372,865 53 Town of Erwin, North Carolina Priebe Field Special Revenue Fund Schedule of Revenues, Expenditures and Changes in) Fund) Balance-Budget and Actual For the Fiscal Year Ended. June 30, 2024 Variance Positive (Negative) (1,800) Budget 8,000 Actual 6,200 6,200 4,729 4,729 1,471 Revenues: Donation and Field Rental Totall Revenue Expenditures: Cultural and Recreation Operating Expenses Total Expenditures Revenues Over(Under) Expenditures Fund Balance Appropriated Revenues and Other Sources Over Other Uses Fund Balance Fund! Balances, beginning Fund Balances, ending 8,000 3,271 1,471 1,471 $ 31,395 32,866 1,471 54 Town ofl Erwin, North Carolina Capital Projects Fund - SCIF Eco-Denim Junction Capital Project Schedule of] Revenues, Expenditures and Changes inl Fund Balance-Budget: and Actual From Inception and for thel Fiscal Year Ended. June 30, 2024 Actual Current Year Project Authorization $ 500,000 $ 500,000 500,000 500,000 Prior Years Total tol Date Positive (Negative) Revenues: Restricted! Intergovernmental SCIF Grant Interest Totall Revenue Expenditures: Economic Development Operating Expenses Totall Expenditures Revenues Over(Under) Expenditures Other Financing Sources(Uses) Transfers In (Out) From/(To) General. Fund Total Other Financing Sources (Uses) Revenues and Other Sources Over Other Uses Fund] Balance Fund Balances, beginning Fund Balances, ending $ 500,000 $ 500,000 $ 500,000 500,000 109 109 499,891 109 109 499,891 499,891 499,891 499,891 > 499,891 ) 499,891 $ 499,891 499,891 55 Town of Erwin, North Carolina Schedule ofl Revenues, Expenditures and Changes inl Fund) Balance-Budget: and Actual From Inception and fort the Fiscal Year Ended. June 30,2024 Capital Projects Fund Harnett County Recreation Courts Capital Project Actual Current Year Project Authorization $ 50,000 $ 50,000 50,000 Prior Years Total toDate Positive (Negative) Revenues: Restricted Intergovermmental Grant Donations Interest Total Revenue Expenditures: Capital Outlay Total Expenditures Revenues Over(Under) Expenditures Other Financing Sources(Uses) Transfers In (Out) From/(To)) Enhancement Total Other Financing Sources (Uses) Revenues and Other Sources Over Other Uses Fund! Balance Fund Balances, beginning Fund Balances, ending $ 50,000 $ 50,000 $ 50,000 50,000 50,000 50,000 50,000 50,000 $ 50,000 $ 50,000 $ 50,000 50,000 56 OTHER SCHEDULES This section includes additional information on property taxes. Schedule of Ad Valorem Taxes Receivable Analysis of Current Tax Levy Town of Erwin, North Carolina General Fund Schedule of Ad Valorem' Taxes Receivable June 30, 2024 Uncollected Balance July1,2023 $ 17,701 8,163 4,984 3,767 2,652 2,185 1,608 1,229 1,177 1,279 44,745 Less: Allowance for unçollectable accounts: General Fund Add Auto Tags Receivable Ad valorem taxes receivable net Reconcilement with revenues: Ad valorem taxes- General Fund Fire protection charges - General Fund Reconciling items: Interest collected Releases Subtotal Total collections and credits Uncollected Balance June 30, 2024 27,434 10,284 6,721 4,719 3,475 2,581 2,185 1,608 1,229 1,095 61,331 (15,000) 624 46,955 Collections And Credits $ 2,107,274 $ 7,417 1,442 265 292 71 82 1,279 2,118,122 Fiscal Year 2023-2024 2022-2023 2021-2022 2020-2021 2019-2020 2018-2019 2017-2018 2016-2017 2015-2016 2014-2015 2013-2014 Additions $ 2,134,708 2,134,708 $ 1,779,355 349,569 (12,081) 1,279 (10,802) 2,118,122 57 Town ofErwin, North Carolina Analysis ofCurrent' Tax Levy Town Widel Levy Fort thel Fiscal Year Ended. June 30, 2024 Totall Levy Property excluding Registered Motor Vehicles 1,895,515 1,895,515 27,434 98.55% Town- Wide Rate 0.575 Registered Motor Vehicles 239,193 239,193 Property Valuation 371,253,565 371,253,565 371,253,565 Total Levy 2,134,708 2,134,708 27,434 98.70% Original levy: Property taxed at current year's rate (including fire tax) Total Totalj property valuation Net levy 2,134,708 $ 1,895,515 $ 239,193 Uncollected taxes at. June 30, 2024 Current year's taxes collected Current levy collection percentage 2,107,274 $ 1,868,081 $ 239,193 100.00% 58 TOWN OF ERWIN ERWIN, NORTH CAROLINA This page left blank intentionally COMPLIANCE SECTION Thompson, Price, Scott, Adams & Co., P.A. Post Office Box 1690 Elizabethtown, North Carolina 28337 Telephone (910) 862-8129 Fax (910)862-8120 R. Bryon Scott, CPA Gregory S. Adams, CPA Alan W. Thompson, CPA Report Onl Internal Control Over Financial Reporting And On Compliance. and Other Matters Based On An Audit Of Financial Statements Performed In Accordance With Government. Auditing Standards Independent Auditor's Report To the Honorable Mayor and Members ofthe Town Council Town of Erwin, North Carolina Wel have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the Town of Erwin, North Carolina, as of and for the year ended June 30, 2024, and related notes toi the financial statements, which collectively comprises the Town of Erwin's basic financial In planning and performing our audit of the financial statements, we considered the Town of Erwin's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate int the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing and opinion on the effectiveness of the Town ofl Erwin's internal control. Accordingly, we do not express A deficiency in internal control exists when the design or operation ofa a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is ai reasonable possibility that ar material misstatement oft the entity'sf financial statements will not bej prevented, or detected and corrected on at timely basis. A. significant deficiency is a deficiency or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit Our consideration of the internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify certain deficiencies in internal control, described in the accompanying As part of obtaining reasonable assurance about whether the Town of Erwin's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliançe with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government. Auditing Standards. statements, and havei issued our report thereon dated October 14, 2024. Report on] Internal Control Over Financial Reporting an opinion ont the effectiveness oft the Town'si internal control. attention by those charged with governance. schedule of findings and responses that we consider tol be a significant deficiency, 2024-001. Report on Complianceand OtherMatters Members 59 American Institute ofCPAS- N.C. Association ofCPAS AICPA Division ofl Firms Town of Erwin's Responses to Findings Government Auditing Standards requires the auditor to perform limited procedures on the Town of Erwin's responses to the findings identified in our audit are described in the accompanying schedule of findings and responses. The Town's response was not subjected to the auditing procedures applied in the audit of the financial The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not statements and, accordingly, we express no opinion oni it. Purpose of this Report suitable for any other purpose. 7hompsou, Price, Scott. Adame &B.PA Elizabethtown, North Carolina October 14, 2024 60 Town ofErwin, North Carolina Schedule of Findings and Responses Fort thel Fiscal Year Ended. June 30, 2024 Section I. Summary of Auditor's Results Financial Statements Typeofr report the auditor issued on whether the financial statements audited were preparedi in accordance to GAAP: Unmodified Internal control over financial reporting: Material weakness(es). identified? Significant Deficiency(s)i identified? Noncompliance material toi finançial statements noted? yes X none reported Xyes none reported yes. Xno 61 Town ofE Erwin, North Carolina Schedule ofF Findings and Responses For the Fiscal Year Ended. June 30, 2024 Section II-1 Financial Statement Findings SIGNIFICANT DEFICIENCIES 2024-001 Segregation ofDuties Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording ofa transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled Condition: Key duties and functions are not segregated amount Town personnel. This is especially a concern in cash management, accounts receivable, purchasing, and payroll functions in all departments. Effect: Transactions could be mishandled, due to errors or fraud that could lead to loss of assets or the Cause: There are al limited: number of personnel for certain functions and] lack oft board oversight. Identification ofai repeat finding: Thisi isa ai repeat finding from the immediate previous audit, 2023-001. Recommendation: The duties should be separated as much as possible, by possibly training and utilizing non-financial personnel and utilizing alternative controls. The governing board should provide some of Views of responsible officials and planned corrective actions: The Town agrees with this finding and will appropriately. reporting ofr misleading financial information. these controls. adhere to the correction action plan on page 63 in this audit report. 62 ERWIN arel FRONT PORCH FRIENDS Town of Erwin 100 West F. Street Erwin, NC 28339 Corrective. Action Plan For the Fiscal Year Ended. June 30, 2024 Section II - Financial Statement Findings GNITICANIDETICIENCT 2024-001 Segregation ofDuties Name ofc contact person: Corrective Action: Randy L. Baker, Mayor The duties will be separated as much as possible and alternative controls will be used to compensate for lack of separation. The governing board will become more involved inj providing some ofthese Thel Board will implement the above procedure immediately. controls. Proposed Completion! Date: 63 TOWN OF ERWIN EAWI,NORTHICAROINA This page left blank intentionally 9054 MINUTES CONTINUED FROM DECEMBER 5, 2024 NEW BUSINESS Grain Dealers Encroachment Town Planner Dylan Eure informed the Board that this encroachment application was submitted by Wesley Johnson, owner of Grain Dealers Brewery. Unfortunately, Mr. Johnson had other obligations and was not able to be at the meeting but he intended to install HVAC units with fencing. The amount of the encroachment for the HVAC units and its fencing will be approximately 6ft into the public Right-of-Way and the amount of encroachment for the glycol unit fencing will be approximately 2ft into the public Right-of-Way. It will not block drainage ditches and will not be within the public roadway. It will also be an adequate distance from Commissioner Blackmon made a motion to approve the Grain Dealers Encroachment Agreement and was seconded by Commissioner Turnage. The Board voted unanimously. public utilities. ZT-2024-005, Letter of Denial Town Planner Dylan Eure presented the Board with al Letter ofDenial of rezoning case ZT- 2024-005 which was denied at our Regularly Scheduled Board Meeting in November. Going forward, it will be required for the Board to approve an official letter signed by Mayor Baker for Commissioner Blackmon made ai motion to approve the letter of denial for ZT-2024-005 and was quasi-judicial hearings. seconded by Commissioner Nelson. The Board voted unanimously. PUBLIC COMMENT No one was present to speak for Public Comment. MANAGER'S REPORT Town Manager Snow Bowden provided the Board with a detailed report at their seats. He stated ifthey had any questions to give him a call. The Manager' 's. Report is part ofthese minutes as an attachment. ATTORNEY'S REPORT Town Attorney Tim Morris thanked the Board for allowing him to be their Town Attorney and kudos to the Town Staff for an incredible Christmas Parade. The Board discussed upcoming Christmas events. TOWN OF ERWIN P.O. Box 459. Erwin, NC28339 Ph: 910-897-5140-1 Fax: 910-897-5543 www.erwin-nc.org 12/05/2024 Mayor Randy L. Baker Mayor. Pro Tem Ricky W. Blackmon Commissioners AlvesterL. McKoy Timothy D. Marbell Charles L. Byrd David) L. Nelson William R. Turnage 1 Grain Dealers Encroachment Memorandum Description of Request: Wesley Johnson, owner of Grain Dealers Brewery, has applied for the allowance ofan encroachment to allow fora a 27 ton HVAC unit along with fencing for the HVAC, glycol units, trash receptacles, and keg storage to be placed partially within the Town ofl Erwin's] Right-of- Way along Chief. Joseph Ln. As required within Erwin's ordinances major utilities over 51 tons to be screened a long with trash receptacles. The amount of the encroachment for the HVAC units and its fencing will be approximately 6ft into the public Right-of-Way and the amount of encroachment for the glycol unit fencing will be approximately 2ft into the public Right-of-Way. Description of] Property: Thej proposed encroachment is to take place off ofunits KW &. JW going into the public Right-of-Way of ChiefJoseph Lane. Said Right-of-Way is maintained by the Town of Erwin and is not considered NCDOT property. There is a drainage ditch that runs across that portion oft the Right-of-Way, however it measures to be 18ft away from the current existing structure and the proposed encroachment would stop 2ft before said drainage ditch for the HVAC and its Fence. While the other fence containing the glycol units would be 7ft away from the existing drainage ditch. Staff] Evaluation: According to the site plan submitted by Grain Dealers they have been able to meet said requirements for an encroachment to be granted. The proposed encroachments will not encroach into aj public street nor will it prevent the drainage of ditches, eliminate public parking, within 5 feet of any public utility or intersection. It is staffs recommendation that the encroachment be approved. Town of Erwin Fee: Case: #: Encroachment Application Meeting Date:. Planning & Inspections Department First Name: Last Name: Address: City/State/Zip: Home Phone: Email: Wesley Johnson 2985 Hobson Road Dunn, NC: 28334 N/A Cell Phone: 919-756-0411 ne@yarssnbeey.n Parcel PIN/ /ID: 0597-54-9120.000 Acreage/size: 10.48 Zoning: Industrial "ivcs Encroachment Request (may be attachedon: a separate sheet): code around its spacing fromt the building makes this encroachment: necessary. Encroachment Reasoning (mayl be attached on a separate sheet): Seeking permission top place a? 271 ton! HVAG unity parliallys within the righto ofv way. This plece ofinfrastructure would bet fenced ins such ay way tor minimize visibility tos streett traffic while allowing for maintenance whent needed. The size oft the unite andthe F. alioe - Thes size oft thel HVAC and thel historicr nature ofthe bulldings that itiss sett tos serve (units, J8K prevenfif from being placed on the roof oft thel bullding. Thes associated ductwork thatf feedsi into thet twos spaces requires that the unit! be plaçed In Ine witht the juncture oft thoses spaces. In addition, the grassy areal belween thel building and 13ths streoti is sett tot be parkingt to access this and otherb businesses set tol be locatedi int the development. Thei interior space Is set tol bes ap pedestian onlys couctyard. 1,as the landowner, hereby CERTIFY that thei information contained herein Ist truet tot the d best of myl knowledge. Landowner's! Signature: MA : Date: Nov 20 2y Applicant's! Signature: Wesley, Johnson CpadyNa 203410.022 or00 Date: October3, 2024 Attacha as scaledi Hlustrative ploto orsite plans showing all dimensions of structure encroachment along with property lines. : Town of Erwin Fee: Caset #: Encroachment Application Meeting Date: Planning & Inspections Department In order for the Town of Erwin's Commissioners to grant an encroachment into the1 Town of Erwin'sP Public Right-OF-Way: all oft thé following standards must be met andi found int the 1. Cannot bes easilys sited int the private property duet to physical constraints. Reasoning: Pedestrian anly courtyard to act as an extension of downtown Erwin. affirmative. Ductwork orientation requires unit be placed at juncture ofi two building spaces. 2. P Must not locate within ap public street. Would not extend into the street. 3. Must not encroachi intoj public parking. Reasoning: y Would not bei inj public parking. This proposed location allows fort the creation of Reasoning:publidly accessible parking in the grassy area towards 13th Street. 4. Must notl block drainage ditches or gutters that control thei flow of stormwater, 5. Must notl locate within! 5 feet of public signs, utility boxes, utility poles/ lines, or other Should not hinder the drainage oft the ditch. areas readily accessed byt town or county departments. Reasoning: Will notl be within 51 feet of nearest power pole. 6. Must not be-within! 51 feet of any street intersection. 7. Must notl be within! 51 feet ofaf fire hydrant. Will not be within 51 feet ofe ai fire hydrant. 8. Must not! block access to public street furniture or sidewalk. Reasoning: Will not block access to public street fumiture or sidewalk. 9. The circumstances are not the result oft the actions oft the: applicant. mill owners when road location was offered to thet town. Reasoning: Reasoning: Will not be within 51 feet of Chief Joseph Lane and S 13th Street. Reasoning: Reasoning: Consideration offuture infrastructure needs were not likely consider by prevlous OLIVE Mio A116 Erwin Board of Commissioners REQUEST FOR CONSIDERATION To: The Honorable Mayor and Board of Commissioners From: Snow Bowden, Town Manager Date: December 5, 2024 Subject: ZT-2024-005 Letter of] Denial Town Staff has prepared a written decision on the outcome oft the rezoning public hearing case (ZT-2024-005) that we. had at our. November Town Board meeting. This is a formal step in the rezoning process that we need toi follow going forward. Town Staffi is happy to make any changes ifr necessary. ur TOWN OF ERWIN P.O. Box 459-E Erwin, NC28339 Ph: 910-897-5140-F Fax: 910-897-5543 www.erwin-nc.org Mayor Randy L. Baker Mayor Pro Tem Ricky W. Blackmon Commissioners Alvester L. McKoy Timothy D. Marbell Charles L. Byrd David) L. Nelson William R. Turnage To: Gregorio Irado, Rabbit Construction Inc. Mollie Cozart, Jordan Price Law Offices From: Erwin Board of Commissioners Subject: ZT-2024-005 Denial Date: 12/05/2024 Please accept this letter of correspondence from the Town of] Erwin as verification that the conditional district rezoning petitioned by Gregorio Irado to allow for apartments located by their physical addresses 40, 100,140, 137,119, ,87, and 51 Professional Park was heard by the Erwin Board of Commissioners on 11/07/2024 during aj public hearing at the regularly scheduled After the public hearing concluded the Erwin Board of Commissioners engaged ini final deliberation which was followed by a vote that resulted in 5-1 denial of the proposed conditional district. Stated reason for denial being that the impact to the adjacent property owners and community are unreasonable due to the lack ofjobs being created by an apartment complex, along with potentially limiting property tax revenue due to the proposed change ofzoning from Ifthere is any further questions please contact Erwin's' Town Planner, Dylan Eure at 910-591- November meeting. being classified as commercial to residential. 4201 or by email at deurederwin-nc.or. Regards. ATTEST: Kss Caun Eon Randy Baker Mayor Lauren Evans, NCCMC Town Clerk OF TOWN OF ERWIN BOARD OF COMMISSISSIONERS REGULAR MEETING THURSDAY,DECEMBER 5, 2024, AT71 PM PUBLIC COMMENT- Each speaker is asked to limit comments to. 3 minutes, and the requested total comment, period will be 301 minutes or less. Citizens should: sign up prior to the start ofthe meeting. Please provide the clerk with copies ofany handouts you have for the Board. Although the Board is interested in hearing your concerns, speakers. should not expect Board action or deliberation on subject matter brought up during the Public Comment. segment. Thank youj for your consideration of the Town. Board, staffand other speakers. $160A-81.1 Name Address Subject 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. TOWN OF ERWIN P.O. Box 459. Erwin, NC 28339 Ph: 910-897-5140- Fax: 910-897-5543 www.erwin-nc.org Randy Mayor L. Baker Mayor Pro Tem Ricky W. Blackmon Commissioners Alvester L. McKoy Timothy D. Marbell Charles L. Byrd David L. Nelson William R. Turnage Memo to: Mayor and Board of Commissioners From: Snow Bowden, Town Manager Subject: December Managers Report Date: 12/5/2024 Wel have run into some issues with getting the electricity disconnected at 601 Lucas Road. This is the structure that we approved a ordinance tol have demolished and we awarded a bid tol have the structure demolished. Thel Harnett County Building ChiefBuilding Inspector Brad Sutton is trying tol help us work with Duke Energy to get the power disconnected without having to go through the condemnation process since wel have already gone through the minimum housing process. This has been a learning lesson for' Town Staff. Going forward, it would be best to just start the condemnation process. We are going to have to seei if Harnett County would be willing The preliminary subdivision plat that you all approved al little over a year ago for the major subdivision offo ofRed Hill Church Road might be able to move: forward now. This was a 12-lot subdivision. The developers ran into some issues with Harnett Regional Water, but Ihave been The major subdivision where wej just approved the preliminary plat at the corner ofOld Stage Road and Avery Road is moving forward quickly as well. We will probably have an update for The Town of Erwin has signed the contract with the North Carolina Department of Transportation for thel bike/pedestrian planning grant that we: received. The Town has sent in a check to cover our portion ofthe grant as well. At the moment, we are hoping to kick offt the Iput a flyer at your desk with the hours for the Santa House this year. We got complaints last year that there were no hours that the Santa house was open. Due to the fact that the Town planned the tree lightening and Christmas parade this year wel have also planned hours tol have The Erwin Fire and Rescue Department will be hosting their annual Christmas party this Saturday, December 7th, 2024, at 7PM at the Erwin Fire and Rescue station. Ifyou are able to The annual Nutcracker Endurance Run will bei taking place on the Dunn-Erwin Rail Trail next Saturday, December 14th. Thisi is the run where people get dressed up in Christmas outfits and run most oft the day on thei rail trial. The funds raised stay local. The funds have typically been tol help us with this need. told that they might have been able to find a solution. you in early 2025. process in January 2025. Santa ini the Santa House. attend, please do SO. given tol Dunn PAL and the Dunn-Erwin Rail Trail. We are working on collecting data for the pay study that we are currently undertaking. At your seats Ileft a sheet of paper with the municipalities that we are planning oni including in the pay study. The majority oft the municipalities that were: included in the list are very close by. We included the Town of] Nashville, NC because wel have found some similarities between our We are making progress on this study. All ofour employees have turned int their questionnaire forms to their supervisor and they will bei reviewed and submitted to' The MAPS Group by 12/11/2024. The MAPS Group will conduct interviews with employees December 17-20, 2024. The MAPS Group is scheduled tol have a draft report ofthe proposed cost estimates to the Town of] Erwin by 1/1/2025. This will be very helpful in the budget process for the next Fiscal Year. The other updates tot thej personnel policy and At our meeting last month, I was asked about the status ofOld Post Road. Old Post Road is a North Carolina Department ofTransportation: maintained road (NCDOT). NCDOT told us a while back that they were going to move this road up and have it resurfaced: in 2024. NCDOT award a contract to. Johnson Brothers Utility & Paving Company to resurface the road. As oft the last update that I got on 11/15/2024 they were 45% complete with the work on the road.I imagine that was some oft the cracks they filled. The contract was supposed to be completed by 11/15/2024. I am waiting for another update from NCDOT.. At our. January workshop meetingI will probably have aj proposal to discuss from NCDOT fori improvements to thel Iris Bryant/Norris Road/NC 82 intersection, and potentially some other projects in our Town Limits. Iwish to say thank you to our Town Staff for stepping up and planning the Erwin Christmas Tree Lightening and Christmas Parade this year. The events were dropped on us with very little time, and Ithink both events went well. Ihave heard al lot of positive feedback. At our budget retreat next year, we will need to discuss the fact that the' Town will bel handling this event and other events next year. The Erwin Area Chamber of Commerce is planning on still holding Denim Days but no other events. I would also like to thank the member ofthis board for your supporti in allotting dollars for the events and forl helping us obtain some sponsors for the event. Thank you The Planned Unit] Development that is supposed to bel built offo of'St. Matthews Road is still in the works. They are still waiting on approval from the North Carolina Department of Environmental Quality for the water lines from what IH have been told. They have a survey company working on preparing phase one oft the development to be submitted to the' Town soon. organization and their organization. job class specifications should be completed by March 2025. toa anyone else that helped planned or sponsored the events. MINUTES CONTINUED FROM DECEMBER: 5,2024 ADJOURNMENT Commissioner Blackmon made aj motion to adjourn at 7:49 P.M. and was seconded by Commissioner Nelson. The Board voted unanimously. MINUTES RECORDED AND' TYPED BY LAUREN EVANS TOWN CLERK ATTEST: SE YRQUAb Katelan Blount Deputy Town Clerk Randy Baker Mayor