City of Mount Airy Council Chamber Regular Board Meeting Municipal Building April 3, 2025 300 South Main Street 6:00 pm Mount Airy, N.C. This Meeting will be held in the Council Chamber of the Mount Airy Municipal Building and also virtually by viewing through the following Zoom link: htrs/us0web.zom.u81/84291890678 using password COMA if prompted. You may also view this meeting via Facebook Live by connecting to the City's Facebook page The City ofMount Airy, NC. Link will be posted on www.mountairy.or the day of the meeting. AGENDA Welcome and Call to Order. Mayor Cawley Invocation. Mayor Cawley Pledge of Allegiance. Everyone Items for Discussion and Possible Action 1.) APPROVAL OF AGENDA: 2.) CONSENT AGENDA: The consent agenda is comprised of matters of routine business that do not require discussion by. the Board. Items included on this agenda are indicated with an asterisk (*) and will all be considered with one motion by the Board. Should a Board member wish to remove an item from the consent agenda, that item will be considered in its listed place on the agenda. a) **Approval of Minutes: February 18, 2025 Strategic Planning Meeting 3.) PUBLIC HEARINGS: 4.) SPECIAL RECOGNITIONS: 5.) PRESENTATIONS: a) Franklin Street Streetscape Project Update: Darren Lewis 6.) PUBLIC FORUM: 7.) ITEMS REMOVED FROM CONSENT AGENDA: 8.) OLD BUSINESS: 9.) NEW BUSINESS: a) Resolution Approving Interlocal Agreement for 911 Fund Distributions: Resolution No. 2025-047 b) Resolution Authorizing Staff to Make Application for PARTF Grant: Resolution No. 2025-048 10.) OTHER BUSINESS: 11.) REMARKS BY OFFICIALS: a. City Council b. City Manager C. City Attorney 12.) CLARIFICATIONREBUTTAL BY MAYOR AND CITY COUNCIL: 13.) CLOSED SESSION: a) Pursuant to NCGS 143-318.11(a)(4) Economic Development b) Pursuant to NCGS 143-318.11(a)(6) Personnel 14.) ADJOURNMENT: MOUNT AIRY, NORTH CAROLINA STRATEGIC PLANNING MIEETING February 18, 2025 MEMBERS PRESENT: Mayor Jon Cawley, Commissioners David Hall, Calvin Vaughn, Chad Hutchens, Phillip Thacker and Deborah Cochran. Mayor Cawley welcomed everyone and called the meeting to order. APPROVALOF AMENDED AGENDA: Mayor Cawley stated the agenda was amended to switeh the dates of the Strategie Planning Meeting agendas (Items on the February 19, 2025 agenda to be discussed on February 18, 2025 and the items on the February 18, 2025 agenda to be diseussed on February 19, 2025) due to the possible inclement weather. On motion by Commissioner Cochran and passed unanimously, the agenda was approved as amended. NEW BUSINESS a) City Manager Goals and Objeetives City Manager Darren Lewis stated the following: Before we get started, I would like the Board to inform the City staff what you expect to hear during the meeting. Mayor Cawley: I would like to know from the Department Heads what you need to do your job well. Maybe if you have time, tell us why that item is needed and not something else. Commissioner Hutchens: I will echo what the Mayor said. What are your needs and how can we address your needs, whether it be personnel or equipment, and how best to serve our citizens. Commissioner Cochran: Make sure our tax dollars are spent wisely taking citizens into account as well as the future of the City. I trust the City Manager, Assistant City Manager, and the Department Heads in their unwavering commitment to our City. We see a lot of waste in our federal government but I do not see that here in our City. Ijust want to hear what your needs are. Commissioner Vaughn: I would like to hear what your priorities and goals are as well as some successes. I think this responsibility is important to most everyone. Please share some things that you have done to demonstrate how you helped the City function without overspending. Commissioner Hall: I am here to hear what the Department Heads need, to hear their focus and priorities, and where they are going this year. Also, how they will help to keep the tax dollars as low as we can for our citizens. Commissioner Thacker: Last year, I came here to learn more about the City. I want to give you the opportunity to tell us what you need and what is going on and what we can do to help. Darren Lewis: Hopefully, over the next two days, the Board will receive a lot of good information. Ia am committed to serve the community and ensure that the City remains a vibrant place. I am sure with City staff, there is no question this will be accomplished. Through our collaborative strategic planning and this amazing staff, we have achieved significant milestones this past budget year and we foresee this to continue throughout the next year. There are numerous projects taking place that will carry over into the next couple of budget years that we need to make sure to consider as we are looking at the planning process. You will be impressed with all the Department Heads and what they are going to share with you over the next two days. We are excited about 1 our long-term planning and our goals and objectives. You will hear a lot of our highlights and achievements that were accomplished over the last year/year and a half. We are asking you for some of your guidance for the FY 2025-2026 budget along with projects that are in the works. Together, we will continue to be good stewards of City tax dollars. The City's future is in great hands. I am confident that we are going to be able to overcome any challenges that may arise and again, we will continue to be responsible with tax dollars. I ask each of you to think of some of these words as you are making some decisions today: Innovative, Advanced, Being Progressive, Next Generation, Forward Thinking, Cutting Edge, State of the Art, Sustainable, Transformative, Evolving, and Upgrading. Please keep all those key words in mind moving forward as we plan for Mount Airy and for us to continue to be a thriving community for our residents and visitors. We want to continue to strive for financial stability and efficiency. We are going to ensure, with your leadership, that we will have a balanced budget and fiscal responsibility. We will continue to be transparent and encourage City engagement as Commissioner Cochran expressed earlier while relying on the experience and expertise of our Department Heads as they continue to help guide us through the tough decisions that are made. We will continue to streamline any City services, increase efficiencies, and reduce waste when able. Infrastructure improvements throughout the city will continue to remain a priority. We will continue to focus on quality of life improvements. Our culture and recreation opportunities continue to be a priority of what the residents and visitors want. Some of the infrastructure and accessibility needs are a big part of that, along with the community pride. Public Safety is going to continue to remain a paramount and as a top priority. We will continue to support our Fire Department and Police Department making sure they have what they need to keep our community safe. That is on top of the great quality of life amenities we have. We will continue to support them as they enforce all of our laws and ordinances while reducing crime in our community. Economic development and job growth is another priority. Planning Director Byron Brown and Public Works Director Mitch Williams are two of the big stake holders that continue to lead these efforts. We are working with the Surry Economic Development Partnership on a weekly basis regarding a lot of different projects that are coming to the area and some that are already here. We want to continue to support the businesses when they move here and at the same time, take care of our local businesses that are already here. I want us to do what we can (within our means) to help a business or resident who wants to create a new business. We don't want to be a stumbling block for anyone, but at the same time, we want to make sure they are doing what they need to do as well. b) Street Lighting: Darren indicated that he has spoken with Duke Energy. As everyone knows, Duke Energy is continuing to work on projects throughout Surry County. They are leasing the City-owned parking lot on Franklin Street for their equipment. An issue that has been mentioned is North Main Street being darker than it used to be. Mitch Williams has checked this area out to make sure the streetlights are within the City's ordinance (between 250 feet and 400 feet apart). There were a couple of lights that have not been replaced yet, which could be some of the issue. Duke Energy indicated they are working with a couple of different contractors and a lot oft the new poles have gone up. It is two contractors-one putting the new poles in and the other putting up the new lighting. It is a work in progress. The new lighting will be LED, which is brighter and consume less electricity. These lights will improve visibility and safety. Duke Energy feels after it is all in place, 2 everyone will be pleased. Long term, it should be a cost savings. Please remember this is a work in progress. Mayor Cawley mentioned that some citizen's power continues to go out. Businesses can't do business without power. Chief Poindexter indicated that most of the power outage during the day is because ofthese upgrades. Some are also because of downed trees. Darren stated that some of their work has caused these outages and they are not scheduled outages. He will follow up with Duke Energy about the outages, along with putting something on social media. Duke Energy is working on numerous projects throughout the City limits and the County. c) Police Department Updates: Chief Watson reviewed the Police Department 2024 achievements and goals for fiscal year 2025- 2026. Highlights for 2024: --Received roughly 96 calls per day and approximately 35,238 calls for the year. There was not an officer available to answer a call 232 times during this period. The shift supervisor had to prioritize these calls on each occasion. --total of 782 arrest (84 DWI). --1,473 citations. --833 traffic crashes-79 of those crashes had personal injury. 144 of those crashes were hit and run, 32 were DWI, and three were fatalities. --Major events: Break and enter theft in the E. Pine Street/Riverside Drive area stealing vehicles and breaking into businesses. There was over $100,000 worth of property recovered with 54 felony arrests. One peeping incident. Officer involved shooting where K-9 Draco was killed. City officers were up front along with the Surry County Sheriff's officers. These types of incidents take a toll on the department. --There were 27 special events including the Autumn Leaves Festival. Chief Watson mentioned it is good to have a relationship where citizens don't mind calling the police. The resolution may not be what they feel is just, but it will be legal. Darren feels the Chief and his staff do a great job when they receive a complaint-they go out and investigate it and do a good job following up. Chief Watson said when they do follow up, it may not be the response that person wants but they need to trust the process and realize that the officers are invested in the community and want it to be a safe place. Goals for FY 2025-2026: Remuiting/Retention. Retention is an ongoing issue. The City needs to have a better retention strategy on how to retain employees. --Delivery of Services. They are always looking for ways to improve. -Training. Need to be self-sufficient in the community while being able to do a little bit of everything. -Succession Planning. They want to be able to hire in-house to take care of the needs of the City. --Fiscal Responsibility. Needs to be taken seriously because funding comes from citizens. -Equipment. The biggest equipment need is police vehicles. -Staffing. Close to be fully staffed, but not quite there. Need some experienced officers to be placed into supervision positions. It is imperative to find a way to get the people in the right positions. Need incentives to keep employees. 3 Darren Lewis stated retention is true for all City departments. There are employees who are going on 30-years of service. A comprehensive approach needs to be looked at for these positions. There has been a lot of turnover with the younger generation, who are leaving for more pay. The City needs to look for creative ways to retain employees for long-term and how to be more competitive. Communities around the City are providing much better benefit packages than Mount Airy. Farmer's Market Update: Darren said the Surry County Farmer's Market is wanting to relocate to the public parking lot located on Virginia Street. Chief Watson stated the Police Department should have been involved with this discussion on the front end-before he can give a response, he needs to know what they envision in the lot on Virginia Street. Darren stated the Farmer's Market feels the Virginia Street lot will allow them to grow. That parking lot is the least utilized public parking lot in the downtown area. He would not recommend the lots on Franklin Street and Moore Avenue because they are the most utilized. Intersections Rockford Street/ Haymore Street/ N Main Street: Chief Watson updated the Board on complaints received about the intersection of Rockford Street and Haymore Street, West Haymore Street, and North Main Street (from Lebanon Street to Poplar Street). When complaints relating to traffic crashes and speeding are received, the Police Department does the following: 1-look at crash data from reports and look at contributing circumstances because the reports show that 94% of traffic crashes in these areas are related to human error-too fast, impaired, fatigue, and distractions. 2-Radar speed analyzer placed into the particular area of concern to gather speed data and traffic counts. 3-Officers placed in marked vehicles. These three areas of concern are the intersection at Rockford Street and Haymore Street, West Haymore Street, and N. Main Street from Lebanon Street to Poplar Street. Please keep in mind that Rockford Street and North Main Street are NCDOT roads, meaning they are the responsibility of NCDOT. West Haymore is a City street. Rockford Street/Haymore Street Intersection: In 2024, there were six crashes related to this intersection-four of those were failure to yield and two were results of someone neglecting to stop at the stop sign. Looking at the stats for a two-week period, the average daily count of traffic coming into town on Rockford was 2,677 vehicles and a total of 37,818 for the two-week period. The 85-percentile speed for that location was 35-mph. Two-week period of traffic going out of town, the average daily count was 2,927 vehicles and a total of 41,473 for the two-week period. The 85-percentile speed was 37-mph. Speed was not the issue; the issue was human error. When NCDOT looks at those intersections, they will look at traffic counts, accidents, existing signage, and types of motor vehicles that use that street. In speaking with the DOT representative, they asked ift there was a 25-mph advisory sign and at that present time, there wasn't. The DOT will replace this sign. The City will be placing stop bars four- feet from the intersections at Haymore Street. The City will also place "Stop Sign Ahead" signage on Haymore Street approaching Rockford Street. Darren asked that when/if the Board receives any complaints or concerns that are specific to Rockford and Haymore Streets, please refer those to Chief Watson. West Haymore Street: 4 In 2024, there were zero crashes on West Haymore Street. The speed limit for this street is 25-mph. Looking at the stats for a two-week period on West Haymore Street from South Street to Rockford Street, there were 2,577 vehicles with an average daily count of 128. The 85-percentile speed was 29-mph. For a two-week period from Rockford Street to South Street, there were 3,391 vehicles with an average daily count of 169 vehicles. The 85-percentile speed was 28-mph. To address this complaint, Chief sent officers on 56 different enforcements with only four stops and no tickets written. North Main Street (from Lebanon Street to Poplar Street): In 2024, there were seven crashes (one with personal injury, failure to reduce speed, speeding, too fast for conditions, one hit speed trailer, etc.) on North Main Street from Lebanon Street to Poplar Street. Looking at the stats for a two-week period coming into town, there was a total of 34,556 vehicles with a total daily average of 2,241 vehicles. The 85-percentile speed was 38 mph. The Police Department did special enforcement in this area with very few stops and citations. South Main Street and Church Street Intersection: There have been zero crashes at this intersection for 2024. It is not recommended to have a four- way stop at this intersection. The City tries to stay within the NCDOT standards. Staff looks at all concerns to see what the issues are and looks to see how to improve the community. d) Project Update: Darren Lewis, City Manager Darren Lewis reviewed the grant projects for the City of Mount Airy. There are 23 grant projects totaling $30,456,513. Only two of these projects have the actual costs and the City has entered purchase orders for these two projects-the AARP Grant is $16,200 and the Mount Airy Library State Allocation Grant is $1.5 million. AARP Grant $16,200-This grant is amenity upgrades for Market Street including tables, benches, bike racks, and recycling containers. The amenities have been purchased and everything has been installed. Stanton Foundation Grant $15,000-This grant was awarded for another Police K9. Joker will join the Police Department in approximately two weeks. NRPA Grant-This grant is for a $70,000 Youth Mentorship Grant and a $150,000 Advancing Workforce Developing and Career Readiness Grant. Both of these projects are underway and both are multiple year grants. This will make a big difference for the youth in the community. -Accessible Parks Grant $498,313-This grant is for an accessible playground and improvements at Westwood Park. The City is still waiting on numbers for the tree work, playground equipment, and paving trail. Granite City Greenway Extension/Stream Restoration Grant $4 million-This grant is for Ararat River stream restoration and to extend the Greenway to Jones Intermediate School. The City is still waiting on easements for this project. They are looking at approximately one year before breaking ground. -Division of Water Infrastructure Grants-These grants are for: Water Asset Inventory $100,000, Sewer Asset Inventory $100,000, and Wastewater Treatment Plant Grant $200,000. These grants will help the City to be able to apply for and receive future grants. These are planning documents to help identify the most urgent needs. These grants should be closed out by the end of this calendar year. 5 -Division of Water Infrastructure Grant $1.5 million-This grant is for the Westside Water and Sewer Project, which is underway. Information about this project is on the City website for updates. They are working hard on the water and sewer lines on Franklin Street. The next step will be the conduits for Duke Energy and then sidewalks and the Franklin Street public parking lot. State Allocation $2 million-This allocation is for the Main Street Water Line Replacement project. It will be at least a year before this project begins. -State Allocation $625,000-This allocation is for the expansion of the lobby and entrance area at the Andy Griffith Playhouse. This project is expected to begin soon. -State Allocation $1.5 million-This allocation is for renovations to the Mount Airy Public Library. This project has begun with tree removal and inside renovations. The outside work seems to be complete with the City's Grounds Maintenance Division to finish new landscaping. This grant money was allocated to the City of Mount Airy. City staff: informed the Library to prioritize their needs to fit in this $1.5 million allocation. There was a landscaping plan for the entire campus of City Hall, Surry Arts Council, and Library, which the City did not ask for and did not approve. The City's Grounds Maintenance Division maintains all City property and the City relies on the Supervisor to prepare a landscape concept to be able to maintain. They need to keep in mind that the Grounds Maintenance staff has to maintain that landscape and City property. -T-Mobile Grant $50,000 and NC Commerce Grant $45,000-These grants are for Wayfinding signage in the downtown area. This will help guide visitors downtown. This project will be put out for bid in late spring or early summer. -Golden Leaf Foundation Grant $1.5 million and Rural Infrastructure Grant $1,102,500-These grants are for site development of a City-owned parcel and with the NC Foam (Project Vista) private investment of over $50 million in Westwood Industrial Park. Timmons Engineering will have the drawings soon and City staff will be putting it out for construction bids in the next few weeks. This will be to create the 16-acres site within the Westwood Industrial Park. Omega Construction is the contractor with NC Foam with that piece moving forward as well. Franklin Street Streetscape Project $1,984,500-This project contains four different grants: Rural Transformation grant--$475,000 Rural Transformation grant--$487,500 USDA Tillis Grant-$522,000 Appalachian Regional Commission Grant--$500,000 This project is on Franklin Street from Main Street to South Street including the Franklin Street parking lot along with a commitment of $300,000 to bury the power lines from Main Street to Willow Street. This project is underway and on schedule at this point. The City will continue to educate the businesses of dates that will affect them and be as transparent as possible. Hope for Phase I section from Main Street to Willow Street and parking lot to be completed before the 2025 Autumn Leaves Festival. Balladeer Hotel Private Investment $30+ million-This project is making a lot of progress with major interior work being done. They should have two model rooms ready to be viewed by Marriott by the end of this month. Projected date to open is Spring 2026. This project is currently on schedule. 2 State Allocations for Conference Center $15 million-This is mostly for infrastructure needs, property acquisitions, and an updated site plan. Anticipated ground breaking will be late summer 2025. Final drawings should be completed by late spring. Public Works staff have taken the lead on infrastructure needs working with different contractors and multiple engineers. -North Franklin Road Housing Development (Strickland Farm) Private Investment-This project is still underway with plans being finalized. Blue Ridge Companies anticipates having plans to the City Planning Department and TRC Committee by end of the month for review. Anticipated to develop 80+ lots. Housing is a huge need in the area and across the state. The City has done the due diligence for these projects with some of these grants going back three years. When talking about budget, he asked the Board to take these projects into consideration when discussing Special Appropriations. e) Finance Report: Sherri Coalson, Finance Director reviewed the City of Mount Airy Budget and Fiscal Overview Presentation. FY 2023-2024: General Fund Revenues Sherri indicated that when looking at the Revenues and Expenditures for FY 2023-2024, it looks like there was a deficit of $1.1 million; however, keep in mind that the City transferred $3.8 million to the Capital Investment Fund and also rolled $958,000 into Encumbrances. Total Revenues and Other Financing Sources: Adjusted Budget: $22,719,428 Year to Date Actual: $18,680,975.55 Variance w/Adjusted Budget: ($4,038,452.45) % of Adjusted Budget: 82.22% General Fund Expenditures General Fund Expenditures for FY 2023-2024: Total Expenditures and Other Financing Uses: Adjusted Budget: $22,719,428 Year to Date Actual $19,830,043.48 Variance w/Adjusted Budget: $2,889,384.52 % of Adjusted Budget: 87.28% Encumbrances rolled from FY 2023-2024 to FY 2024-2025: $958,270 Capital Investment Fund Revenues Capital Investment Fund Revenues for FY 2023-2024: Total Revenue and Other Financing Sources: Adjusted Budget: $4,763,386 Year to Date Actual: $4,884,297.91 Variance w/Adjusted Budget: $41,212.57 % of Adjusted Budget: 102.54% Capital Investment Fund Expenditures Capital Investment Fund Expenditures for FY 2023-2024; Total Expenditures and Other Financing Uses: Adjusted Budget: $4,763,386 7 Year to Date Actual: $1,298,184.98 Variance w/Adjusted Budget: $3,465,201.02 % of Adjusted Budget: 27.25% Encumbrances rolled from FY 2023-2024 to FY 2024-2025: $345,165 Water and Sewer Fund Revenues Water and Sewer Fund Revenues for FY 2023-2024 Total Revenue and Other Fimancing Sources: Adjusted Budget: $9,267,629 Year to Date Actual: $7,676,055.01 Variance w/Adjusted Budget: ($1,659,074) % of Adjusted Budget: 82.83% Water and Sewer Fund Expenditures Water and Sewer Fund Expenditures for FY 2023-2024 Total Expenditures and Other Financing Uses: Adjusted Budget: $9,267,629 Year to Date Actual: $7,341,008.55 Variance w/Adjusted Budget: 1,926,620.45 % of Adjusted Budget: 79.21% Encumbrances rolled from FY 2023-2024 to FY 2024-2025: $1,435,880 FY 2024-2025 General Fund Revenues (through December 31, 2024) When looking at revenues year to date, it is at $9.9 million. Unrestricted Intergovernmental Revenue came in at $1.6 million. Total Revenue and Other Financing Sources: Adjusted Budget: $18,344.270 Year to Date: $9,930,382.61 % of Adjusted Budget: 54.13% General Fund Expenditures (through December 31, 2024) The expenditures year to date are $7.4 million. Darren mentioned a lot of these expenditures are seasonal like grounds maintenance and parks and recreation. Total Expenditures and Other Financing Uses: Adjusted Budget: $18,344,270 Year to Date Actual: $7,421,257.10 % of Adjusted Budget: 40.46% Ad Valorem Taxes (Current year through December 2024) Sherri indicated that January is a good month collecting personal property taxes because of the January 5th deadline. Real and Personal Property Tax: 8 Budget; $7,146,000 Actual: $5,997,681.59 Variance: $1,148,318.41 % of Budget: 83.93% Vehicle Tax: Budget: $700,000 Actual: $385,723.82 Variance: $314,276.82 % of Budget: 55.10% Total Current Year Tax: Budget: $7,846,000 Actual: $6,383,404.77 Variance: $1,462,595.23 % of Budget: 81.35% Budgeted revenues for current year property taxes are based on an expected collection rate of 97% for real property and vehicles. The current year tax rate for the City of Mount Airy is $0.60. Collection rate for real and personal property tax as of December 31, 2024 is 80.36%. Property Tax Values Sherri indicated that the Property Tax Values over the last 10 years have gone up. The assessed value for 2024 was $1.3 million estimating that 2025 will be at $1.37 million. Local Option Sales Tax Sherri indicated that counties levy local sales and use taxes. What they share with the City is based on population with Mount Airy receiving 11.9% and Surry County receiving 80.1%. Currently, the levy for Surry County is 2.25%. Surry County does make a hold harmless payment to the incorporated municipalities. This payment is due to the loss of a half-cent local sales tax that occurred pursuant to Medicaid reform legislation (formerly Article 44 tax). The County's Article 39 tax is reduced by the amount of the hold harmless payment. Surry County sent a payment of $985,631 to the city for FY 2023-2024 hold harmless payment. Darren indicated that the sale tax has leveled out after the Covid pandemic. This should give a better idea of what to expect for future budgets. Local Option Sales Tax Budget to Actual Comparison: Retail Month (July thru October) Y/E June 30, 2025 Budget $1,592,000 Y/E June 30, 2025 Actual $1,615,607.61 $ Variance $23,607.61 % Variance 1.48% Sales Tax five-year comparison showed that in 2020 total tax was $3,335,567 and in 2024 total tax was $4,888,784. Electric Sales Tax (formerly Utility Franchise Tax) 9 As of July 1, 2014, electric utilities were subject to a 7% state sales tax rate. The state distributes 44% of the net proceeds of the sales tax, less the cost to the NC Department of Revenue to administer the distribution. The quarter ending in September, the City budgeted $233,000 and gross collection was $267,863 with a variance of $34,863/variance percentage of 14.96%. ABC Profit Distribution This revenue source represents profit distributions from the Mount Airy ABC Board. It is impacted by profits and by working capital requirement of the ABC Board. Distributions by the ABC Board to the City of Mount Airy are made on a quarterly basis after the quarterly results are determined by the ABC Board. Powell Bill Distribution This revenue source is subject to yearly state budget appropriations. Distributions by the State to local governments are made on a semi-annual basis. The distribution to municipalities is allocated based on rates that will be applied on a per capita basis and on a per street mileage basis that will be set by the Powell Bill Unit ofthe NC Department ofTransportation. The amount budgeted is based on estimated population and certified non-system mileage. Budget Actual Variance $360,000 $423,639.36 $63,639.36 Sales and Service Sales and Service includes 91,044,500 Parks and Recreation user fees. At the end of December, Parks and Recreation fees were $558,876. This is up $33,100 from the prior year. Fund Balance Appropriation (Budget Amendments) General Fund $990,770 100% MSD Fund $149,500 100% CIF Fund $1,607,077 106.61% E911 Fund $38,250 100% Debt in the Governmental Funds (as of June 30, 2024) All the debt in the governmental capital assets fund was the Mount Airy Fire Department for two trucks and a communication system. Two of these debts will be paid off in FY 2028/2029 and the other one will be paid off in 2032. The debt service payment will be around $188,407 per year for a total of$ $1,006,021 that includes principal and interest. Darren said that when talking about debt, one of the recommendations he will make is to pay off one of the loans for the Fire Department communication system. Capital Investment Fund The Capital Investment Fund goes toward funding City aclitieslequipment capital items. Capital Investment Fund Revenues (Through December 31, 2024) Total revenue and other financing sources: Adjusted Budget: $2,000,077 Year to Date Actual: $224,418.34 % of Adjusted Budget: 11.22% 10 Capital Investment Fund Expenditures (Through December 31, 2024) Total expenditures and other financing uses: Adjusted Budget $2,000,077 Year to Date Actual $866,119.50 % of Adjusted Budget 44.30% Water and Sewer Fund Revenues are always difficult to project-staff has to estimate what revenues will be based on trends in consumption pattern of customer use. Changes in major users can cause significant volatility in revenues. Water and Sewer Fund Revenues (Through December 31, 2024) Total revenue and other financing sources: Adjusted Budget: $9,029,380 Year to Date Actual: $3,533,787.81 % of Adjusted Budget: 39.14% Water and Sewer Fund Expenditures (Through December 31, 2024) Total expenditures and other financing uses: Adjusted Budget: $9,029,380 Year to Date Actual $3,917,108.31 % of Adjusted Budget 43.38% Water and Sewer Billed Through December 2024 The billed charges are up 5.02% and the Billed Consumption is down 2.13%. Some of this has to do with some of the top 10 customers. One of the top ten customers have shut down a division and are not using the amount of water that they normally use. Principal Water and Sewer Customers (Through December 2024) Water and Sewer Related Charges 91,469,309 Percentage ofTotal Water and Sewer Related Charges 22.26% Debt for Water and Sewer Capital Assets (2025-2033) Principal: $3,727,692 Interest: $314,167 Total: $4,041,859 Water and Sewer Rates City staff will not be recommending a water and sewer increase for the 2025-2026 fiscal year. Darren indicated that the water and sewer rates will need to continue to be monitored because of the cost to the City. Fund Balance Information (As of June 30, 2024) There are three different levels for the Fund Balance that is defined by the Local Government Commission (LGC). Total Fund Balance Less: Non-Spendable (not in cash form, not available) 11 Less: Stabilization by State Statue (by state law. not available) Available Fund Balance This is the calculation utilized as the basis for comparing Mount Airy to other units and calculating Mount Airy's fund balance percentages. Combined General Fund for Reporting 2023-24 Available Fund Balance $19,043,417 Combined General Fund for Reporting 2023-24 Unassigned Fund Balance $16,897,590 f) Fund Balance Poliey: Sherri Coalson stated the policy for the City Fund Balance is to keep at least 45% (or $6 million) in the Fund Balance. Anything above that will be moved to the Capital Investment Fund (CIF). In this policy, any Fund Balance that exceeds 45% (or $6 million) will be separated and reserved for capital, outside agency funding, and one-time expenditures based upon board action. Pam Stone indicated the Board enacted the Fund Balance policy to keep 45% of the expenditures in the General Fund and then come up with this transfer each year. Without this transfer, the CIF would be useless. The CIF was created to pay for things that were one-time expenditures. Please keep this in mind when looking at the Fund Balance. The Fund Balance needs to be to the good or there will be no money to transfer to the CIF to purchase capital items or pay for special appropriations for outside agencies. For the Westwood Industrial Park grant project, the City received a $1.5 million grant; however, the City will add $400,000 for this project. With the Accessible Parks grant, the City will add $100,000 for that project as well. Without having any money in the Fund Balance, there would be no money to transfer. This year, there is $3.4 million to be transferred to the CIF from the Fund Balance. This is a positive thing putting money into that fund to be able to do the current multiple grant projects. Darren stated that staff looks at Fund Balance as a way to continue to reinvest in City departments and the City as a whole. When the CIF was created, the first year or sO, there was no money in it. Now, they are able to transfer money while keeping the Fund Balance at the 45% (or $6 million) per the policy. This will allow to work on some of these grant projects. Water & Sewer Fund Sherri indicated that the change in net investment in capital assets was $4,630,100. Some of this was because of the Flat Rock water lines and some generators. The change in net position was $4.9 million. When the auditor was here and presented the budget, the FPIC recommends the City be at a threshold of 50% but the City is at 44%. Even though $4 million was added in assets, the depreciation was at $2.1 million. Even though $4 million was added, the percentage only went up 1%. In order to get to 50%, the City will need to add $2 million in assets/year just to break even. Pam stated the Water and Sewer Fund is a fund the City needs to continuously monitor. It needs to be taken seriously and City staff continues to monitor. This year, the Flat Rock water lines were transferred to the City adding over $4 million to our assets and still with everything the City did in house, the FPIC threshold only went up 1%. The goal is not to get to 50%, but to be above that. The magnitude of dollars that will take to get there is huge and one answeri is to sell more water. In the past with the annexations, the City borrowed a lot of money to put in the lines and that helped the situation. If Mitch Williams finds an area that needs rehabbing, the City tries for grants to improve the infrastructure and help save rates. The annexation debt will be paid off fall of 2028 with only one loan left for Maple/Merritt. If1 there is a big area that needs rehabbing, the City will 12 have the ability to do a combination of loans and grants along with selling more water. Water and sewer lines are very expensive. The City isn't alone in this situation. What the State Treasurer Office is looking for is for the City to show a plan and working to make it better. They want to know the City is taking this seriously and is working to improve the situation. Mayor Cawley asked how much money was contributed for 2024 to improve that percentage to get closer to 50%. Darren indicated that in FY 2024-25, $500,000 was allocated for water and sewer capital projects. Pam said if the City doesn't do $2 million each year, they are going backwards with the depreciation. One of the problems with grants is they look at the City's water and sewer rates. If the rates are too low, that lowers the score on receiving the grant because they feel the City hasn't done everything they can to bring in revenue. g) 89-Interconnect Project: Darren Lewis stated the Town of Dobson has approached the City of Mount Airy asking the City to take over the water lines on Highway 89. The City controls the lines to Maple Grove Church Road. After this road, the lines and water come from Dobson. Dobson is asking the City to change over those lines. Dobson is having capacity issues to push the water that far. For this changeover to happen, it would be a $225,000 cost. Dobson is recommending a three-way cost sharing between the Town of Dobson, City of Mount Airy, and Surry County. This would give the City over $200,000 in additional revenue to the water fund each year by taking on these new customers. Of course, that will also come with the ongoing maintenance of those lines. Mayor Cawley asked what the estimated cost of maintenance would be for these lines. Mitch answered roughly $30,000 per year. Darren said the City is already maintaining the sewer lines up to that area. Please keep in mind that Surry County has to also consider this. Commissioner Thacker made a motion to move forward with this interconneet projeet with the City taking over those lines on Highway 89 past Maple Grove Church Road contingent upon a three-way cost sharing agreement between the City of Mount Airy, Town of Dobson, and Surry County and it was passed unanimously. h) Special Appropriations Discussion: Darren Lewis, Gity Manager Darren Lewis stated that historically, the City has funded four special agency requests every year. Last year, the Board approved a policy, which is to fund the Special Appropriation requests based on how well the City did the previous year. Everyone agrees to make sure that City departments are the number one priority for the City before any funding for outside agencies. The City did have an above average year last year with revenues and expenditures. He recommends funding the Special Appropriation requests at the rates approved in the past. A couple of the requests are above what has been funded in the past. Remember, there are $30 million in projects that are still moving forward and he does not recommend funding these agencies above what has been done in the past. The following are the requests: -Mount Airy Rescue Squad: $10,000 funded last year. Current request-$27,500. Surry Arts Council: $87,500 funded last year. Current request-$87,500. The Arts Council properties are all City-owned buildings with the City maintaining the building and grounds for these properties. 13 Mount Airy Public Library: $103,650 funded last year. Current request-$237,A43.98. This request includes the $103,650 as well as funding for shelving. The Library was awarded a $1.5 million grant for renovations and those renovations are currently at approximately $1.4 million. They ask for that remaining $100,000 to go towards this shelving request. Darren informed them there are change orders coming in for the interior of the building, roof, windows, and doors, which is the priority of the construction. He feels it is too premature for the City to commit for this shelving purchase. The City will look at this project once all change orders are in place. -Mount Airy Museum: $10,000 funded last year. No current request received. The Museum Director scheduled a meeting with Darren and the Mayor asking for a large request $300,000 on top of the $10,000. Darren informed him that their request would need to be received in writing by Friday, February 14th and nothing was received. Darren received the other three agency's requests prior to the Friday deadline. Darren stated the City's lobbyist has asked for some of the City's priorities. The lobbyist mentioned he received a request from the Library and Darren informed him that was not a request from City staff or Board members. Commissioner Hutchens agreed that the Library's additional request needs to be addressed after the renovation project was completed. Darren stated the City received the grant funding for this project with the priority being for the building and the exterior landscaping, which is included in the scope of work. The contractor said some of the trees and landscaping were causing issues to the building and this is why the exterior has been gutted for the roof and foundation issues. Commissioner Cochran agrees with guidance to fund these agencies what has been funded in the past. The City has priority projects-the City needs to be put first. Darren stated that the Rescue Squad informed him that 80% of their calls were identified coming from within the City limits of Mount Airy, sO they are looking to hire a part-time paid position for that. Also last year, funding for the Rescue Squad went from $7,500 to $10,000. Commissioner Vaughn asked Darren if he was recommending $87,500 for the Arts Council, $103,650 for the Library, and $10,000 for the Rescue Squad. Darren stated that yes, that is his recommendation. Also, he hasn't received any requests from the Museum even for the $10,000 that was funded last year sO this will be up to the Board on how to proceed with them. Darren recommends if the Board chooses to fund the Rescue Squad at $27,500, to look at the agencies based off of the City's previous year. If the City were to go in the red or if there is a recession and the funds aren't there next year, any of these four agencies will be up for non- funding. Darren recommends the Board to vote on these funding requests individually. The funds to these agencies, should the board approve, will be paid out prior to June 30, 2024. Surry Arts Council Commissioner Vaughn made a motion to fund the Surry Arts Council in the amount of $87,500 to be paid prior to June 30, 2024 and it was passed unanimously. Mount Airy Rescue Squad Commissioner Thacker made a motion to fund the Mount Airy Rescue Squad for the total amount of $27,500 ($10,000 request and additional $17,500 for part-time staffing) and it was passed unanimously. City Manager indicated the contract will be documented that proof of employment is required for the additional funding. 14 Mount Airy Public Library Commissioner Hutchens made a motion to fund the Mount Airy Public Library in the amount of $103,650 and it was passed unanimously. Mount Airy Museum of Regional History No written request was received from the Mount Airy Museum of Regional History for funding; therefore, no funding was approved. Surry County Economic Development Partnership Dues: Darren Lewis mentioned that the City budgets $40,000 for the Surry County Economic Development Partnership dues each year. The SCEDP has requested an increase to $55,000 beginning with the FY 2025-2026 year. This increase will be used to help hire an additional employee to help with recruiting efforts for new businesses as well as working with existing businesses. This new proposal is based off population. This item will be discussed during the budget discussion. i) Revaluation of Properties in Surry County: Darren stated that revaluation of properties happens every four years. The notices have gone out to all the property owners within Surry County. Before any appeals, it looks like the City of Mount Airy will be bringing in an additional $1.1 million in revenue-remember, this is before any appeals. The residents and business owners have the right to appeal. It is based off of market rates, a lot of factors coming into this on how property is sold in an area. The purpose of the reval is to basically catch up to the market rates of the properties. Since 2016, there has been an increase of 61% in market rate values for properties. It is critical that the City maintain the services associated with these reval increases. Property taxes are one of the largest contributors to the City's budget. The cost to provide services continues to increase. These investments are to attract new businesses to strengthen the local economy along with additional revenue to help be a striving community. To lower a tax rate could be problematic moving forward. His recommendation is to keep the City's tax rate the same at $0.60 because the City relies heavily on property taxes. Pam mentioned that last year, revenue from property taxes was 43% of the entire budget. No property is the same when it is revaluated-one property may go up $30,000 the other go up $3,000. Nothing is getting cheaper for the City or the County. Historically, most municipalities do not lower their tax rate based on revaluation-they look at it as a future savings and investment into their community. Mayor Cawley stated to keep the tax rate at $0.60, it needs to be justified. The City has absorbed a lot of expenses and there are still all of the projects going on that costs aren't definite. Expenses continue to increase-tires are not what they used to cost, electricity has increased, etc. The sales taxes revenues have leveled. Darren said the County is the benefactor for the sales tax. The interest rate for the communication system for the fire department is 4.69% and his recommendation is to pay this loan off. Pam stated the interest earned on grant funds goes back into that grant to be used for the grant item(s). Darren's recommendation moving forward is to let Sherri, Pam and himself continue to work with the department heads to create a balanced budget based off oft the needs for each department. Also moving forward with the $0.60 tax rate, staff has to consider looking at what was talked about today and hearing from the other departments later. Retention efforts need to be looked at for employees. Over the past several years, a 2% cost of living increase was given to the employees, which is lower than the neighboring municipalities. He recommends a 4% increase or $1,800 for employees in FY 2025-2026 across the board. Looking at the value of that 4% increase, it looks 15 more of equating to $1,800 per employee. Darren recommends increasing the average for full-time employees $15/hour. He also recommends continuing to provide capital needs for some of the departments. Last year, $500,000 was budgeted for capital for the departments. There was also $500,000 budgeted for projects in the community, which came out of the Capital Investment Fund (CIF). He recommends to increase these capital funds to $1 million each. The increase in revaluation money will help to continue to invest and put back into the CIF. Infrastructure needs are not going away and will continue to cost more. Right now, capital requests are prioritized by staff and capital requests were $4 million for FY 2025-2026. The City has never funded every capital request for that year. This revaluation increase will help do some work on the sidewalks, purchase more police vehicles, etc. Darren indicated the other three municipalities in Surry County are not proposing a tax decrease. City staff can bring a balanced budget at the $0.60 tax rate and this includes the revaluation properties with the goal to be able to fund more capital items than over the past couple of years. Personnel openings do throw off a budget. The City has to budget for 100% personnel even if there are vacancies. j) Budget Directive Commissioner Thacker is confused about the tax rate because he is hearing different figures. He would like to do as much as they can with the budget but they need to be careful to not go out of boundaries. He would like more information and clarification. Darren stated that $17.3 million was the City's total revenue. The $0.60 property tax rate is 43% of the revenues then the revaluation will add $1.1 million (before appeals) to the revenues. Commissioner Thacker wants the City to use the money wisely. Commissioner Hall definitely does not want a tax increase. When hearing from citizens, they express concern about not seeing where their money is going (roads and sidewalks). He did say he trusts what Darren and staff are doing. Commissioner Vaughn suggested looking at the other debts see how the City could save by paying them off as well. The property revaluation adds to the City's revenue. Asked if there is somewhere to help the citizens in addition to funding all of the things that the City department's need. Darren said everything is increasing in cost including supplies, materials, labor, and employee retention- these funds will help with some of these. Mayor Cawley said they don't want to use the fund balance to balance the budget. Darren mentioned if the City wants businesses and companies to come, they need to look at infrastructure. There are major needs and there are talks about needing to create an additional Industrial Park, which may be sooner than later. The City would like to be able to look towards the future. Commissioner Cochran agrees they need to pay off the debt for the Fire Department. It is also important to save money having a solid fund balance. They have to be cautious with spending- what they do has an impact on the citizens. Mayor Cawley asked the Board what they wanted to do with the tax rate. He feels they should keep it at $0.60. Commissioner Hutchens would like to see a couple of different variants-at $0.58 and $0.60. He wants the Fire and Police Departments to have what they need and Public Works to be able to take care of infrastructure, but he doesn't want to continue to have money just sitting and not being used. 16 Darren stated he is going to request an additional $1 million for Capital needs and another million for the existing projects-that is $2 million of a request being made without any personnel increases, additional small equipment needs, or anything of that nature. Commissioner Thacker would like to see what a $0.58 tax rate would look like. Commissioner Cochran would also like to see $0.58 tax rate with all of the projects and capital needs-she does not feel a need to cut back to $0.54. Darren stated if the Board approves a $0.58 tax rate, City staff will create a budget based on that. k) Department Updates: Human Resources Department: Susan Jones, Human Resources Director, reviewed the Department's 2024 achievements and goals for fiscal year 2025-2026. Highlights for 2024: -Completed insurance renewal for FY 2024/2025 with a 6.25% decrease in Health Insurance and 5% decrease for Dental Insurance. Vision Insurance stayed the same. -Started offering Long-Term Care Insurance to employees (no cost to the City). -Added an additional retirement program for employees with the adoption of a NC 457 retirement program (no cost to the City). --Consolidated voluntary benefits for employees-they are all now through one company. -Completed a Processes Manual for Human Resources. The project is ongoing and is updated regularly. -A new self-contained recyclable collection vehicle was purchased. -An AED was purchased for the Police Department. -A chainsaw safety class was held for Public Works and Fire Department personnel. --The Garage oversaw the addition of four new gas heaters being installed in the warehouse area of Public Works. --All Divisions held monthly safety meetings. All city facilities were inspected by the City of Mount Airy Safety Team with all issues and concerns being identified and corrected. Goals for 2025: --Have new security cameras installed at City Hall (these were awarded through a NC League of Municipalities Safety Grant). -Purchase Portable Carbon Monoxide and Cyanide Alarms for the Fire Department (awarded through a League of Municipalities Safety Grant). --Look at potential new tools to help with recruitment and retention. -Complete purchase of New Hire Safety Videos for all new employees. --Complete insurance renewals for 2025/2026 fiscal year. Commissioner Vaughn asked about employee appreciation events. Susan informed him the City has an Employee Appreciation Committee and they try to do something each quarter for the employees. Mayor Cawley asked her thoughts about morale of the City employees to which Susan replied it could be better. She feels it stems from the departments being short staff and the employees having to pick up that slack. It takes over 30 days from the time a position is posted and a person starts. People can go to work at Hobby Lobby making $17 an hour and not work on Sundays. At the City, there are departments that are on 24-hours/7-days a week and some employees are on call nights/weekends. The younger generation does not care that the City offers retirement benefits. Darren mentioned they need to be careful when looking at a pay scale if they are looking to lower the tax rate. 17 Planning Department: Byron Brown, Planning Director, reviewed the Planning Department's 2024 achievements and goals for fiscal year 2025-2026. Highlights for 2024: -Assisted with establishing and managing zoning regulations -Reviewed development proposals -Communicated and educated the public -Ensured new projects align with community goals -Prepared reports and maps -Completed Preliminary site inspections -Addressed Code Complaints -Coordination of Technical Review Committee meetings and applicants project reviews Goals for 2025: -Continue/complete digitization of Planning documents via cloud-based scanning project (approximate cost of $150,000 to $180,000) --Create Requests for Proposals for Comprehensive Plan Update and hire consultant -Continue updates to City of Mount Airy Zoning Ordinance --Continue updates to Planning Department webpage --Fill various Board vacancies and increase awareness of community service opportunities --Hire additional staff or interns for digitizing and other ad hoc projects I) Mount Airy City Schools Request for SRO: Darren Lewis informed the Board that the Mount Airy City Schools has asked for an additional SRO officer. He recommended the City paying for two months' salary for the SRO position to which the Schools requested four months. Millennium Charter School has also asked for an SRO. He recommends the City pay for two months' salary that will include additional costs of vehicle, uniforms, etc. and will fall under the Police Department. This will be $15,000/year for the two months' salary plus approximately $150,000 for vehicle, training, uniforms, etc. Some of the funding is based off State funding for the School. Ift that goes away, they will be coming to the City for additional funding. Asked the Board to keep in mind this may be additional costs that will be coming to the City down the pipeline. m) Recess: On motion by Commissioner Thacker and passed unanimously, the meeting was recessed to Wednesday, February 19th at 12:15 at the Downstairs Conference Room at City Hall. Approved and adopted this the 3rd say of April, 2025. Mayor, Jon Cawley ATTEST: Melissa N. Brame, City Clerk 18 RESOLUTION NUMBER 2025-047 RESOLUTION APPROVING INTERLOCAL AGREEMENT BETWEEN THE CITY OF MOUNT AIRY AND COUNTY OF SURRY-DISTRIBUTION OF 911 FUNDS WHEREAS, a monthly 911 service charge is imposed on each active voice communications service connection that is capable of accessing the 911 system with the charge being payable by the subscriber to the provider and remitted to the State's 911 Board; and WHEREAS, Surry County is a designated primary Public Safety Answering Point (PSAP) and under current legislation, the State's 911 Board must make monthly distributions to primary PSAPs from the amount allocated to the 911 Fund for PSAPs; and WHEREAS, in order for the City of Mount Airy (a secondary PSAP) to receive 911 funds, it is necessary for the City to enter into an interlocal agreement with the County in which the County will receive 911 surcharge funding and return a portion to the City on the condition the City agrees to hold the County harmless in the events the funds are not used by the City in a manner consistent with the law; and WHEREAS, it is staff recommendation to approve an interlocal agreement with the County for said 911 service charge funds: NOW, THEREFORE BE IT RESOLVED BY THE CITY OF MOUNT AIRY BOARD OF COMMISSIONERS MEETING IN OPEN SESSIONTHAT: Section 1. The Board of Commissioners does hereby approve the Interlocal Agreement between the City of Mount Airy and the County of Surry for the distribution of911 funds. Section 2. The Board of Commissioners does hereby authorize the City Manager to execute said Interlocal Agreement per review and approval by the City Attorney. Section 3. This resolution shall become effective upon approval. Approved and adopted this the 3rd say of April, 2025. Jon Cawley, Mayor ATTEST: Melissa N. Brame, City Clerk North Carolina INTERLOCAL AGREEMENT Surry County THIS AGREEMENT made and entered into by and between Surry County, North Carolina, on behalf of its 911 Communications Department ("County"), and the City of Mount Airy, North Carolina ("City"); WHEREAS, a monthly 911 service charge is imposed on each active voice communications service connection that is capable of accessing the 911 system; and the service charge is payable by the subscriber to the voice communications service provider and must be remitted by the provider to the State's 911 Board; WHEREAS, Surry County is designated as a primary Public Safety Answering Point (PSAP), the first point of reception of a 911 call, and under the current legislation, the State's 911 Board must make monthly distributions to primary PSAP from the amount allocated to the 911 Fund for PSAPS; WHEREAS, the only way that a secondary PSAP can receive 911 surcharge funds is through an agreement with a primary PSAP, therefore, in order to receive 911 funding, it is necessary that City enter into an interlocal agreement with the County in which the County will receive 911 surcharge funding and return a portion of it to the City on the condition that the City agrees to hold the County harmless in the event the funds are not used by the City in a manner consistent with the law; and WHEREAS, on the recommendation of the 911 Communications Department Director and the County Manager, on March 17th, 2025 the Surry County Board of Commissioners adopted a Resolution ratifying and authorizing execution of an interlocal agreement between Surry, on behalf of its 911 Communications Department, and the City of Mount Airy, for the distribution of 911 funds, pursuant to the provisions of N.C.G.S. 160A-461. Witnesseth: For the purposes and subject to the terms and conditions herein set forth, the City hereby requests to continue to receive disbursements of 911 surcharge funds as a secondary PSAP; the County, which will continue to receive disbursements of 911 surcharge funds as a primary PSAP, agrees to receive disbursements of 911 surcharge funds from the State's 911 Board, on behalf of both the County and the City, for all eligible expenditures; NOW, THEREFORE, for and in consideration of the premises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: Section 1. 1. As a primary Public Safety Answering Point (PSAP), the County is eligible to receive monthly disbursements of 911 surcharge funds from the State 911 Board. 2. As a primary PSAP, the County is eligible and agrees to receive the portion of the 911 Fund that the City has been receiving. 3. As a primary PSAP, receiving 911 surcharge funds on behalf of the City, the County agrees to assume responsibility for ensuring that all expenditures of 911 Funds by the Town are made for eligible expenses as outlined in applicable laws. 4. The County agrees to remit to the City 911 surcharge funds in the anticipated amount of $28,021.95 during the 2025-2026 fiscal year as are received by the County, on behalf of the City, and to which the City is deemed eligible under this Agreement based upon the City's documented ability and commitment to use the said funds in a manner consist with applicable State law. Section 2. 1. As a secondary Public Safety Answering Point (PSAP), the City is eligible to receive disbursements from the 911 Fund only upon its compliance with the provisions of N.C.G.S.62A- 46(e) and other applicable laws; and the City agrees and commits to comply with these provisions. 2. As a secondary PSAP, the City agrees to use the amounts received under this Agreement in ar manner consistent with the provisions of N.C.G.S. 62A-46(c) and other applicable laws and to provide to the County all materials and documentation needed to certify compliance as determined necessary by the State 911 Board and the County. 3. The City agrees to be responsible for refunding and/or returning to the County any 911 surcharge funds received by the City through the County which are not used by the City in a manner consistent with the provisions of applicable law. Section3 Neither the City nor the County will be required to take any action, under the terms of this Agreement, which compromises the operational needs of the other. Section 4 Both the City and the County shall operate as independent contractors, and neither party shail be responsible for any of the acts or omissions oft the other party. The City agrees to indemnify, defend and hold the County harmless from and against any and all claims, actions, expenses (including attorney's fees), costs or liability for wrongful acts or omissions of the City in relation to this Agreement. Neither party has the authority to enter into contracts or agreements on behalf of the other party, except as necessary and agreed upon by both parties to carry out the purposes and provisions herein, Both parties declare that they have complied with all federal, state, and local laws that may be required to carry out the services to be performed under this Agreement. This Agreement shall be governed by the laws of the State of North Carolina and other applicable laws as stated therein. This Agreement shall become effective upon its full execution, In witness whereof, the parties have caused these presents to be executed by their duly authorized officers, this the 17th day of March 2025. SURRY COUNTY By: M County Manager Attest: - Chairman of the Surry County Board of Commissioners CITY OF MOUNT AIRY City Manager City Clerk RESOLUTION NUMBER 2025-048 RESOLUTION AUTHORIZING STAFF TO MAKE APPLICATION FOR PARTF GRANT (Carter Street Community Park Development) WHEREAS, City staff is requesting permission and support to make application for a Parks and Recreation Trust Fund Grant in the amount of up to $500,000 to develop a community park on the city-owned property located on Carter Street (PIN 5929-12-77-8052): and WHEREAS, the local match (dollar for dollar) will come from existing river restoration and greenway grant funds; and WHEREAS, should the grant funds be awarded, they will help address community needs including additional soccer fields, pickleball courts, a basketball court, and an accessible playground; and WHEREAS, it is staff recommendation to authorize the application of said PARTF grant: NOW, THEREFORE BE IT RESOLVED BY THE CITY OF MOUNT AIRY BOARD OF COMMISSIONERS MEETING IN OPEN SESSIONTHAT: Section 1. The Board of Commissioners does hereby authorize and support City staff to make application for a PARTF grant in the amount of up to $500,000 with local match funding coming from existing river restoration and greenway grant funds. Ifawarded, these funds will be used to develop a community park on City-owned property located on Carter Street (PIN 5929-12-77-8052). Section 2. This resolution shall become effective upon approval. Approved and adopted this the 3rd day of April, 2025. Jon Cawley, Mayor ATTEST: Melissa N. Brame, City Clerk Mount Airy Parks & Recreation Memo To: Darren Lewis, City Manager From: Peter Raymer, Parks & Recreation Director Date: 3-28-2025 Re: Parks and Recreation Trust Fund (PARTF) Grant Mount Airy Parks & Recreation is asking for permission to apply for the Parks and Recreation Trust Fund (PARTF) Grant providing a match for up to the amount of $500,000 for developing a community park on Carter Street. This will not require a match from the City of Mount Airy funds. The match will come from existing river restoration and greenway grant funds. Our proposed grant application will address community needs including additional soccer fields, pickleball courts, a basketball court and an accessible playground. Our goal for this project is to create a space to better serve the growing recreational needs of our community. 1