MINUTES OF RETREAT OF THE CITY COUNCIL - CITY OF SANFORD SANFORD, NORTH CAROLINA The City Council met at the Raleigh Executive Jetport, located at 700 Rod Sullivan Road, Sanford, on Thursday, March 13, 2025, at 9:00 a.m., to hold the first day ofits two-day annual retreat. The following people were present: Mayor Rebecca Wyhof Salmon Mayor Pro Tem Mark Akinosho Council Member Byron Buckels Council Member Jean Dabbs (10:36 AM) Council Member Walter Ferguson Council Member Linda Rhodes Council Member James Williams City Manager Hal Hegwer City Attorney Susan Patterson Assistant to the City Manager Holly Marosites Assistant City Manager Vic Czar Assistant City Manager Beth Kelly City Clerk Bonnie Davis Deputy City Clerk Vicki Cannady Absent: Council Member Charles Taylor Call to Order Mayor Salmon called the meeting to order and welcomed everyone to the retreat. Financial Overview (Exhibits A and B) Assistant City Manager Beth Kelly presented a slide presentation and financial review of the City's General Fund from fiscal year 1998-1999 through fiscal year 2024-2025, which included a breakdown ofrevenue sources based on the approved 2024-2025 budget. The presentation included a tax history of Ad Valorem tax revenue from fiscal year 2015 through the end of 2024, which was $24,564, 544 (51 percent). The overview included sales tax revenue for Lee County and the City of Sanford 2015 and 2019, tied to the sales tax distribution being changed by Lee County. The available Fund Balance as of June 30, 2024 was $31,331,813 and minus the restrictions of several funds, the adjusted fund balance was $21,113,603. Ms. Kelly reviewed the current and estimated expenditures for Fiscal Year 2024-2025. Exhibit B is a letter sent to the North Carolina General Assembly by the North Carolina Association of County Commissioners, regarding opposition to the many property tax exemption bills proposed in the General Assembly. Break A brief break was taken at 10:07 a.m. and the meeting resumed at 10:23 A.M. Implications of the Changing Development Environment (Exhibit C) Assistant City Manager Vic Czar and Community Development Director Marshall Downey presented a power point presentation regarding changing development and the impact the growth created from annexation has had on city services. Mr. Czar explained that the history of growth in Sanford was based on local builders developing a few lots each year, which did not create a noticeable impact on the delivery ofcity services and operations, on a year-to-year basis. Sanford's growth model began to change in 2010, and a conscience effort was made to market our community as welcoming new residential housing, which attracted larger, traditional tract builders. These efforts have resulted in a tremendous increase in residential developments through annexing parcels and rezoning approvals. Our current land use plan was adopted in 2018, under the guidance of our Joint Planning Commission, along with the assistance of a Planning Consultant (Benchmark). Staff collected data, analyzed the City Council Retreat Day One March 13, 2025 information, and prepared the drafts for review. The Plan SanLee Long Range Plan was a guide when meeting with the development community and it served this role very well as our growth demands were light to moderate; however, over the past five years, our requests for development approvals have significantly increased and the current Plan SanLee Land Use Plan provides less guidance on the nuances of higher demands for city expansion because there is a greater gap or hinderance for the Planning Board and City Council in making decisions regarding the statutorily required vote on consistency of our land use plan. Reliance solely on the land use plan to determine approval or denial of a development request is no longer as reliable as it was five years ago, because we no longer have the luxury ofslower growth to assist us in filtering through these land use decisions. Mr. Czar reviewed the current development approval process and suggested that annexation is the step in the decision- making process where more information should be provided to City Council to assist with the pros and cons of requested annexations. Given the growth trend in Sanford over the past five years, staff is concerned that our current review and approval process is not adequate for the changing dynamic on demands for city expansion and related city services. Sanford currently has 33.35 square miles within the city limits. Based on the current non-contiguous boundary, the projected growth will increase 64 percent (51.53 square miles) ifthe unincorporated parcels are annexed that are currently located within the areas outlined between currently annexed non-contiguous areas and the current contiguous city limits. Assuming a moderate density of3.5 units per acre, this would yield an estimated population of 105,880 person. Annexations of individual development projects have a cumulative effect on long- term provision of City services; therefore, staff suggests that our current development review and approval process is lacking in terms of the depth of information presented to City Council. It is important to explore City services, such as: land use balance/tax-base goals; public safety; parks and recreation; street maintenance; transportation network/land use coordination; solid waste; water distribution and treatment; wastewater collection and treatment; emvirommemalsomwater; and city facilities. As next steps, staff is suggesting to collect and work with various tools to create a data map of a new "urban growth" area with a five- to ten-year window for addressing immediate growth and work to create more comprehensive annexation reports to provide greater insight into the expected outcomes of potential growth. The new urban growth boundary would supplement the larger, 30-Year Land Use Plan, which would refine Council's vision of where immediate development should occur and discourage haphazard developer-driven projects, which leads to greater costs to extend/maintain city services. Lunch A lunch break was taken at 11:36 a.m. and the meeting resumed at 12:15 p.m. Implications of the Changing Development Environment = continued Community Development Director Marshall Downey continued the review of the changing development environment. He noted that considering the annexation footprint, if the areas are built- out, whether industrial or residential, at some point, the city will have to provide city services and additional fire stations will be needed to maintain the current level of service for these annexed areas. Fire protection is just one service; it will affect leaf and limb, as well as bulk trash pickup. Police are different because they are on patrol as opposed to fire, where a fire station is required. Depending on the location of the development, additional fire, police, along with other city services, will be needed; therefore, we need to keep this in consideration when making decisions. This new urban growth boundary would supplement the larger, 30-Year Land Use Plan. Mr. Downey noted that the Joint Planning Commission incorporates input from the development community into their land use development process. This input is valuable; however, the decision ultimately rests with City Council. Mr. Downey reviewed the maps included within the presentation, depicting annexation information. A briefb break was taken; the meeting resumed at 1:19 p.m. 2 City Council Retreat Day One March 13, 2025 Mr. Downey noted that given the trend data for the past five years of development activity, staff is concerned that our current review and approval process is not adequate given the changing dynamic on the demands for city expansion and related city services. Staff would like to take a deeper dive into multiple city services and explore desired outcomes and related metrics. Staff feels they can do better in supplying data to Council for assistance in their decision-making process. Airport Tour The meeting was recessed at approximately 2:06 p.m. at which time Council and other attendees toured the airport facilities. The meeting resumed at 2:30 P.M. Updates from Liaisons to Boards, Commissions, and Committees and Discussion (Exhibit D) ADA - There was no meeting. Airport Authority = There was no additional information shared. Appearance Commission - Council Member Dabbs reported that she had a request to gain information from representative John Sauls and Senator Burgin regarding the status of the Railroad Mural which they are aware of. The bee sculpture was discussed and the bees have been ordered. Board of A4usment/Housing Board of Appeals - There is no liaison to this board. Central Pines Regional Council (CPRC) - Mayor Salmon reported that Central Pines Regional Council is concerned about the freeze on funding because a huge amount of their work is done through Federal Grants and they are adjusting accordingly. The future of some programs is uncertain and the freeze could result in staff reduction. CPRC offers municipalities service in grant administration. Assistant City Manager Beth Kelly noted that the City of Sanford pays CPRC $20,000 for an overall contract to provide assistance in finding grants and once we get the grant, we pay a separate fee for administration. Mayor Salmon mentioned that she also serves on the Foreign Trade Zone Board and they are very concerned about the implications of tariffs on North Carolina businesses. Downtown Sanford, Inc. (DSI) = Council Member Rhodes reported that StreetFest was ended with fireworks last year; however, they have decided not to have fireworks this year and the festival would conclude at 4:00 p.m. DSI has been contacted by several business owners who are waiting to see what direction DSI is headed before they make any type of business decisions. Entertainment is going to be a huge economic factor in downtown; there are some restaurants that have band performances. DSI has discussed partnering with SAGA and the City of Sanford in doing a RISE retail incubator program in the downtown area; the key is to start small and build on a solid foundation. It takes people to do these things and DSI is requesting in the budget proposal, to make the existing part- time position a full-time position. There is a need to focus attention on the homelessness issue in Jonesboro. DSI received notice last week that they have received full accreditation from Main Street USA as a Main Street USA City. Fire Committee Council Member Dabbs explained that this committee met and she reported that the fund is healthy. Friends of Sanford - Mayor Salmon reported that this committee has not met since the last update. The re-appointment of the at large position will be an item on the next City Council Meeting agenda. 3 City Council Retreat Day One March 13, 2025 HPC - Council Member Dabbs reported that there were no major decisions before the HPC at the last meeting she was able to attend. They discussed the building where the Reach Out Pregnancy Center is relocated. There have not been any major discussions, other than the issue with David Heimbeckers business. Joint Environmental Affairs - This Board has not met. Joint Interlocal Committee - This Committee is scheduled to meet in April. Joint Planning Commission = There was not a quorum for the last scheduled meeting. Planning Board - There is no liaison for this board. S3 Housing Connect - Council Member Rhodes noted that the Committee meets once per month at the Mann Center. They did a Point In Time Count (PITC) on January 29, 2025. The number of un-housed individuals has increased from 475 to 529 people in 2025. It was the highest number of people within the region where Sanford is located; these are families who do not have shelter and their children are in the school system. S3 has different action groups that discuss things that can be done to help these individuals; donations can be made to the local homeless shelters, such as Bread Basket and Bread of Life. This is a very collaborative group and together with S3, they have birthed other organizations, such as Sisters in Action, etc. ABC Board - Mayor Pro Tem Akinosho reported that the ABC Board is functioning good. The scholarship program is available for high-school students preparing for college; April 13 is the deadline. Sanford Affordable Housing Development Corporation - Council Member Buckels reported that they have 41 rooms at the Wilrik Building; several units are available and several more are being renovated. One-bedroom apartment rents for $600; two-bedroom apartment rents for $700 per month. Most tenants are on a fixed income. Tax credits for the Wilrik will be expiring soon and the space they are providing now may not be available later and the city must consider options to be more proactive in affordable housing. Council Member Buckels mentioned ARPA funds and hopes some of the funds can be used for affordable housing. Sanford. Area Growth Alliance Mayor Salmon reported that SAGA is still receiving inquiries and they are hoping to see some of them come to fruition. In lieu of participating in the Triangle Business Journal Corridors of Opportunity, SAGA is going to have a local economic development summit, focusing on the Sanford community. They are working on upgrading the quality-of-life study, focusing on retail market, sharing information on the housing study by Carolina Core and have some type of panel oflocal community leaders (schools, Lee County, City of Sanford, CCCC) to talk about how they interact with each together. Sanford Housing Authority - Council Member Ferguson mentioned that Sanford Housing Authority has ai new Director, Dr. Michael Threat. Since Dr. Threat's employment, he has terminated the CFO and the head ofHuman Resources. They are reviewing the Steward Manor to determine how people are still accessing the fourth floor; they are monitoring the situation. They voted to change the 4 City Council Retreat Day One - March 13, 2025 name of The Sanford Housing Authority to Central Carolina Housing Solutions because they own property in Harnett County. They have obtained a third-party to handle property management (Royal Property Management). They changed the name of 226 Linden Avenue Apartments to Hope White Village because Hope White had been on the board for ten years. Council discussed ifthis was legal for them to change the name. City Attorney Patterson noted that she is reviewing this issue, but she has not completed her analysis. Mayor Salmon noted that Sanford Housing Authority makes its own decisions; the City Council only has authority to appoint members to serve on the board. Council Members will address this situation after Attorney Patterson completes her review regarding changing the Sanford Housing Authority and Linden Avenue Apartment names. Parks Commission Commission Member Walter Ferguson reported that the Parks Commission changed their meetings to quarterly and they have not had a current meeting. TDA - Mayor Pro Tem Akinosho reported that the Tourism Development Authority is in the process of developing a strategic plan and when completed they will present it to City Council. The number of shoppers in the area is 20,500, which is a four percent annual increase. The amount oft total sales in this area is $3.3 billion; visitor spending is $9 million; sales tax has doubled twice the state and federal amounts. The TDA is doing an excellent job in promoting Sanford; they are producing a healthy environment. Other Ideas for Future Workshops Council Member Buckels mentioned the possibility of using "tiny homes" as a means for affordable housing. He mentioned the unsightly appearance of bridges (the railroad overpass) on Horner Boulevard entering Downtown Sanford. Council Member Rhodes noted in conjunction with DSI, she would like to see a cultural arts center (like the Mann Center), making it a similar atmosphere to Downtown Cary. She reiterated the need to initiate the revitalization of. Jonesboro. Council Member Ferguson agrees with Council Member Rhodes that Jonesboro is in need of revitalization; he has received comments from the general-public regarding the concern that Jonesboro is turning into a community of vape stores and Dollar Generals. He mentioned that he had received calls concerning TriRiver convenience fees. City Manager Hal Hegwer commented that it is time the city started charging these convenience fees. There are other options the public can pay their water bills, as opposed to using debit card. Council Member Dabbs commented that she has been approached about our local parks and greenways not having interactive exercise areas along the walking trails; the instructions in some of the parks have faded and they are unreadable, and there are no means to accommodate people oflarger stature. She noted that perhaps this could be included in the proposed Sanford Central Green, etc. Mayor Salmon noted that she would pass this information on to Lee County SO that they can refresh their instructions in their parks. Council Member Dabbs mentioned that she would like to have more of Jonesboro included in the Public Arts Program. Mayor Pro Tem Akinosho commented that since TriRiver Water is a regional utility source, he sees the need of installing tracking devices in TriRiver Water vehicles, as a means of promoting organization and efficiency. Mr. Akinosho also noted that the local parks are very busy and we need to make preparation to have another neighborhood park; our parks need to be evenly distributed. 5 City Council Retreat Day One March 13, 2025 Mayor Salmon commented that we may be entering into a time in our community where community needs are not going to be met due to shifts in funding; this will create a stress on the City's effort to achieve the success we want to have for every family. Strategic Framework (Exhibit E) Assistant to the City Manager Holly Marosites reviewed the Strategic Framework Report, which included five goals: (1) Economic Prosperity for all; (2) Preserving and Creating Affordable Housing; (3) Vibrant Downtowns (Sanford and Jonesboro); (4) Planning and Infrastructure for Managed Growth; and, (5) Engagement. Ms. Marosites explained that within the framework there are different objectives and initiatives and she reviewed the activities that were accomplished in meeting these goals as described within the handouts. Council Member Buckels asked Ms. Marosites ifSAGA had a demographic breakdown of the participants in the Lee County Promise Program, and she replied that she would contact SAGA to obtain that information. Legislative Updates Mayor Salmon welcomed State Representative John Sauls and State Senator Jim Burgin who provided legislative updates. Representative Sauls explained that any funds that could have been awarded to his district was consumed by the disastrous condition ofthe western part ofNorth Carolina, due to the recent flooding. State Senator Burgin suggested that the City Council supply him with a list of priority items that they would like to be considered and should any funds become available, he will submit it for review. Mayor Salmon asked Council to consider items they would like to be included in this list and submit them to her as soon as possible. Mayor Salmon recessed the meeting at approximately 7:00 p.m. ALL EXHBITS CONTAINED HEREIN ARE HEREBY INCORPORATED BY REFERENCE AND MADE A PART OF THESE MINUTES. Respectfully Submitted, ehant A / REBECCA WITOF SALMON, MAYOR ATTEST: ame - 3 Bupant BONMIE BRYANT, CITY CLERK 6