The regularly scheduled meeting of the Norton City Council was held Tuesday, May 20, 2025, at 5:00 p.m., in the Municipal Council Chambers with Mayor Joseph Fawbush presiding. Present: Chris Jones, Stacy Salyers, Robert Fultz, Jr., Mark Caruso and Joseph Fawbush Absent: Jeffery A. Shupe, City Manager and Clerk Also Present: Stephen McElroy, Assistant City Manager, City Engineer and Acting Clerk of Council, Treavor Calhoun, City Director of Finance, and Matthew R. Dotson, City Attorney The invocation was given by Dr. Scott Addison and was followed by the Pledge of Allegiance led by Norton Police Chief James Lane. Upon a motion by Councilman Fultz, seconded by Councilman Salyers, and passed by unanimous vote, council moved to adopt the minutes of the May 6, 2025, council meeting as presented. There was no response during the Mayor's Call for Visitors. Assistant City Manager/City Engineer Stephen McEiroy said Norton City Schools (NCS) on May 6th presented its Fiscal Year 2025-2026 Proposed Budget totaling $15,505,018, ofwhich $14,002,254 is in the Operation Fund including $3,463,706 in locally appropriated funds, a Textbook Fund in the amount of$431,003 including $30,128 in locally appropriated funds, the Early Retirement Plan Fund in the amount of $44,522, the Food Services Fund in the amount of $981,289, and the Capital Project Fund of$45,950. Mr. McElroy advised that at its May 6th meeting council authorized a public hearing to be held at the May 20th council meeting. He said the public hearing was duly advertised and a copy of the advertisement was provided in council packets on page 13, along with a summary of the proposed school budget for FY2025-2026. The assistant city manager said Norton City Schools Superintendent Dr. Gina Wohlford and Dr. Scott Addison, director of curriculum and instruction for Norton City Schools, were at the meeting to address questions from council. He said after tonight's S public hearing council would be able to take action at the June 3rd meeting to approve the FY2025-2026 Norton City Schools Budget. Mayor Fawbush asked if council had any questions or comments. There were no questions or comments from council. The mayor opened the public hearing to solicit input on the Norton City Schools Fiscal Year 2025-2026 Proposed Budget. Receiving no public comments on the proposed FY2025-2026 NCS Budget, the mayor closed the public hearing. Following inquiry from the mayor, the assistant city manager confirmed that this would be on the agenda for the June 3rd, 2025, council meeting, at which council would take action. On behalf of council, Mayor Fawbush expressed appreciation to Dr. Wohlford for the work the school system does. The assistant city manager presented a summary of the proposed City of Norton FY2025- 2026 Budget for the fiscal year of July 1, 2025, through June 30, 2026, noting that a PowerPoint presentation of the budget was available if council desired, and requested council authorization to advertise a public hearing on the proposed budget. City administration presented the proposed City of Norton FY2025-2026 Budget at the May 6th city council meeting. Mr. McElroy said the proposed FY2025-2026 budget for the General Operating Fund totals $13,931,828, which includes an increase to the Meals Tax from 7 percent to 8.5 percent, an increase to the Transient Occupancy Tax from 6 percent to 7 percent, an increase to the Cigarette Tax from $0.25 per pack to $0.40 per pack, a 25 percent increase for Commercial Garbage Collection, and no other changes to proposed taxes or fees. The proposed budget also includes $200,000 from surplus funds to balance the general operating budget. The Enterprise Fund totals $3,787,943 with a proposed $1 per 1,000-gallon base water rate increase with no changes to the Water Improvement Fee Structure or sewer rate percentages. The Social Services Operating Fund budget totals $2,035,856 which includes a local appropriation increase due to the increase in state funding. Mr. McElroy said the PowerPoint budget presentation was available ifneeded and Norton Director ofFinance Treavor Calhoun was at the meeting to address questions from council. He requested council authorization for city administration to advertise a public hearing on the city's proposed FY2025-2026 Budget to be held at the June 3rd, , 2025, city council meeting. Mayor Fawbush asked if council had any questions or comments on the proposed budget. Noting that he really hates to increase taxes and even with that still having to dig into surplus to get balanced, Vice Mayor Caruso said it is obvious to everybody that we are now in different times where the city budget is $2 million less than the school budget with two school buildings and now we have to dig into surplus to get healthy. He said it seems that something is wrong there, adding that sometimes it is necessary and he guessed that this is one oft those times. Councilman Fultz said he agreed with Vice Mayor Caruso and he did not like doing that either, but he was really glad that we did not have to do anything drastic that was a direct burden on our citizens. Mr. Fultz said he was glad we were able to find a way to put the pieces together and make it work with no more the $200,000, adding that hopefully we will be able to save the $200,000 over the course oft the year. Vice Mayor Caruso said he would like to see the city back at $2 million above the school budget. Mayor Fawbush asked if there were any additional comments from council. A brief discussion followed. The assistant city manager advised council that information found on pages 51-55 of the council packets would be published in the Coalfield Progress and if council authorizes such, the information would be sent to the Coalfield Progress tomorrow morning. Council consensus authorized city administration to advertise a public hearing on the proposed City ofNorton FY2025-2026 Budget totaling $13,931,828, as presented. The public hearing will be held at the June 3rd, 2025, council meeting. Council was also asked to consider a request to authorize a public hearing on increasing the city Meals Tax from 7 percent to 8.5 percent, increasing the city Transient Occupancy Tax from 6 percent to 7 percent, and increasing the city Cigarette Tax from $0.25 per pack to $0.40 per pack as part of the FY2025-2026 City of Norton Budget. Assistant City Manager Stephen McElroy said the reason this was separate and could not be included in the ordinance to pass with the city budget was because these rates are identified in city code. He said the rates must be changed individually by ordinance. Directing council to pages 56-61 oft the council packets, Mr. McElroy said this information includes notices of public hearing and proposed ordinances for each ofthe proposed budget increases for FY2025- 2026. He advised council that these tax increases must be advertised separately and require individual public hearings. City Attorney Matthew Dotson confirmed this was correct. Mr. McElroy said city administration recommends not making these rates effective until August 1st, 2025, because each business affected by the tax increases must be notified and this would allow the businesses to make adjustments. Mayor Fawbush asked if there were any questions of comments from council. There were no questions or comments from council. Council consensus authorized city administration to advertise three public hearings to solicit input on: 1) increasing the city Meals Tax from 7 percent to 8.5 percent; 2) increasing the city Transient Occupancy Tax from 6 percent to 7 percent; and 3) increasing the city Cigarette Tax from $0.25 per pack to $0.40 per pack as part oft the proposed FY2025-2026 City ofNorton Budget. The public hearings will be held at the June 3rd, 2025, city council meeting and will be duly advertised in the Coalfield Progress. A Resolution Recognizing the Week of May 11-17, 2024, as National Police Week in the City ofNorton was presented for council consideration. Acknowledging that National Police Week (May 11-17) had already occurred, the assistant city manager said city administration and council wanted to recognize Norton Police Department for the outstanding, job that they do. He said this annual resolution not only recognizes May 11-17, 2025, as National Police Week, but also notes that the United States Congress and the President of the United States had designated May 15th as Peace Officers Memorial Day. Mr. McElroy expressed appreciation to the police department for their hard work and shared some 2024 departmental statistics with council. The total number of calls officers responded to in 2024 was 6,758. In 2024, there were 1,106 motorist assists, 10,990 extra patrols conducted, 1,811 welfare checks, 39 public events worked or attended, 1,286 motor vehicle crashes/collisions, 468 arrests, and 1,249 shoplifting incidents. He said the police officers are extremely busy and we do appreciate everything they do on a day-to-day basis. The assistant city manager said last week officers on each shift were fed and were given a small gift as a token of our appreciation. He asked Norton Police Chief James Lane ifhe had anything he wanted to add. ChiefLane said we can train officers but the one thing we cannot do is give a person a heart for the community in which they work. He said one ofthe number one things he looks for when hiring someone is a heart for the love of the community and to go out and do community policing. The police chief said he was proud and honored to say that the officers in NPD have that and it is an honor and a privilege to work with them. ChiefLane thanked council for consideration ofthe resolution. Vice Mayor Caruso said the police officers are our ambassadors on the street meeting the public every day. He said the officers represent us and do it well. Mayor Fawbush asked if council had any other comments. There were no additional comments from council. Upon a motion by Councilman Fultz, seconded by Councilman Caruso, and passed by unanimous vote, council moved to adopt a Resolution Proclaiming the Week of May 11-17, 2025, as National Police Week in the City of Norton, as presented. (Insert) Council consideration was requested for a resolution to appropriate $1,738,550 from the Virginia Department of Housing and Community Development (VDHCD) Community Development Block Grant (CDBG) for the Southside Phase II Comprehensive Community Development Project. The resolution was included in council packets. The assistant city manager said the city was awarded a grant for $1,738,550 from the Community Development Block Grant (CDBG) program that is administered through the Virginia Department of Housing and Community Development (VDHCD) pending federal appropriation. Mr. McElroy said the city is still in the pre-contract phase for the Southside Phase II Comprehensive Community Development Project, and during the pre-contract phase there would be several things council would have to approve. The documentation submission deadline is toward the end of August with the contract hopefully being in place by October. Mr. McElroy said the resolution basically asks council to accept the funding offer and spend the funds from the grant on this project. He said the project would include substantial reconstruction, which means demolition and rebuilding a new house for three residents, renovation of seven homes, and all the water and sewer within the project area which is from Lost Creek Road to 4th Street from Kentucky Avenue to Roberts Avenue. Discussion followed about what happens if a homeowner is displaced during the project. Mayor Fawbush asked if council had any comments or concerns. There were no comments from council. Upon a motion by Councilman Jones, seconded by Councilman Salyers, and passed by unanimous roll call vote: YES - Jones, Salyers, Fultz, Caruso and Fawbush, NO - None, ABSENT - None, ABSTAIN - None, council moved to adopt a resolution to appropriate $1,738,550 from the Virginia Department ofHousing and Community Development (VDHCD) Community Development Block Grant (CDBG) for the Southside Phase II Comprehensive Community Development Project, as presented, and authorize the mayor to sign the resolution. (Insert) Also on the agenda was a resolution regarding a Residential Anti-Displacement and Relocation Assistance Plan for the Southside Phase II Comprehensive Community Development Project. Mr. McElroy advised council that this resolution was a standard Virginia Department of Housing and Community Development (VDHCD) document through the Community Development Block Grant (CDBG) program. As part of this project, three houses will receive substantial reconstruction (demolished and reconstructed) and seven houses will be rehabilitated. The assistant city manager explained that the resolution identifies the steps that are required for state approval. The assistant city manager said this was another document that was required by VDHCD and he asked for the motion made by council to include authorization for the mayor to sign the resolution. Mayor Fawbush asked ifcouncil had any questions or comments. Discussion followed about project specifics. Mr. McElroy said the project includes a little over 1,500 linear feet of waterline, 1,700 linear feet of sewer line, the demolition of two vacant, dilapidated structures, in addition to the rehabs and reconstructions. Mayor Fawbush asked if council had any additional comments. There were no additional comments from council. Upon a motion by Councilman Salyers, seconded by Councilman Caruso, and passed by unanimous vote, council moved to adopt a resolution regarding a Residential Anti-Displacement and Relocation Assistance Plan for the Southside Phase II Comprehensive Community Development Project, as presented, and authorize the mayor to execute the resolution. (Insert) Upon a motion by Councilman Fultz, seconded by Councilman Jones, and passed by unanimous vote, council moved to go into closed meeting to discuss as Per Section 2.2-3711 (A) (8) of the Code of Virginia, as amended, for consultation with legal counsel employed or retained by a public body regarding specific legal matters requiring the provision of legal advice by such counsel. Mayor Fawbush declared council in closed meeting. Upon a motion by Councilman Fultz, seconded by Councilman Caruso, and passed by unanimous vote, council moved to go back into open meeting. Mayor Fawbush declared council back in open meeting. Mr. McElroy polled each member of council as to the Certification ofClosed Meeting with each answer yes. He then read A Resolution ofthe Certification of Closed Meeting. Upon a motion by Councilman Caruso, seconded by Councilman Jones, and passed by unanimous vote, council moved to adopt A Resolution of the Certification of Closed Meeting. (Insert) At this time, Mayor Fawbush entertained a motion to allow city administration to work with the Virginia Economic Development Partnership (VEDP) to finalize the Commonwealth's Development Opportunity Fund Performance Agreement and allow the mayor or city manager to execute the agreement once the agreement is completed. Upon a motion by Councilman Salyers, seconded by Councilman Fultz, and passed by unanimous vote, council moved to allow city administration to work with the Virginia Economic Development Partnership (VEDP) to finalize the Commonwealth S Development Opportunity Fund Performance Agreement and allow the mayor or city manager to execute the agreement once the agreement is completed. In comments from the assistant city manager/city engineer: Mr. McElroy said Flag Rock officially opened Friday, May gth, 9 for the 2025 season after water leaks were repaired and disinfection oft the water system was completed. The splash pad officially opened Wednesday, May 14th, for the 2025 season. The assistant city manager announced the groundbreaking for the tennis court project will be Tuesday, June 3, at 11:30 a.m., immediately following the preconstruction conference with the contractor. Mr. McElroy discussed city administration'* S plans for notifying businesses by letter about the proposed Meals, Transient Occupancy, and Cigarette Stamp tax rate increases. Updating council about the surplus auction held Saturday, May 17th, Mr. McElroy said all items the city had at the auction sold and buyers have until the afternoon of Friday, May 23rd, to remove all items from city property. Council was provided with the latest Retail Sales Tax information for review. Mr. McElroy said the annual Fit Farmer 12K Trail Run was held Saturday, May 17th, with 44 runners participating. Council was provided with a tentative schedule for this year's Best Friend Festival set for June 1-7th. Council was also given an invitation to the Forest Botanicals Sculpture Unveiling to be held June 7h, which is the last day of the Best Friend Festival. He said several things are planned that day from 11 a.m. to 5:30 p.m. at the High Knob Destination Center. Mr. McElroy reminded council that city offices will be closed Monday, May 26th, > 2025, in observance of the Memorial Day holiday. In comments by the city attorney: City Attorney Matthew Dotson briefed council on the status of one of the city's delinquent real estate tax cases. He said he would be seeking a decree from the court to permit the city to sell the property now and probably within a month to 45 days the city will be having an auction selling between 10 and 12 properties. The auction will take place in Municipal Council Chambers. Following discussion about whether any of the delinquent tax sale properties were landlocked, the city attorney advised that at least three ofthe properties were landlocked and he provided legal counsel pertaining to the land locked properties. The following comments were made by council members: Councilman Jones said there was a delay in clearing High Knob Recreation Area which has in turn delayed construction ofthe handicapped accessible platform until after the High Knob Music Festival or most likely after July 4th and the U.S. Forest Service': s reopening of the High Knob Recreation Area. Councilman Fultz said John I. Burton High School had a very nice graduation Friday, which was held inside due to the weather. He said the graduation ceremony was available for viewing on the high school's Facebook page. Mr. Fultz thanked Mr. McElroy for the update on the groundbreaking for the tennis courts, noting that this was good news. Councilman Fultz said it was nice to see the splash pad open on Wednesday, and he inquired about the timeline for the restrooms and the fence. The assistant city manager said hopefully we will get started very soon and the fence had been ordered but the delivery date had not been confirmed. Noting that he was at the High Knob Destination Center Sunday with the John I. Burton High School Hall ofl Fame Committee, Councilman Fultz said he could not go into the destination center without being stricken by the fact that it is an extremely nice facility. He said he was proud we have the destination center and he was looking forward to seeing the sculpture, and other developments in that area, as well as the sidewalk that is going to be built. Councilman Fultz shared his interpretation oft the Sales Tax revenue. Noting that it is great that we are getting some new tennis courts in the city, which will be good for Norton City Schools and is something we are proud to do for them, Vice Mayor Caruso inquired about the second phase of that, which is the pickleball courts at the location where the tennis courts are currently located. He said it is not too early to begin planning for the pickleball courts sO there is no delay. Discussing maintenance in the city, the vice mayor reported that on the north side of Kentucky Avenue in two locations the weeds and grass have grown past the guttering and started into the parking area along the street. He asked if city crews could clear the overgrowth. Mentioning that he had the pleasure of attending the scholarship presentation at the high school, Mayor Fawbush spoke briefly about the scholarship awards and a brief discussion followed. The mayor congratulated Councilman Robert Fultz, Jr., for being named Teacher of the Year. Upon a motion by Councilman Caruso, seconded by Councilman Salyers, and passed by unanimous vote, council moved to adjourn the council meeting. CITY OF NORTON, VIRGINIA aerk 4 Joseph Fawbush, Mayor ATTEST: Stephen McElroy, Acting Clerk of Council