Salisbury, North Carolina May 20, 2025 SPECIAL MEETING PRESENT: Mayor Tamara Sheffield, Presiding; Mayor Pro Tem Harry McLaughlin, Jr.; Council Members Carlton Jackson, Jr. and David Post; City Manager Jim Greene, Jr.; City Clerk Connie B. Snyder; and City Attorney J. Graham Corriher. ABSENT: Councilmember Susan Kluttz. Salisbury City Council met in Council Chambers in City Hall located at 217 South Main Street. The meeting was called to order by Mayor Sheffield at 5:00 p.m. ADOPTION OF THE AGENDA Thereupon, Councilmember Jackson made a motion to adopt the Agenda as presented. Mayor Sheffield, Mayor Pro Tem McLaughlin and Councilmembers Jackson and Post voted AYE. (4-0) PROPOSED FY2025-2026 BUDGET DISCUSSION City Manager Jim Greene introduced the budget work session, noting that it was a follow-up to last week's budget presentation. He outlined four main topics to be covered: a budget overview, salary and benefits as a percentage of the budget, an update on federal grants, and information regarding the downtown Streetscape Project and tirefighter grant recommendations. Salisbury City Council May 20, 2025 Special Page 1 BUDGET OVERVIEW Budget Manager Tracey Keyes presented a recap of the recommended budget. She noted the total recommended budget is $117,947,113, a 1.8% decrease from last year's budget. She noted 22 new positions were recommended in the proposed budget and three Management Team positions were eliminated. She stated a reorganization created two new departments. She emphasized that revenue estimates were conservative but reasonable, and $1.9 million in Fund Balance is recommended for one-time capital needs. Ms. Keyes explained City-wide, payroll and benefits make up approximately 46% of the total budget. She referenced priority projects such as Wells Fargo event center renovations and the proposed fuel site, and she pointed out while no decision is needed for this budget year, the projects would affect the tax rate for FY2027 ifa financing package is pursued. FEDERAL GRANTS UPDATE Assistant City Manager Kelly Baker provided an update on federal grants. She presented a list of projects included in the budget totaling approximately $11 million, including Transit Formula Grants, Community Development Block Grant (CDBG) and HOME Program funds, Congestion Mitigation and Air Quality (CMAQ) projects for Brenner and Old Concord Road, the Depot Multi-modal Project, the Justice Assistant Grant, and the Stormwater Planning Grant. She noted approximately $35 million in grant funding has been awarded that is not included in the proposed budget, including grants for the Main Street Streetscape Project, the Building Resilient Infrastructure and Communities (BRIC) Grant for the Water Intake Project, Microtransit and the remaining portion of the Depot Multi-modal Project funds. She added the total of allocated and unallocated federal grant funds is over $46 million. Ms. Baker addressed concerns regarding grant uncertainties. She stated further recalls are not anticipated, but the impact would be over $24 million ifthe unallocated funds were recalled. Councilmember David Post inquired about recent court rulings regarding the current administration's ability to cancel grants. Ms. Baker explained that while some grants are being reviewed, the current allocations appear to be safe. She noted that the $22.5 million Building Resilient Infrastructure and Communities (BRIC) grant has been recalled, and she added staffis pursuing alternative funding through a state Hazard Mitigation Grant. DOWNTOWN STREETSCAPE PROJECT UPDATE Assistant City Manager Kelly Baker provided an update on the Main Street Project timeline. She noted that the project has taken longer than anticipated due to the complexity oft the project. She stated the sewer rehabilitation work is complete, and staffis moving into right-of- way certification and final plan review. She noted the initial estimates for the project are higher than the grant award, and staff anticipates bringing the plan to Council for its consideration in the summer with the goal of submitting the project for bids in the fall. Salisbury City Council May 20, 2025 - Special Page 2 FIRE DEPARTMENT STAFFING AND GRANT Budget Manager Tracey Keyes and Fire Chief Bob Parnell presented information on the Staffing For Adequate Fire and Emergency Response (SAFER) grant application for six additional firefighters. Ms. Keyes outlined the options if the grant is not received, including increasing property taxes, cutting other recommended positions, or continuing the over-hire program. Chief Parnell explained the Fire Department's scheduling and overtime structure, noting that some overtime is built into the schedule due to the nature of firefighter shifts. He addressed concerns regarding staffing levels, and he pointed out the recommended staffing is four firefighters per truck, but the Fire Department currently operates with three firefighters per truck. Councilmembers expressed concerns about firefighter fatigue, morale, and retention. They also discussed the need for additional fire stations in the future due to City growth. City Manager Jim Greene suggested if Council found the Fire Department staffing discussion helpful, similar presentations could be prepared for other departments facing staffing chalienges. BUDGET CONCERNS AND NEXT STEPS Councilmember David Post expressed concern about the overall budget decrease, noting that when accounting for inflation, it represents a significant cut in real terms. He referenced the increased cost of services, and he suggested considering a small tax increase to maintain service levels. He asked staff to provide information on what is being lost with the proposed decrease to the budget. City Manager Jim Greene stated staff will provide the requested information. Council discussed the budget timeline and agreed to hold the budget public hearing on June 3, 2025 with the possibility of an additional work session on June 10, 2025. The budget adoption is scheduled for Council's June 17, 2025 meeting. Mayor Sheffield encouraged citizens to reach out with any additional questions or concerns regarding the proposed budget. Salisbury City Council May 20, 2025 - Special Page 3 ADJOURNMENT Motion to adjourn the meeting was made by Councilmember Post. Mayor Sheffield, Mayor Pro Tem McLaughlin and Councilmembers Jackson and Post voted AYE. (4-0) The meeting was adjourned at 5:56 p.m. bmmana Tamara Sheffield,Mayor Corto BSucl Connie B. Snyder, City Clerk Salisbury City Council May 20, 2025 - Special Page 4