Salisbury, North Carolina January 28-29, 2025 SPECIAL MEETING - GOAL SETTING RETREAT PRESENT: Mayor Pro Tem Tamara Sheffield, Presiding: Council Members Carlton Jackson. Jr., Harry McLaughlin and David Post; City Manager Jim Greene. Jr., City Clerk Connie B. Snyder; and City Attorney J. Graham Corriher. ABSENT: None. Salisbury City Council met in Council Chambers in City Hall located at 217 South Main Street. The meeting was called to order by Mayor Pro Tem Sheffield at 8:30 a.m. CALLTO ORDER. AND OPENING REMARKS Mayor Pro Tem Tamara Sheffield convened the Annual Goal Setting Retreat for Salisbury City Council. She thanked everyone who worked to make the Retreat a success. She recognized Retreat Facilitator Jeff Emory from the North Carolina Department ofCommerce. She stated it is important to focus on the Forward 2040 Comprehensive Plan and the Strategic Plan to chart the City's future. City Manager Jim Greene stated the theme of the Retreat is "Turning Vision to Reality: Creating the Framework for 2025" with a focus on growth and growth management. He stated the Retreat is the first step in the budget process and it provides Council an opportunity to share its thoughts and ideas. He pointed out the Strategic Plan includes a multi-year focus that also guides the budget. He thanked Assistant City Manager Kelly Baker, Administrative Specialist Clarie Karriker, Senior Administrative Specialist Atalie Bare and Senior Administrative Specialist Macy Emory for their work to make the Retreat a suçcess. Mr. Emory stated his goal is to make sure Council and staff have direction for the coming year's S budget. Salisbury City Council January 28-29. 2025 Retreat Page 1 PICTURE TOMORROW : SETTING A VISION Assistant City Manager Kelly Baker presented Council with vision boards and asked them to create a vision to share with Council. staff and the audience. She indicated it is important for Councilmembers to have an individual vision that can be used to create a combined vision for the City. Councilmember Post stated the vision needs to focus on public safety. He pointed out housing and schools are driving factors regarding what takes place in a city and help to create a community where people want to live, work and play. He indicated he would like for Council to be more engaged in the school system and to look for ways to address poverty. Councilmember Jackson indicated the vision should focus on safety, citizen input and growth. He added it is important for the City to have youth activities. affordable housing and to promote a safe community. He noted the City must work to create infrastructure that will attract businesses and jobs to the community. Councilmember McLaughlin noted the focus should be to create a hub that brings the community together. He stated it is important to promote safety and small businesses that are unique to the City and to attract innovative businesses. He indicated partnerships are needed SO the City can be a trail blazer in the future. Mayor Pro Tem Sheffield stated the future will always be a work zone and one ofher top priorities is to be an employer of choice which is about recruitment, retention and rewarding. She added citizen engagement is critical to the City's success. She stated public safety is a priority, and she pointed out the City's vision includes critical projects such as the railway to western North Carolina. She added it is important to invest in the youth and to create a Salisbury for all. Retreat Facilitator Jeff Emory noted the keywords he heard were safety, citizen input, growth, housing, schools, citizen engagement, trail blazers, a happy place, job opportunities and having people who want to work and live in the City. He pointed out those key words will set the course for the Retreat. 2024 IN REVIEW: STRATEGIC PLAN PROCESS Assistant City Manager Kelly Baker explained the year in review is typically led by the mayor but will be led by various members of staff. She stated the City's Strategic Plan has been in place for approximately 10 months which will be a focus point for the year in review. Budget Manager Tracey Keys noted this is the first Strategic Plan for the City and it includes: A three to five multi-year focus Sets Council priorities that are communicated to the public Provides direction and shared vision/values Salisbury City Council January 28-29, 2025 Retreat Page 2 Keeps the organization aligned and focused Provides a foundation for staffs S work and budget development Ms. Keyes reviewed the strategic planning timeline. and she noted the plan consists of six key focus areas: Healthy, Safe and Engaged Neighborhoods Organizational Excellence Economic and Workforce Development Sustainable Infrastructure Public Safety Cultural Amenities Transportation Director Rodney Harrison and Downtown Development Director Sada Troutman provided an overview of Economic and Workforce Development which fosters opportunities for economic growth and prosperity for all by retaining, cultivating. and attracting a strong and diverse workforce while leveraging local assets and partnerships to promote a resilient local economy that supports business growth and development: Extended the Downtown Parking Pilot Program by an additional year Officially designated the Downtown Municipal Service District as a community and economic development project area Revised the Downtown Revitalization Grant Program Approved a pilot Small Business Assistance Program in partnership with the Rowan County Chamber ofCommerce Awarded a Level 3 incentive grant to RP Salisbury Partners, LLC, supporting its estimated $3.14 million investment Modified the City's Investment Grant Program to align tier percentages with Rowan County's investment policy, based on projected investment levels Advanced the Microtransit pilot program by securing approval from the North Carolina Department of Transportation (NCDOT) Integrated Mobility Division (IMD) and releasing a Request for Proposals for vendor implementation Approved key documents for the Empire Project, including the authorization of Phase I and agreements defining milestones for Phases II and III Ms. Troutman stated the City in partnership with the Rowan County Chamber of Commerce awarded six $5,000 grants to support local businesses. She pointed out the Downtown Revitalization Grant Program was modified to increase the minimum amount of investment required and to amend other elements of the project. She added the City's Investment Grant Program was revised to adjust the tax benefit percentage. Mr. Harrison provided an update of Microtransit. He noted at its 2022 Retreat Council adopted a statement to implement a Microtransit Pilot Project to determine the viability ofalternate transportation. He pointed out advancing the Microtransit Pilot Project was included in the City's Salisbury City Council January 28-29. 2025 Retreat Page 3 Strategic Plan. He reviewed the project timeline, and he noted the service is anticipated to begin in July and will replace Route 3 and Americans with Disabilities Act (ADA) paratransit services. Administrative Specialist Claire Karriker and Human Relations Specialist Michael Brooks presented Organizational Excellence which commits to innovative employee development and retention initiatives, fiscal responsibility, increased communication, and partnerships to support employees as they deliver exceptional and equitable service to residents: Adopted the City's first Strategic Plan which creates a oundation for long-term goals and direction Updated the City's core values, mission and vision Approved a 1.5% Cost ofLiving Adjustment (COLA) and a 4.5% range adjustment, alongside a continued longevity bonus and an average 3% merit raise for employees Reviewed employee benefits and maintained a no-cost health insurance option Completed training sessions focused on diversity and bias awareness Organized the Health and Wellness Olympics to foster teamwork, highlight wellness initiatives, and support Rowan Helping Ministries Implemented a Paid Parental Leave policy granting four weeks of paid leave to eligible employees Appointed Carlton A. Jackson, Jr. to fill a Council vacancy Started a pilot Employee Mentorship Program Continued the Passport Program Started Employee Interest Groups Continued the Employee Advisory Committee Soft- launched an employee newsletter Hired a consultant to review recruiting and promotional policies and organizational employee data for fairness and equity Implemented Management Essentials training for new supervisors and rising leaders Created a handbook for Board and Commission members Urban Design Planner Alyssa Nelson and Traffic Engineer Victoria Trexler reviewed Cultural Amenities which support high-quality parks, open spaces, greenways, and community spaces that provide a wide range of diverse amenities and programs to support healthy lifestyles for all ages youth to retirees = and celebrate the rich cultural diversity of our community: Approved the Arch of Freedom installation at Patriot's Flag Concourse at City Park in partnership with the Salisbury Rotary Club Collaborated with Rufty-Holmes Senior Center to develop a Master Plan for a multi- generational community center and pool Completed a new Paint the Pavement project near Lee and Kerr Streets Contracted with an architect to remodel the Parks and Recreation Event Center located at 130 South Main Street Started the planning process for additional murals Coordinated 16 events at Bell Tower Green including Juneteenth, Pride and Hispanic festivals Salisbury City Council January 28-29, 2025 Retreat Page 4 Hosted the 16th annual Sculpture Show and held the first public reception to meet the artists Transportation Director Wendy Brindle and Assistant Salisbury-Rowan Utilities (SRU) Director Jim Amaral reviewed Sustainable Infrastructure - Become an environmentally resilient community that thrives on innovative. sustainable practices through thoughtful infrastructure planning and continued investment in critical utility and capital assets: Received a $400.000 pre-construction planning grant for the SRU Wastewater Master Plan Approved the Local Water Supply Plan Secured a $400.000 grant through the Local Assistance for Stormwater Infrastructure Investments Program Authorized staff to proceed with the Main Street Project design Approved three voluntary annexations totaling 67.35 acres Initiated the Downtown Sewer Rehabilitation Project Approved a municipal agreement with the North Carolina Department of Transportation (NCDOT) for Congestion and Air Quality funds to support the Multi- Modal Depot Project's sustainable infrastructure Approved the 2025 Downtown Salisbury Master Plan Partnered with the Tourism Development Authority to install a brick sidewalk in the Railwalk District Implemented Office 365 Received two all-electric, ADA-accessible 25-foot buses, purchased through the Volkswagen Settlement Program Planning and Neighborhoods Director Hannah Jacobson and Homeless Liaison Dennis Rivers presented Healthy and Safe Neighborhoods - Engage with our community to build partnerships that promote and foster thriving neighborhoods where people feel safe and included, have access to adequate affordable housing, and are provided opportunities and amenities to enjoy a high quality of life. Partnered with Shelter Ministries of Rowan County and First Horizons Community to construct 10 units of permanent supportive housing using HOME American Rescue Plan Act (ARPA) funds Launched the South Main Street small area plan with a walking assessment Continued progress on the 10-Year Housing Strategy Plan Added an additional homeless liaison position in the Police Department Continued work with the Development Finance Institute to issue a Request for Proposals for development ofthe former Kesler Mill site Applied for a Reconnecting Communities grant to study the West Innes Corridor Piloted a Neighborhood Beautification Grant Program Hosted the 14th annual Blockwork project in the 1100 and 1200 blocks of West Horah Street Salisbury City Council January 28-29, 2025 Retreat Page 5 Police Major Corey Brooks and Fire Division Chief Shawn McBride presented Public Safety - Ensure a safe Salisbury by partnering with our neighborhoods. businesses, Rowan County, and non-profit organizations to provide innovative. efficient, equitable, and responsive cross- departmental public safety services: Revised City Code regarding panhandling to enhance public safety in rights-of-way and to install educational signage Continued construction of Fire Station 3 Purchased ballistic vests to address public safety Contracted with United Way to administer and manage $222,200 in non-profit grant funds through the Byrne Criminal Justice Initiative to support the West End community Adopted an Ordinance defining e-scooters and prohibiting their use on public property within the Municipal Service District Continued Cultivating Community Conversations sessions Improved the firefighter physical and enhanced cancer screening Chief McBride noted the City received a $10 million public safety grant and funds from the grant was used to purchase ballistic vests to enhance police officers and firefighters' safety. He added 100 vests were purchased, 80 for the Police Department and 20 for the Fire Department at a cost of $320,935. Major Brooks noted in 2024, the Police Department hosted a series of "Cultivating Community Conversations" sessions, engaging with diverse groups such as seniors, Hispanic residents. youth, and LGBTQ+ communities. He stated the sessions fostered meaningful connections and strengthened community engagement by building trust, encouraging inclusion, strengthening relationships and enhancing awareness. Ms. Baker noted in FY2024-2025 the City received $11,437,772.20 in grant funding, with the majority coming from the $10 million public safety grant. She stated staff will continue to look for grant funding opportunities. She asked Council ifit had any modifications to the Strategic Plan. She stated staff recommends retaining the current Strategic Plan and deferring revisions until 2026 Mayor Pro Tem Sheffield thanked staff for its presentation. Retreat Facilitator Jeff Emory pointed out the City has made great progress in the last year. FINANCIAL REVIEW: STRENGTHING THE FRAMEWORK Finance Director Wade Furches and Assistant Finance Director Mark Drye provided a financial review of FY2024 and goals for FY2025. Mr. Furches noted Fund Balance as of June 30, 2024 was $39,217,129. Mr. Drye stated in FY2023 the available Fund Balance was $28,581,023 and in FY2024 the available Fund Balance is $31,808,384 or 62.7% of expenditures. He reviewed the items in the Fund Balance that are not expendable, and he pointed out the City has $20 million in Fund Balance in excess of working capital and the Fund Balance Policy. Salisbury City Council January 28-29, 2025 - Retreat Page 6 Mr. Drye pointed out Council established a 25% working capital Fund Balance Policy which is a minimum threshold of $11,703,981. He reviewed the Fund Balance that would be available if$1.5 million was added to Fund Balance at the end of the fiscal year: Remaining Fund Balance in excess of Working Capital/Fund Balance Policy $ 20,104,403 Add: Surplus in FY25 (estimate) 1,500,000 Less: City's portion of Main Street Streetscape (1,856,689) Current amount of Fund Balance Appropriated: Carry forward of allocated funds for Parks and Recreation ($1.2 million) (580,490) Carry forward of allocated funds for Parks Wells Fargo building/Civic Center ($1 million) (797,137) City's portion of various grant-funded projects (1,681,251) Downtown Revitalization Incentive grants (523,525) City Hall and City Office Building projects (569,072) Approved in FY24 and FY25 budget - various one time needs (1,604,724) Spendable Fund Balance- estimated 48% GF expenditures $ 13,991,515 Less Spendable Fund Balance at 2024 retreat 10,214,068 Increase in Spendable Fund Balance - FY24 3,777,447 Mr. Drye noted future projects that will require Fund Balance: Construction of a fuel site - $1.7 million The Depot - estimated $2 million to $5 million short fall Empire Project Downtown Streetscapes approximately $1.8 million Wells Fargo building/event center Multi-generational and Aquatics Center Kesler Mill Project Property for future growth (Transportation, Fire Stations, etc.) Police Department expansion Police Department firing range Downtown parking Emergencies, for a rainy-day fund Mr. Drye explained there are three major enterprise funds: Salisbury-Rowan Utilities (SRU), Stormwater and Transit. He pointed out SRU has an unrestricted Fund Balance of $43 million, or 145% of its expenditure. He indicated $6 million of the SRU Fund Balance was Salisbury City Council January 28-29, 2025 - Retreat Page 7 allocated for projects in the FY2025 budget. He stated SRU has a $170 million Capital Improvement Plan (CIP). Mr. Drye stated Stormwater has an unrestricted Fund Balance of$3.3 million, or 152% of expenditures. and a $15.5 million CIP. He added Transit has an unrestricted Fund Balance of $300,000, or 17% ofexpenditures. He pointed out the Transit Fund is comprised of federal grant funds. City Manager Jim Greene indiçated $40 million in Fund Balance is outstanding for a city the size of Salisbury. He pointed out approximately $13 million is available, and he noted it is a priority of Council to build the Fund Balance. He commented the project list is impressive, and he cautioned completing the projects will be expensive. He added the City is in great financial shape and it has reserves in the General Fund, SRU and Stormwater funds. Mr. Furches reviewed annual performance indicators. He referenced the debt service ratio, and he pointed out the City spends 4% of its General Fund expenditures on debt service which is below the 10% benchmark. He noted the City has a 62.7% available Fund Balance as a percent of expenditures and the benchmark for peers is 67.5%. He indicated the City is approaching the peer average and well above its minimum policy of25%. He pointed out the City's debt as a percentage of assessed value is low and there is capacity to issue debt in the General Fund. Mr. Furches referenced the capital assets condition ration of. 40, and he pointed out the City's fixed assets are more than half-depreciated at approximately 60%. He explained the City needs to invest in capital assets due to aging infrastructure in the General Fund and the Water and Sewer Fund. Mr. Furches then referenced the SRU debt service ratio of0.15, and he pointed out SRU has debt, but it is lower than the average ofits peers. He noted the capital assets condition ratio for SRU is .478, and the peer benchmark is 0.62. He indicated over 50% ofthe assets have been depreciated and the infrastructure is aging. He pointed out upcoming projects will increase the ratio. He explained the Local Government Commission would like the number to be above .50, and SRU is at .47. Mr. Furches explained the recent property tax increase generated approximately $2.1 million in additional tax revenue that to be used for staffing, infrastructure. technology, compensation, health insurance and employee benefits. He reviewed property taxes. excluding vehicles: City budgeted $26,2 million for current year's tax collections Based on valuations by Rowan County Currently projecting to receive $27 million which is $764.326 in additional tax revenue for FY2025 $4.185.465.072 in valuation. budgeted $4,072,542,435. $112.922.637 additional valuation or 2.8% 85.94% collected through December verses 83.43% in FY2024 Salisbury City Council January 28-29, 2025 - Retreat Page 8 Mr. Furches presented potential uses for the extra property taxes: Project Amount Comment Fire Station 5 window replacement $ 64,000 Requested in FY25 budget. Cut to balance budget. Replace wooden cemetery fence 15,000 Requested in FY25 budget. Cut to balance budget. Fire turnout gear 80,900 FY24 fire grant application denied. Fire protective gear 14,730 FY24 fire grant application denied. Fire RIT Pack 15,000 FY24 fire grant application denied. Fire Hose 18,112 FY24 fire grant application denied. Compression and career devopment 75,000 Review salary compression. study Vanderford Basin fence 130,000 Existing fence is beaten up and described as 'prison fence. I Sergeant Peppers alley project 10,000 Alley project off of East Innes Street. Swings Cannon Park 12,205 Current structure is not ADA compliant. Swings - Town Creek Park 13,255 Current structure is not ADA compliant. Camera trailer 44,116 Extra cameras at events or high crime locations. Speed radar 15,000 Extra speed control. Land Management web site 24,500 Improve efficiancies and allow staffto focus on plan review. New drivethrough equiment and 56,482 Aging equipment has failed and has no cover for weather. canopy-csc Requests received from departments 588,301 Mr. Furches suggested placing the request on the upcoming Agenda for Council's consideration. Mr. Greene stated he typically recommends a conservative budget, and he pointed out revenue estimates are examined mid-year to determine if additional revenue is available. He added if additional revenue is determined staff will reach out to department heads regarding projects that were cut from the budget and new projects that need to be pursued. He noted the items should be a one-time expense and the goal is to complete the projects by July 1, 2025. He stated staffidentified $700,000 in additional revenue which provides an opportunity to reconsider projects cut from the budget and additional projects that are needed. Mr. Drye reviewed sales tax revenue, and noted the City is experiencing growth but it is leveling out. He added projections show an expected increase of $500,000 in revenue over FY2024 and $300,000 over the FY2025 budget. He pointed out as inflation rose interest rates increased. He indiçated interest rates have declined since the Federal Reserve began reducing rates in September 2024 and another .5% to 1% decrease in interest rates is projected for 2025. He explained $1.2 million in interest income is budgeted for the current fiscal year, and $1.4 million is projected. He added staff anticipates a slight decrease in the budgeted amount of interest for FY2026 depending on the interest rates. Mr. Furches referenced the Broadband Fund: As of. June 30, 2025 the balance will be $10.405 million Annual debt payments of approximately $2.7 million are paid by General Fund transfer The payment equates to approximately .0629 cents on the tax rate Salisbury City Council January 28-29, 2025 - Retreat Page 9 Anticipated payoffis March 1, 2029 Hotwire will provide an update to Council at a future meeting Mr. Furches noted the challenges faced by the City: Flattening and decreasing revenues Staffing challenges Rising costs of payroll benefits and retirement Equipment needs with long lead times Infrastructure needs Growth Continued inflation Mr. Furches indicated the City is in a good financial position and it has available Fund Balance that can be used for future projects. He asked Council about its vision for the future. Councilmember Post asked how the changes at the federal level will affect the City. Mr. Greene stated holds have been placed on grants and staff is concerned. Assistant City Manager Kelly Baker noted the budget will be impacted, but staff is not aware of the extent. Councilmember Post pointed out the City's transit system is funded mostly by grants. He asked about other federal monies the City depends on. Planning and Neighborhoods Director Hannah Jacobson pointed out Community Development Block Grants (CDBG) and HOME funds come from the federal government. Mr. Post requested staff provide Council a list offederal funds the City may lose and the departments that will be affected. Transportation Director Wendy Brindle noted most of the Transportation Department's s Special Projects are funded with federal grants. Mr. Greene noted staffi is working with the City's lobbyist to get clarification. Mayor Pro Tem Sheffield questioned if Council should wait to review the projects that can be funded with the $700,000 in additional property tax revenue. Mr. Furches noted the proposed projects are relatively small. Mr. Greene commented the City is in a good tinancial position, but the unknowns must be considered. PRIORITIZING THE BLUEPRINT: CAPITAL IMPROVEMENT PLANNING City Manager Jim Greene thanked staff for its work on the Capital Improvement Plan (CIP). He added Council's feedback is needed to prioritize CIPitems. Budget Manager Tracey Keyes explained the CIP is a 10-year plan that outlines the City's vision and serves as a tool to strengthen connections between community infrastructure needs and the City's financial capacity. She pointed out the General Fund, Salisbury-Rowan Utilities (SRU) and Stormwater each have a CIP. She added the presentation will focus on the General Fund from Salisbury City Council January 28-29. 2025 Retreat Page 10 FY2026 until FY2030, and she suggested Council consider a five-year CIP since it is easier to plan for five years. She reviewed Downtown Development CIP requests: Empire Redevelopment Project Economic and Workforce Development First year (FY2026) Request - $200,000 for Phase I O Future phases have not been finalized, SO there is no firm commitment to support o Funding source - Fund Balance Main Street Project o Downtown support of Main Street Project O Economic and Workforce Developmentsusamible Infrastructure First year (FY2026) Request - $20,000 Additional years (FY2027-20230) - $10,000 o Funding sources = Fund Balance, grants, onatonsorganzationa. contributions Downtown holiday decorations ) Purchase holiday decorations Economic Workforce DevelopmenuSustainable Infrastructure/Cultural Amenities Total cost $105.000 (FY 2026-$5,000) Impact on operating budget - $12,000 Funding sources Downtown Development operating budget, Downtown Salisbury. Inc. (DSI) budget, grants and donations Ms. Keyes reviewed Fire Department CIP requests: Fire Station 2 renovations o Creating a dedicated decontamination area and turnout gear storage room Public safety o First year (FY2026): $1,250,000 o Funding Source: State grant appropriation Fire Training Facilities Tower at Station 1 and Training Facility at Station 6 Public Safety First year (FY2026): $265,000 (Station 1 $250,000/Station 6 anchors - $15,000) o Additional funding in FY2028: $300,000 for training facility at Station 6 ) Funding sources: Fund Balance, grants Fire Station 7 located in Bringle Ferry Road area Public Safety Funding needed in FY2030 = construction costs: $7 million o Funding sources: financing (acquire new debt), state grants. Fund Balance Operating Budget impact Staff: $930,000 New engine: $1.2 million Equipment/other costs: $200,000 Salisbury City Council January 28-29, 2025 - Retreat Page 11 Ms. Keyes pointed out some CIP projects will impact the operating budget. Mr. Greene stated the City is growing and it needs to plan for the next fire station. He added staff worked to determine where the growth will be regarding the best location for the next fire station. He noted ifthe growth does not come as quickly as anticipated the fire station could be delayed. He stated items included in the CIP may not be budgeted, and he pointed out an additional fire station will have operating costs that must be considered. Ms. Keyes reviewed Telcom CIP requests: Fire Alerting System o Installation ofMach Alert System Public Safety First year (FY2027): $500,000 ) Funding sources: grants, 911 funding. partnerships Seehawk Monitor Adding remote terminal units to radio tower site for tracking interference issues Public Safety First year (FY2026) - $55,000 Total cost: $220.000 Funding sources: grants, Fund Balance Ms. Keyes reviewed Police Department CIP requests: Firing Range Build and operate a firing training and certification range Public Safety First year (FY2026): $75.000 Additional funding: $6 million for construction Funding sources: grants, fund balance. partnerships Impact on Operating Budget: staffing. maintenance - $100,000 Facility Expansion Expand existing facility to provide for growth Public Safety Funding projected in FY2028 and FY2029: $8 million Funding sources: Fund Balance Impact on Operating Budget - $200,000 annual (supplies, maintenance, janitorial) Ms. Keyes reviewed Transportation Department CIP requests: Main Street Improvements O Upgrade aged infrastructure, add bump-outs. upgrade sidewalks and amenities along six blocks ofNorth and South Main Street Sustainable Infrastructure First year (FY2026): $9,283,444 with a City match: $1,856,689 Funding sources: Surface Transportation Block Grant (STBG)/Fund Balance Impacts on Operating Budget: other department budget requests, continued road and sidewalk maintenance - $300,000 Salisbury City Council January 28-29, 2025 - Retreat Page 12 Depot Multi-Modal Center - Purchase and renovate the Depot Sustainable Ihfastructure/Pconomic and Workforce Development Firstyear (FY2026): $3.750 million with a City match of$320,000 and a $3 million purchase price Funding sources: Congestion Mitigation Air Quality (CMAQ)/Fund Balance/State Transportation Improvement Program (STIP) funds o Impacts on Operating Budget: $285,000 annually for operation and maintenance Sidewalk Projects O Various sidewalks and intersection improvements O Sustainable Infrastructure First year (FY2026) - $589,414 with a City match of$117,883 Funding sources: Transportation Alternative Program (TAP)STBG/Fund Balance Ms. Keyes reviewed Planning and Neighborhoods CIP requests: Neighborhood Revitalization and Rehabilitation Assist homeowners in identified neighborhoods with exterior rehabilitation O Healthy, Safe, Engaged Neighborhoods First year (FY2026): $310,000 total cost: $3.55 million for 10 years Funding source: General Fund/Fund Balance Downtown Revitalization Incentive Ongoing program to promote, reuse and rehabilitate underutilized buildings Economic and Workforce Development First year (FY2026): $200,000 total cost: $3 million Funding Source: General Fund/Fund Balance Salisbury-Spencer Greenway Connection Several phased projects to connect the greenway to Stanback Woods in Spencer Cultural Amenities First year (FY2026): $50,000 for feasibility study O Additional funds needed for construction in FY2030 and FY2031 ($3 million) o Funding source: partnerships. federal grants, state grants, General Fund Kesler Mill Infrastructure and Local Participation Part of public-private redevelopment ofthe former 13-arce Kesler Mill site O Healthy, Safe and Engaged Neighborhoods Budgeted to start in FY2027 - $9,7 million Funding sources: General Fund, Section 108 Loan, various grants and possibly a private/public partnership Ms. Keyes reviewed Public Works CIP requests: Fueling site o Construction ofa fuel site Sustainable nfrastructure First year (FY2026): $1.7 million Funding sources: Fund Balance Salisbury City Council January 28-29, 2025 Retreat Page 13 Asphalt Resurfacing o Maintaining the City's 25-year resurfacing plan o Sustainable Infrastructure First year (FY2026): $1,050,625 o Funding sources: Powell Bill funds o Re-evaluation ofstreets will be requested Roof Audits and Replacements ) Audits of existing properties to identify mainemancerplacements needs O Sustainable Infrastructure O First year (FY2026): $250,000 Total cost: $4.275 million o Funding sources: General Fund/Fund Balance Garage Bay Addition o Addition to the Fleet facility O Sustainable Infrastructure First year (FY2026): $5 million Funding sources: Fund Balance Ms. Keyes reviewed Parks and Recreation CIP requests: Wells Fargo Building o Renovation of the former Wells Fargo building for infrastructure improvement and event space C Sustainable Infrastructure/Cultural Amenities C First year (FY2026): $6 million Funding sources: Fund balance, bond packages, grants Impact on Operating Budget: $250,000 annually Mult-Generational Community and Aquatic Center o Construction of a new recreation facility with Rufty-Holmes Senior Center Sustainable Infastructure/Culural Amenities 0 First year (FY2026): $15 million O Fundings Sources: bond packages, grants, partnerships and donations Infrastructure Projects Park improvements throughout the City O Cultural Amenities/Healty, Safe & Engaged Neighborhoods o First year (FY2026): $650,000 Funding sources: Fund balance, bond packages, grants, donations Projects include bathrooms at parks, a splash pad and shelter at Fred Evans Pool, outdoor basketball courts, tennis court/pickleball resurfacing, and park play structure improvements Ms. Keyes asked Council to select its top five priorities. Councilmember Post stated he has concerns about spending money due to the uncertainty at the federal level. Mr. Greene stated he is also concerned, but it is important to establish priorities. Salisbury City Council January 28-29, 2025 Retreat Page 14 Ms. Keyes stated Council prioritized the Depot and the Multi-Generational Center as its top two items. She added the Wells Fargo Center, bathrooms at Kelsey Scott and City Parks. outdoor basketball courts, asphalt resurfacing, community park improvements, the Empire redevelopment, training facilities for the Fire Department and the firing range also received votes. She pointed out the City must plan for large projects and how to fund them. Councilmember Post questioned ifitems such as bridge improvements should be included in the CIP. Ms. Keyes agreed some of the projects listed in the CIP are not capital improvement and changes may be needed. Mr. Greene stated staff will continue to refine the CIP. Retreat Facilitator JeffEmory stated the City is facing challenges, but it has a healthy Fund Balance with little debt. He added bonds could be an option, and he pointed out all the projects will not be funded in the coming year's budget. He commended Council and staff on the City's strong financial position, and he agreed the uncertainties in Washington will make the process more difficult than a typical budgetyear. He addedi itis important to determine Council's! priorities and to establish a funding plan. INFRASTRUCTURE IN ACTION: SALISBURY-ROWAN UTILITIES PROJECTS AND INITIATIVES Salisbury-Rowan Utilities (SRU) Director Jason Wilson, Assistant Director Jim Amaral and Labella Associates Southeast Regional Manager Keith Garbrick provided an update on SRU projects. Mr. Wilson reviewed the new raw water and intake pump station which is critical for future growth and will supply water to the utility for generations to come. He noted the City was awarded a Building Resilient Infrastructure and Communities (BRIC) grant to help fund the project. He reviewed a map ofthe area, and he pointed out the current pump station and the proposed location forthe new pump station. He displayed an artist rendering ofthe project, and he explained the project consists of an intake and pump station that is above the 500-year flood elevation which is critical to long-term sustainability ofthe utility. Mr. Wilson reviewed the electrical system upgrades to the Water Treatment Plan, and he thanked Council for its support oft the project. He indicated the project is currently in the design phase and funding for the upgrades will be needed in the coming years. He added the project is critical to SRU's long term ability to treat water. Mr. Wilson stated critical valve repair replacement is a recommendation of the Water Distribution Master Plan. He noted there are approximately 8,000 water valves throughout the system and the goal is to identify valves that require maintenance, repair or replacement. Mr. Wilson noted the sanitary sewer line rehabilitation is on hold, and he explained crews will remobilize in the coming months. He added the City must be strategic in its reinvestment and the worst offenders for inflow and infiltration must be considered. He explained flow monitoring and smoke testing is conducted to determine where repairs are needed. Salisbury City Council January 28-29, 2025 Retreat Page 15 Mr. Wilson referenced sanitary sewer lift station capacity upgrades, and he pointed out water and sewer capacity attract economic development. He added it is important to have right sized infrastructure for planned and future development. He noted staff is developing a master plan to identify and prioritize upgrades to build capacity for current and future development. Mr. Wilson noted the Town Creek Pump Station modifications will convert the existing effluent pump station to an influent and effluent pump station that will eliminate screw pumps. He added existing infrastructure will be used for the project. City Manager Jim Greene noted Council prioritized infrastructure investment. Mr. Wilson referenced SRU's Capital Improvement Plan (CIP), and he noted each year staffreevaluates the CIP to stay ahead ofg growth and development. He added the goal is to develop a comprehensive master plan that would prioritize capital improvement projects for 15 to 20 years. Mr. Wilson stated workforce planning is critical to SRU, and he added Labella Associates partnered with the City to conduct a staffing study. Mr. Garbrick stated the purpose of workforce planning and the Organizational Master Plan is to continue providing quality water and wastewater services to the region, and he added proper staffing levels with qualified individualsis critical. He stated SRU's customer base has grown while staffing levels remained the same. He indicated LaBella benchmarked SRU with peer providers in North Carolina to better understand staffing levels, organizational efficiencies and compensation in the industry. He commented the peer providers include Hickory, Kannapolis, Mooresville. Statesville, Thomasville, High Point and Union County and were selected due to their population size, service area, geographic proximity, and the number of treatment facilities. He pointed out both water and wastewater treatment capacities were considered with an average of 10 full-time employees per one million gallons of water treated with an average salary of $82,695. He indicated SRU has 4.78 full time employees per one million gallons of water treated, and he pointed our SRU would need to add approximately 96 positions to meet the average of peer providers in the area. He added the average salary at SRU is $86,270 which is above the peer providers average salary. Mr. Wilson asked Council to consider adding 27 full-time employees over the next four years which would bring the SRU employee count to 116. He stated SRU is a regional water and sewer utility and it has five fewer positions than it did 15 years ago. He indicated to meet the demand SRU has increased contracted services for work that was previously completed by staff. Mr. Amaral pointed out SRU is a 24-7 365-day operation with six people on call. He reviewed the organizational chart, and he pointed out water resources is fully-staffed. He noted staff reached out to the North Carolina Department of Environmental Quality (NCDEQ) and due to a history of compliance one oft the facilities can close at the end of the day. He added SRU is working to increase efficiency and alleviate employee burnout. Mr. Wilson noted SRU has worked with Human Resources regarding long-standing vacancies and instead ofrequesting new positions, current positions were reclassified to attract qualified applicants. He added the goal is to hire working level supervisors and let them build their individual teams. Salisbury City Council January 28-29, 2025 - Retreat Page 16 Mr. Wilson noted staff is requesting nine new positions for the coming fiscal year, eight positions the following year, and five positions in years three and four. He added the positions will be evaluated annually, and he pointed out the addition of27 full-time employees over the next four fiscal years will require approximately $3.2 million for salaries, FICA taxes, retirement, 401(K.) contribution, healthcare, life insurance, workers compensation and uniforms projected out with a 3% increase annually. He indicated capital needs include vehicles, computers. office furniture. and incidentals based on specific job functions: Labor Capital Total FY: 25-26: $766.821 FY 25-26: $225,000 $ 991,821 FY 26-27: $789,825 FY 26-27: $350,000 $ 1,139,825 FY 27-28: $813,520 FY 27-28: $180,000 $ 993,520 FY 28-29: $837.926 FY 28-29: $180.000 $1.017.926 3,208,092 $935,000 $4,143,092 Mr. Wilson indicated approximately 30% of SRU's budget goes toward personnel cost. He added there will be some deferred or delayed costs and with additional staffing SRU would have fewer service contracts. He noted last year Council approved a 3.5% rate increase and a 4% rate increase is recommended for the coming four years. Councilmember Post noted that 19% ofSRU's budget is contracted services. and he asked about the costs if the work was completed in-house. Mr. Wilson noted some of the contracts cannot be replaced by full-time employees. Mr. Post then asked if Council could receive a cost comparison regarding work done by employees and contracted service providers. Mr. Wilson agreed, and he pointed out most of the cost for the new employees would be covered by the reduction in service contracts. He noted in some cases it is more efficient to have employees do the work in-house and at other times a service contract is appropriate. He added SRU has had trouble attracting entry-level employees in the past. Mr. Greene pointed out utilities are becoming more sophisticated and specialized and staffing levels must be considered. He added the staffing recommendations will be brought to Council as part oft the budget process. TRACKING PROGRESS: DEVELOPMENT GROWTH REVIEW Land and Development Services Director Phillip Lookadoo explained Land and Development Services is responsible for permitting, plan review and the issuance of permits or approved plans. He reviewed the history of the department and current staffing. He noted Land and Development Services reviewed 2.444 applications in 2024, approved 1,681 permits and reviewed 249 sets of plans. Assistant Land and Development Services Director Tyler Kemo reviewed commercial and residential permits. and he pointed out the City is growing and utility reviews are increasing. He explained legislative reviews are text amendments and rezonings, and he reviewed the inspections by type. He pointed out 84 plans and 247 permits are currently under review. He commented Salisbury City Council January 28-29, 2025 - Retreat Page 17 2.953 reviews were completed in 2024. He referenced current review times, and he pointed out construction documents take approximately 60 days for the first review which is longer than other communities. He added staffis working to address the issues. City Manager Jim Greene noted he has received calls from Council regarding a developer, architect, or engineer stating it has been 30 or 45 days, and their plans are not approved. He pointed out the department was established just over a year ago and it is not fully staffed. He added the department is working to meet the demand and staffis not satisfied with the turnaround time. He explained the process is a partnership between staff and the developer and having a quality plan is critical to reducing review times. Mr. Lookadoo pointed out each permit or plan may require multiple reviews before the plans are approved and the permits are issued. Councilmember Post noted the current review time for construction documents is at least 168 days. Mr. Lookadoo noted in the case of a major subdivision the plat is reviewed and then it goes to the Technical Review Committee (TRC) for its review and if approved it transitions to construction documents. He indicated in some cases multiple reviews are required before the subdivision receives TRC approval, often with conditions and if the regulations are not met TRC can deny the application. Mayor Pro Tem Sheffield asked ifthere is a way to simplify the process. Mr. Lookadoo noted staff is considering items such as a check list and increased review fees that are used by other municipalities. Senior Planner Victoria Bailiffled Council through a Subdivision Simon Says game ofthe application process for a conditional district major subdivision. Councilmember Post asked if there is a way to streamline the process. Ms. Bailiff explained permits must be obtained from the state and County before staff can approve anything. She added many of the processes happen simultaneously. Mr. Post asked if there is a checklist for applicants. Ms. Bailiff stated staff has a checklist for plan review. and she pointed out a pre-application review is conducted. Mr. Post stated without a checklist it would be easy for an applicant to miss something that is required. Mayor Pro Tem Sheffield asked if applicants are assigned a staff contact to help them navigate the process. Mr. Lookadoo noted Engineer Larry Smith helps applicants navigate the process. Mr. Post noted he has received compliments from the development community regarding Mr. Smith. Mr. Lookadoo reviewed the steps being taken to improve the plan/permit review process: Improvements in process and communication New permitting software New web page for the Land Development Ordinance. Uniform Construction Standards Manual and the Forward 2040 Comprehensive Plan Hiring new employees Hiring consultants Including Salisbury-Rowan Utilities Implemented Walk-In Wednesday Salisbury City Council January 28-29, 2025 Retreat Page 18 Mr. Lookadoo reviewed challenges faced by the department: Slow "time held" analysis of a project. Poor quality of submittals has staff designing by review" o State standards are not being met Staff comments are not being addressed New software Mr. Lookadoo noted Outlook/forecasting: Proposed fees o Adding inspection fees Increasing review fees Reducing review times ) Application/plan checklists Getting messages out regarding the quality of plans Educating applicants, developers, and engineers 0 Reviewing internal processes and incorporating new technologies Additional staff Mr. Greene stated a good set of plans will have a faster review time. He pointed out some cities increase fees if additional reviews are required. Councilmember Post asked ifthere is a way to reward a good set of plans. Mr. Greene stated a faster turnaround is the reward. Mr. Lookadoo reviewed the organizational chart. and he noted staff recommends adding four positions in the coming fiscal year: a senior engineer, a construction inspector. a zoning inspector, and a senior planner. Mr. Greene noted staff is evaluating the processes, fees, and staffing to look for ways to increase efficiency. DATA DRIVEN GROWTH: ANALYZING STRATEGIC EXPANSION OPPORTUNITIES City Manager Jim Greene noted staff has evaluated annexations and ways to become more data driven. He noted Management Team members reviewed the process and realized a tool is needed to evaluate and gather annexation data. He stated Salisbury-Rowan Utilities (SRU)is using software to evaluate its infrastructure and water and sewer needs to make data-based decisions. He added this could be a City-wide opportunity to utilize a tool that has benefit through strategic evaluation, priority setting and growth evaluation. Planning and Neighborhoods Director Hannah Jacobson noted the City has three ways to grow: out through annexation, up through increased density and through infill development. She stated growth is coming to the City. She reviewed annexations from 2014 through 2024, and she pointed out the City had 32 voluntary annexations that expanded the City limits by 960 acres. Salisbury City Council January 28-29, 2025 Retreat Page 19 Ms. Jacobson pointed out not all developments have an equal impact on City services. She noted approximately two-thirds or 780 acres of the 960 acres that were annexed is dedicated to residential use and one-third is dedicated to industrial use. She indicated the land that has been annexed is not fully developed sO there are impacts to revenue and City services that have not come to fruition. She stated residential uses will have greater demands regarding emergency services, trash collection, street sweeping. and code enforcement. Ms. Jacobson displayed a map of the area, and she pointed out the City limits and the Extraterritorial Jurisdiction (ETJ) where the City has zoning and planning authority. She indicated the City is growing in all directions with industrial growth focused near Interstate 85. She noted annexations must come before Council three times for approval and the third meeting includes a public hearing and discussion. She stated staff is working to provide Council and the public with additional information earlier in the process. Ms. Jacobson reviewed the annexation website which educates the public on services that are gained through annexation and the process for voluntary annexation. She pointed out the annexation website also includes an annexation tracker. She explained an annexation memo is included in the Agenda Submission Form for the second meeting to help explain the potential impacts of the annexation. She added staff reviews the proposed annexation for consistency with the Forward 2040 Comprehensive Plan and General Fund revenue projections. She commented staff request feedback from departments that provide regarding service impacts. She indicated staff is working to provide data-driven analys sis ofthe revenues and associated cost. She pointed out the data could provide upfront cost estimates for developers, help to form long-range land use plans and help with capital improvement planning. Salisbury-Rowan Utilities (SRU) Director Jason Wilson introduced Withers Ravenel Chief Experience and Innovation Officer Eddlie Staley. He stated SRU has partnered with Withers Ravenel to predict future capital costs for water and sewer extensions and lifecycle modeling. Mr. Staley introduced Mr. Harold Winbrek, Mayor ofCary North Carolina and a consultant for Withers Ravenel. Mr. Staleyintroduced the Land Use Capital Investment Decision Model (LUCID) software that would allow the City to compare decisions and understand outcomes. He added the software would include the City's GIS dataset, lifestyle models to understand long-term needs, hydraulic models regarding capacity, Microsoft Power BI, Environmental Systems Research Institute (ESRI) web maps, and a date lake. He explained ifa voluntary annexation request is submitted staff could look at the demand on water and sewer, streets. fire, police and sanitation to determine the likely outcomes and costs if the annexation is approved. Mr. Staley noted it is important for the City make investments that will carry it into the future. He added the model will help staff predict when investment will be needed and where there is opportunity for growth with the least impact on City services and resources. He referenced the lifecycle model, and he added it is important to build out capital plans to create transparency. Salisbury City Council January 28-29, 2025 Retreal Page 20 Mr. Staley referenced a data gap analysis, and he stated the City has lifecycle models in place that can be used as a starting point. He reviewed the services provided by the software that will help determine the cost ofa voluntary annexation and the impact to the City and the developer. He added tax revenue can also be calculated based on land use which will help the City determine its return on investment andifthei investment is selfsustaining which can help the City be proactive. Retreat Facilitator Jeff Emory asked who updates the system to make sure material costs are accurate. Mr. Staley stated Withers Ravenel updates the software. Mr. Staley noted the City has an advantage since its water and sewer is already in the system and pavement will be added soon. He indicated the cost is approximately $15,000 per asset or infrastructure type with an annual maintenance cost of approximately $20,000. Mr. Greene asked how this software would work with other software. Mr. Staley explained the data would connect and interact with other software. Mayor Pro Tem Sheffield asked ifthe $20,000 maintenance was per asset or the total cost. Mr. Staley indicated it was the total for all assets. Mayor Pro Tem Sheffield asked ifl Planning and Neighborhoods Department would be able to leverage the software. Ms. Jacobson agreed. Mr. Greene pointed out as more annexations are brought to Council it is important to have the data needed to make informed decisions. He added the software would be a tool to help develop benchmarks and prioritize values. He asked Council ifit wishes to pursue the software as part of the budget process. By consensus. Council agreed. SESSION WRAP-UP Retreat Facilitator Jeff Emory noted discussions took place regarding visioning and growth. He added a General Fund, Fund Balance of$13.9 million was identified with an additional tax revenue of approximately $650,000 to $700,000. He indicated approximately $590.000 worth of items were cut from last year's budget that could be financed in this year's budget due to additional growth. City Manager Jim Greene stated the items will be placed on the next Agenda for Council's consideration. Mr. Emory pointed out Council and staff must keep a close watch on what is happening at the federal level. He stated there was discussion regarding the Capital Improvement Plan (CIP) process and individual Councilmembers identified their priorities. He noted there will be financial challenges in the coming year, but potential funding options can be considered. He added there was a need in Salisbury-Rowan Utilities (SRU) and the Public Works Department for additional full-time employees. He commented improvements have been made in the permitting process. He noted Council seemed interested in exploring the Land Use Capital Investment Decision Model (LUCID) software. He asked if Council had any questions or if it would like additional information on any of the items that were presented. Councilmember Jackson stated he would rather wait until tomorrow to have a full discussion. Council agreed. Salisbury City Council January 28-29, 2025 - Retreat Page 21 Mayor Pro Tem Sheffield thanked everyone who worked to make the first day of the Retreat a success and to keepthe focus on the Strategic Plan. She added there was a huge emphasis on infrastructure investment as a focus for the City's future. RECESS Thereupon, Councilmember Post made a motion to recess until Wednesday, January 29, 2024 at 8:30 a.m. Mayor Pro Tem Sheffield, and Councilmembers Jackson, McLaughlin, and Post voted AYE. (4-0) The meeting was recessed at 4:11 p.m. REVISITING THE VISION - DAY2CHECKIN City Manager Jim Greene thanked Retreat Façilitator Jeff Emory for his work on the Retreat. He encouraged Council to ask questions and provide feedback and direction to staff. Assistant City Manager Kelly Baker relerenced a memo from the City's Lobbyist suggesting the City conduct business as usual, but to not spend federal money. She indicated the Lobbyists recommend taking inventory of federally funded projects, SO staffidentified projects for Transit, Community Development Block Grant (CDBG). Congestion Mitigation and Air Quality (CMAQ), and other items that total approximately $10 million. She noted the budget season will be challenging and updates will be shared as they are received. Transit Director Rodney Harrison explained the North Carolina Department of Transportation (NCDOT) sent an email advising municipalities to conduct business as usual and NCDOT will provide updates as it continues to look for clarity. SUSTAINABLE SOLUTIONS: A NEW PATH TO RECYCLING City Manager Jim Greene noted Council visited the City ofConcord last year and learned about its solid waste and recycling programs. He added Council will need to decide on the future ofthe City's recycling program. He commended Public Works Director Chris Tester for his work to provide recycling options. Mr. Tester pointed out the recycling project aligns with the Strategic Plan key focus areas ofSustainable Infrastructure and Organizational Excellence. Assistant Public Works Director Michael Hanna stated the City's recycling program began on July 1, 2020, with Republic Services and it included a three-year contract and a two-year extension that will end June 30, 2025 at a cost of$5.77 per recycling cart per month. He noted the annual audit from Republic Services found a 28% contamination rate highlighting the need for recycling education. He pointed out the City introduced a "Guide to Trash, Recycling. and Yard Waste" booklet to explain recycling guidelines and how to reduce contamination. He indicated the goal is to minimize significant increases in the recycling fees while planning for the program's future. Salisbury City Council January 28-29, 2025 Retreat Page 22 Mr. Hanna explained staff conducted internal recycling audits to assess participation and contamination. He noted approximately 500 carts were assessed and with a 60% participation rate and a 28% contamination rate. He noted a Request for Proposal (RFP) took place in October with Republic Services, Select, and Waste Management submitting proposals. He commented Republic Services had the highest overall scores. He noted staff also benchmarked other cities such as Concord, Greensboro. and Mooresville to determine what their recycling programs includes. He reviewed recycling options: l-year recycling contract with City provided cans 3-year recycling contract with City provided cans and an opt-out option 3-year recycling contract with contractor provided cans 3-year recycling contract with contractor provided cans and an opt-out option In-house curbside recycling operations In-house convenience site operations Eliminate the recycling service Mr. Hanna noted an increase of approximately $2 per collection point would occur with the recycling opt-out option as it is harder to predict. Mr. Tester explained that staff recommends a hybrid approach to keep Republic Services another year at the fee of$6.28 per pickup point per month with no rate increase for customers. He stated staff will simultaneously prepare for in- house curbside recycling, and he noted the estimated startup cost will be $845,000 and ongoing operational cost will range from $360,000 to $490,000 annually. He stated the startup costs will include a truck, recycling cans from Republic Services, decals to cover the existing label, two recycling staff members for three months and education materials. He pointed out ongoing costs will include the purchase of additional cans, maintenance on the cans and trucks, recycling fees, hauling fuels, disposal of contaminated loads, camera systems to monitor what is being recycled, recycling staff, educational materials, and inflation adjustments. Mr. Tester pointed out in-house curbside recycling offers long-term savings. He explained an initial $1.7 million investment will be required for the first year and by the third- year staffanticipates repaying the Capital Reserve and General Funds. He stated staffwill assess services and fees annually and it anticipates adding a route between the fourth and fifth year that will require a new truck that can be funded by savings from the in-house operations. He added staff will explore expanding services and opportunities to recycle a broader range of materials. He stated staff also proposes to consolidate the waste collection, landfill, and recycling fees into an environmental fee. He reviewed the benefits ofin-house recycling: Aligns with the City's Strategic Plan Key Focus Area ofSustainable Infrastructure Cost savings High return on the investment Eliminate fees from external contracts, including annual rate increases. Operational efficiency Improved customer service Possible Grant funding sources not built into the costs o Solid Waste Infrastructure for Recycling Grants for Communities Community Waste Reduction and Recycling Grant Program Salisbury City Council January 28-29, 2025 Retreat Page 23 Mr. Tester noted the cons oft the program include: Materials Recovery Facility (MRF) pricing may fluctuate due to market conditions Prompt action is needed to establish a contract with MRF and to purchase a truck Education is needed to reduce the contamination rate Unknown risks associated with rising fuel and equipment costs Will not allow the City to recycle glass in City operations Councilmember Post asked what items cause contamination. Mr. Tester explained the main contaminant is plastic grocery bags. Mr. Hanna noted other contaminants are plastic bags used for bag recycling. greasy pizza boxes, yogurt cups, styrofoam and other packaging items. Mr. Tester added glass can be recycled at the Rowan County Convenience Recycling site. He indicated in-house recycling could give the City the opportunity to look at potential convenience sites. He reviewed the recycling timeline: The recycling fee remains the same to execute this project I-year recycling contract with Republic Services to begin July 2025 Simultaneously prepare for In-house curbside recycling during FY 2025-2026 2 new recycling staff members hired April 2026 to prepare for in-house operations City to begins in-house curbside recycling July 2026 Consolidating the waste collection fee, landfill fee, and recycling fee into a single environmental fee to be introduced July 2026 Begin repaying the Capital Reserve Fund and the General Fund with the goal of completing the repayment by FY2028 Mayor Pro Tem Sheffield asked about the 28% contamination rate and the 60% participation rate. Mr. Tester pointed out a 25% contamination rate is normal. He explained when the City ofGreensboro implemented in-house recycling services, provided education, and removed contaminated cans, their contamination rate dropped to 10%. He indicated he would like to see the City have a 10% contamination rate and 75% participation rate. Councilmember Post asked about other municipalities' participation rate and why the City's rate is lower. Mr. Tester noted other municipalities' rates are around 70%, and he explained the lack of education and not having an option to remove the contaminated cans causes an increase in the contamination rate. Mr. Greene pointed out if recycling is brought in-house the City would have more control and be able to provide better customer service. He asked Mr. Tester to provide insight into eliminating recycling services. Mr. Tester stated ifthe City discontinues recycling services most residents will not use the County's recycling sites, and the recyclables will be converted to trash filling the landfill more quickly. He added the City would need another garbage truck, another route and more employees to handle the increased trash which would increase costs. Mr. Greene explained costs in other areas may increase if recycling is eliminated. Mr. Tester commented overhead costs will not go away, and he noted a truck must travel every street even if only one can is collected. He added it is difficult to determine a participation rate if there Salisbury City Council January 28-29, 2025 Retreat Page 24 is an opt-out option. He noted staff can research opt-out options, but it would be the least desirable option. Mr. Greene recommended recycling service be conducted in-house with a one-year transition. He noted the City will need to purchase a truck. hire staffand work with the contractor to pay for cans. He indicated the loan from the General Fund should be paid off in three years. By consensus. Council agreed to proceed with in house recycling options. EXPANDING COMMUNITY CONNECTION: PARKS AND RECREATION REVIEW Parks and Recreation Director Keisha Coxe provided an update on parks and recreation projects. She noted parks and recreation facilities are open six days a week, which allows the department to provide the community with quality programs and rental spaces. She stated in FY2024 parks and recreation facilities had 374 rentals and as of January 2025 staff had to turn down 25 rentals due to limited space and staffing. City Manager Jim Greene thanked and Parks and Recreation staff for providing additional services with a limited impact to its budget. Ms. Coxe stated one ofCouncil'skey focus areas was to enhance cultural amenities within the community. She reviewed the recently renovated Miller Teen Recreation Center noting that the renovations were completed early last year at a cost of $261,481. She indicated the center currently serves 15 to 20 teens per day, and she displayed photos ofthe renovated game room and highlighted the new games available. Assistant Parks and Recreation Director Rakeem Brawley reviewed programs at neighboring açilities: Leadership Academy English as a Second Language (ESL) Classes offered twice a week at the Civic Center Senior Connections Mr. Greene thanked the Parks and Recreation Department for offering programs to fit the community needs. Councilmember McLaughlin emphasized the importance ofthe ESL program, and he pointed out many community members speak English as a second language. Ms. Coxe provided an update on the Hall Gym Renovation project. She displayed photos of the recently renovated lobby and gym. She noted the basketball court was designed with wider pads to enhance safety and accommodate programming needs. She stated the lobby features LED interior and exterior lighting. She displayed photos of the renovated multi-purpose classroom and noted improvements such as new paint, LED lighting, and new windows. She added staff collaborated with Neighboring Concepts to design the wrestling room. She added the renovation aims to transform 2,000 square feet ofs space into a fully functional area that meets the needs ofits users. She outlined the scope ofwork for the wrestling room, which includes: Demolition of existing walls and wood window infill assemblies Bathrooms and kitchen upgrades Salisbury City Council January 28-29, 2025 - Retreat Page 25 Newinterior features including structural walls, ceilings, and flooring System overhauls, including updated electrical, mechanical. and plumbing installations Storefront modifications Ms. Coxe reviewed the plans for the Patriot's Flag Concourse, and she presented an aerial image ofthe site including designs for the Arch of Freedom. She explained the Salisbury Rotary Club raised $50,000 for the project, and she pointed out Taylor Clay Products donated the bricks that are expected to be ready by March. Finance Director Wade Furches provided an update on American Rescue Plan Act (ARPA) funds allocated for Parks and Recreation projects. He noted the City allocated $2.2 million to parks and recreation facilities and the Wells Fargo/Civic Center. He displayed expenditures to date and noted the overall balance is now $1,227,985. He reviewed the remaining project expenditures, which included the bathrooms at Kelsey Scott and City Parks, the Hall Gym wrestling room renovation, remaining design fees for Wells Fargo, and remaining master plan fees. Public Works Director Chris Tester presented information on the costs associated with bathrooms at Kelsey Scott and City Parks. He explained prebuilt modular restrooms provide a practical and efficient solution with an installation cost of $200.000 per site. He expressed concerns related to the restrooms, including potential issues like vandalism, hazardous materials, and intentionally clogged fixtures. He noted the estimated cost for cleaning and maintaining the bathrooms is $30.000 annually. He stated to enhance safety staff recommends the bathrooms be equipped with features including outward opening doors. durable fixtures, surveillance cameras and an alarm system to notify the Police Department ifsomeone exceeds the designated occupancy time. Mr. Greene noted Council prioritized using ARPA funds for bathroom facilities. and he asked Council if the bathrooms should remain a priority or if staff should evaluate available funding for other projects. Councilmember Post asked how much the port-a-potties cost at City Park. Mr. Tester stated he would get that information to Council. Councilmember Post added he previously supported having bathroom facilities in parks but due to the issues encountered with the bathrooms at Bell Tower Green (BTG), he is concerned the facilities may lead to safety problems and excessive maintenance costs. Councilmember McLaughlin asked who cleans the bathrooms at BTG. Mr. Tester stated the City has a contract with MTO Cleaning for cleaning and stocking the restrooms. He noted staff assist in servicing the bathrooms two days a week. Mr. Greene asked if Council would like to proceed with the recommendation for the modular restrooms at Kelsey Scott and City Parks. Council agreed to revisit this topic. Salisbury City Council January 28-29, 2025 Retreat Page 26 Ms. Coxe invited Architect Pete Bogle to provide an update on the event center project located at 130 South Main Street. Mr. Bogle stated the project presents an exciting opportunity for the downtown area. He noted the project has included numerous input and engagement meetings. Mr. Bogle presented the conceptual design plans for the building. He stated the vault could be converted into a small conference room or it could be removed to gain additional space. He reviewed the second-floor conceptual design plans. He noted the first option is to open the space for multiple conference centers and the second option is to keep the existing office space. He discussed façade improvements. including additional windows and street trees as part of the Main Street Improvement Plan, as well as opportunities for more tree islands along West Fisher Street. He noted the lighting plans will include accent features, along with provisions for safety and signage. He pointed out the next steps for the project include roof explorations, site surveys. cost estimates, budget recommendations. coordination with engineering firms, and ongoing discussions with Council and staff. Mr. Greene pointed out funding for the project has not been identified, and he noted staff will bring recommendations to Council for its consideration. Councilmember McLaughlin asked if the vault could be used for storage. Mr. Bogle agreed, and he indicated it has limited space. Ms. Coxe introduced Ms. Danielle Scesney with CPL Architects who provided an update on the multi-generational facility project. Ms. Scesney reviewed the project goals and objectives. and she indicated public input sessions were conducted. She noted community members indicated the facility should be bright, welcoming, safe, and tocused on community engagement. Ms. Scesney reviewed the draft conceptual designs, and she noted the lower level would include shared program spaces such as a lobby and pool equipment room. She stated the recreational area would feature two indoor courts, party rooms, a concession stand, and locker rooms with restrooms. She stated the senior center would offer indoor pool therapy. fitness classrooms, and space for cardio and weight training. She reviewed the conceptual design plans for the main level, noting the shared space would include a walking track. She added the recreation area would feature exercise classrooms, staff support facilities, and a child watch room. She indicated the senior space would also contain a lobby, café, multipurpose rooms, a classroom, and a catering kitchen. Ms. Scensey reviewed the upper-level conceptual design plans and noted that the shared spaces would include a teaching kitchen and an exterior balcony. She mentioned that the recreation area would feature multi-purpose rooms, while the senior space would consist of game and card rooms, volunteer outreach areas, and classrooms. She reviewed the conceptual designs for an outdoor aquatic center and an indoor therapy pool. Ms. Scensey noted the site design would include key elements such as a building entrance at the lower and main levels. a dedicated entrance for seniors, and views overlooking Town Creek Park. She added the shared spaces are intended to promote community engagement, and she pointed out peak usage times differ between the Parks and Recreation facilities and the Senior Center which allows for flexible use of shared spaces. Salisbury City Council January 28-29, 2025 - Retreat Page 27 Mr. Greene thanked Ms. Scesney and her team for their work on the project, and he thanked the public for its input. He asked ifCouncil is still interested in collaborating with CPL and Rufty Holmes to secure funding for the multi-generational facility. Councilmember Post expressed a desire to move the project forward and evaluate its costs. Mr. Greene pointed out that the City and Rufty Holmes have had to make project cuts due to funding limitations. He explained the importance ofensuring that the facility meets the needs oft the Senior Center and the City. Council agreed to continue conversations on the multi-generational facility. Ms. Scensey noted that ifCouncil is interested in moving forward the next steps for master planning would include: Preparing a cost estimate for the building and site concept design Preparing a pro-forma to determine staffing projections, operating expenses and venue Holding additional engagement sessions Present final recommendations for approval FINANCING TOMORROW: STRATEGIES FOR FUNDING LARGE-SCALE CAPTIAL PROJECTS City Manager Jim Greene thanked Financial Advisor David Cheetwood for presenting various options for project funding. He noted it is important for staff to continue to pursue grant funding opportunities. Finance Director Wade Furches pointed out the City is considering projects that cost a lot of money; however, the City is in good financial standing and has the capacity to borrow money. Mr. Cheetwood provided an overview ofhow the City could issue debt for multiple parks and recreation projects, and he added the City must evaluate the available and appropriate structures for financing. He noted the City's bond Counsel Robinson Bradshaw, financial advisor First Tryon, and the Local Government Commission (LGC) are all resources to identify and evaluate the appropriate structures for financing. He indicated the financing structure is highly dependent on the type of project being financed with the two primary structures available to North Carolina entities including General Obligation (GO) Bonds and Limited Obligation (LO) Bonds/Installment Financing. Mr. Cheetwork explained GO Bonds are backed by a pledge of full faith, credit and taxing power by the City and the City's current and future ability to levy taxes. He noted GO Bonds are considered the safest, most secure credit and typically have lower interest rates. He added while GO Bonds are secured by the City's taxing power, the City may use any other legally available funds to repay the debt. He indicated the LGC generally requires that GO Bonds be amortized and repaid over a period of up to 20 years. He added the City's total GO debt may not exceed 8% of the City's assessed value. He commented GO Bonds require voter approval through a referendum on the ballot at the municipality's general election. He explained that the GO Bond referendum process generally takes five to six months from start to finish and includes three actions by the Council as well as approval by the LGC, which comes after a referendum is approved. He pointed out Council's actions generally must be completed by the end ofJ July or early August to allow the Salisbury City Council January 28-29. 2025 - Retreat Page 28 County Board of Elections time to prepare the ballots. He pointed out the more information that is provided regarding a project will help voters trust the plan. He noted upon voter approval, the City has seven years to issue the GO Bonds. Mr. Cheatwood noted that LO Bonds are issued in the public market and the Installment Financings issued in the bank market are both secured by a lien on the assets being financed. He stated the lien on the asset being financed is a Deed of Trust for real estate assets or a Uniform Commercial Code (UCC) filing for equipment or vehicles. He added ifthe City does not make its debt service payment, the lender can toreclose or take possession of the asset. He commented given the requirement of a lien, the projects being financed are often brick and mortar facilities such as city hall, police or fire stations or tangible assets as opposed to streets, sidewalks, or greenways. He stated LO Bonds and Installment Financings are viewed as less secure than GO Bonds and therefore carry a higher interest rate of approximately 0.25%. He indicated the LGC generally requires that LO Bonds or installment financings be amortized on a level principal basis and repaid over a maximum of a 20-year period although the LGC is re-evaluating this custom. He iterated that LO Bonds or Installment Financings do not require voter approval, just two approvals by Council, a public hearing and LGC approval which typically takes 90 days. Mr. Cheatwood pointed out certain projects may fit better in one funding category over the other. He added if the project is IO serve the citizens it cannot be for voter approval since there would be a need for the project. He presented debt service and tax impact examples. He explained the projects could be financed with either the GO Bond or LO Bond installment financing. Mr. Greene thanked Mr. Cheatwood for his presentation. He advised the funding options are an option for Council" s consideration to finance projects. He pointed out when projects take place there will be requests for additional staff, an increase in utilities and maintenance costs to be funded from taxes or other sources. Councilmember Post asked if the tax rate impact would decrease as the payments step down each year. Mr. Cheatwood explained the tax rate could be lowered, but most municipalities do not do that. PROTECING THE FRAMEWORK: PUBLIC SAFETY UPDATES Police Chief Patrick Smith and Fire ChiefBob Parnell provided an update on public safety. ChiefSmith pointed out the Police and Fire Departments have collaborated on ajoint holiday party and participated in a softball game to benetit Special Olympics. ChiefParnell noted the City's public safety has always been a tight community. He added the City Manager, Police Chief and Fire Chief meet weekly to discuss public safety issues. Chief Smith reviewed staffing levels. calls for service and property crime of burglary and motor vehicles that took place in 2024. He noted there were nearly 47,000 calls for service with nearly 5,000 reports submitted and nearly 5,400 follow-up reports. Salisbury City Council January 28-29, 2025 Retreat Page 29 City Manager Jim Greene asked ChiefSmith to explain the timeframe for an officer being hired to the time they begin work. Chief Smith stated if an unexperienced police officer is hired today they would begin Basic Law Enforcement Training (BLET) in June or July, would graduate in January, and then complete three months of officer training to then become a realized officer in fleet by March 2026. He added if a police officer was hired from another agency, that officer could become a realized officerin fleet within three months or less. Councilmember Post asked if the academy training was delayed due to the current semester having begun. Chiefs Smith agreed, and he added the college would consider an additional class ifit had enough students to fill it. Mayor Pro Tem Sheffield asked about the duties are for a newly hired officer that does not start BLET right away. ChiefSmith explained that the officer works in different areas ofthe Police Department, trains with civilians and the Crime Scene Investigators, learns the culture of the department and visits other City departments. He noted the officers study and exercise to prepare for the academy. Chief Smith reviewed the violent crime ofhomicide. rape, robbery, and aggressive assault statistics for 2024. He explained gun crime comparisons from 2020 through 2024, and he noted there were 521 incidents of shots fired in 2024. He reviewed foot patrols that were conducted in December, and he pointed out hot spots for property and violent crime. He noted there were nine homicides in 2024, and he added there has been a decline in drug overdose and drug overdose deaths in the past few years. Councilmember McLaughlin asked about overdose deaths declining. Chief Smith explained there are a lot of factors regarding a decline in overdose deaths which could be due to education. lessened opioid use, or the availability of Narcan outside of emergency personnel. Mr. Greene thanked Chief Smith for his work to fill vacancies, and he added Chief Smith is using nonsworn personnel to reduce the workload ofsworn officers SO they can spend more time on the streets. He noted the City has partnerships with the State, Sheriff's Office, Federal Bureau ofinvestigations (FBI) and State Bureau ofinvestigations (SBI) and has had great success bringing in additional resources. ChiefSmith noted the Sheriff and Police Departments Chiefs throughout the County meet bi-monthly to share information. He added that the SBI has been a great partner, and the Police Department has a direct connection to the agency. He added the City also has great partnerships with the Bureau of Alcohol, Tobacco and Firearms (ATF) and Homeland Security. Chief Parnell introduced new Telecom Director Brain Scearce. He started Fire Station 3 is still under construction due to delays. He pointed out the facility will include management offices to house the Fire Marshalls from Park Avenue and Telecom from the Customer Service Center. Chief Parnell explained Fire Station 2 was built in 1980 and needs upgrades including a decontamination area and a gear room. He noted there is a $10 million state public safety grant that can be used for the proposed improvements. He stated the fire training tower behind Fire Salisbury City Council January 28-29, 2025 - Retreat Page 30 Station 1 was built in 1973 and needs repair. Councilmember Post asked if the City utilizes the Fire Training Facility at Rowan-Cabarrus Community College. Chief Parnell agreed. ChiefParnel! explained there has been a steady increase in emergency calls in and around the City. He indicated there were 9,055 calls in 2024 and 9,313 calls in 2023 which equates to more than one emergency call each hour. He pointed out safety education outreach has increased over the past few years. He noted fire code inspections have decreased due to large-scale inspections taking longer to complete. Chief Parnell reviewed serious fires that took place in the City in 2024, and accomplishments. certifications and recertifications the Fire Department received. He stated the Fire Department needs two fire inspectors, additional firefighters, a full-time receptionist at Fire Station 3, and for shift work pattern or work hours to be modified to facilitate modern retention and recruitment needs. He indicated the firefighters work 24 hours on shift and 48 hours off shift even holidays. He noted surrounding fire departments are trying different shift patterns which may be an emerging trend that could impact staffing and services at the Fire Department. Councilmember Post asked how many positions the Fire Department has open. Chief Parnell commented the Fire Department has the designated number of positions filled with seven recruits in the firefighter academy that will graduate in four months. Councilmember McLaughlin asked about the minimum number of firefighters on a fire truck. Chief Parnell noted there 22 on each shift which includes 21 firefighters and a Battalion Chief. Mr. Greene stated after receiving feedback from fire fighters he recommended including cancer screenings in last year's S budget as part of the fire fighter's S annual physical. Chief Parnell explained that firefighters receive annual physicals as a part of Occupational Safety and Health Administration (OSHA) and the North Carolina Department of Labor requirements due to their response to hazardous material calls. He indicated there was concern about the quality of previous physicals, SO staff hired Professional Health Services to provide physicals that include cancer screenings. He indicated he received positive feedback from the firefighters regarding the extra screening. VISION TO ACTION: SHAPING 2025 PRIORITIES Facilitator Jeff Emory noted Council received a lot ofinformation, and he stated Council agreed to proceed with staff S recycling recommendation. He added Council requested additional information on the Parks and Recreation projects and financing options. City Manager Jim Greene commented Council wants to continue its work with Architect Pete Bogle regarding the Parks and Recreation projects. He noted staff does not have a cost estimate on the projects at this time. He asked if Council wants staff to work with Mr. David Cheatwood and the Finance team on funding opportunities for the Wells Fargo Building. By consensus. Council agreed. Salisbury City Council January 28-29, 2025 Retreat Page 31 Mr. Greene stated staff will explore grant opportunities, and he added the goal is to develop the event space downtown before work begins on the Civic Center. Mayor Pro Tem Sheffield pointed out there is more to explore with the multi-generational space and there is a more realistic vision for the Wells Fargo Building. She added parking options are needed to support the event space. Councilmember Post agreed, and he suggested proceeding with the plans for the Wells Fargo building and parking simultaneously. Mr. Greene noted the Empire Project will also have parking needs, and he stated staff will continue to evaluate downtown parking. Mr. Emory noted the Police and Fire Departments presentations were great, and he added the requests for additional personnel is part of the budget process. Mr. Greene commented each department provides budget submissions and staff works to create a recommendation for Council's consideration. Mr. Emory explained several projects were discussed that will be reviewed during the budget process. He noted Council supported park restrooms, and he asked Mr. Greene ifCouncil's direction is needed. Mr. Greene noted Council's direction would be helpful. Councilmember Post indicated he prefers mobile restrooms that can be used at other locations. Public Works Director Chris Tester noted the prebuilt and the stick-built restrooms cost the same, and the mobile restrooms are a little less than halfthe cost. Councilmember Jackson agreed to move forward with the restrooms, and he added the parks would probably be used more with restroom facilities. He added Parks and Recreation Department staff should have input regarding the restrooms. Parks and Recreation Director Keisha Coxe explained the concern is with maintenance and cleaning the restrooms, and she noted staff prefers site-built facilities. Councilmember Jackson agreed with site-built facilities. Mr. Tester noted prebuilt could cost less, but it depends on when the restrooms can be delivered and how quickly Council wants to have the restrooms installed. Mr.Jackson suggested waiting another few months for the restrooms to be built. Mr. Greene noted stick-built restrooms at both parks would need cleaning services or a staff person to maintain the restrooms. He asked Mr. Tester to work with Ms. Coxe to bring information back to Council for its consideration. By consensus, Council agreed to proceed with stick-built restrooms for Kelsey Scot and City Parks. SOLIDFYING THE FRAMEWORK: CLOSING THOUGHTS Councilmember Jackson thanked staff for a well-organized Retreat. Councilmember Post commented that Rufty Holmes Senior Center is out of space; however, the cost of a new Civic Center and the new Senior Center is approximately the same. He noted those who use the senior center may not want young kids running around, and he does not think it will work. City Manager Jim Greene thanked Mr. Post for comments, and he asked Council to keep an open mind as the options are considered. Mayor Pro Tem Sheffield thanked staff for considering the options, and she added she still wants to look at the multi-generational partnership and the opportunity to explore bonds. She reminded Council its vision is created by information provided by staff, and she thanked staff for its expertise. Salisbury City Council January 28-29, 2025 - Retreat Page 32 Councilmember McLaughlin thanked staff for the presentations, and he noted it is important to manage growth and to look at ways to meet staffing needs. Mr. Greene thanked Mr. Emory for facilitating the Retreat, and he also thanked Council for its feedback that sets the foundation for the budget process. He thanked the Management Team for their work to make the Retreat a success. Assistant City Manager Kelly Baker thanked Council for giving its time to set the vision for the City. She thanked the Management Team, Senior Administrative Specialist Atalie Bare and Administrative Specialist Claire Karriker for their work preparing for the Retreat. Mr. Emory thanked staff for the opportunity to facilitate the Retreat, and he also noted Mr. Greene and Ms. Baker were great to work with. Mayor Pro Tem Sheffield thanked staff for its work on the Retreat. She noted although we have been distracted by the tragic loss of Mayor Karen Alexander, everyone has remained focused on what she found important and that was to work hard to make the City a better place fore everyone. ADJOURNMENT Thereupon, Councilmember Post made a motion to adjourn. Mayor Pro Tem Sheffield, and Councilmembers Jackson, McLaughlin and Post voted AYE. (4-0) The meeting was adjourned at 2:48 p.m. omann Tamara Sheffield. fayor Pro Tem Couus B5ud Connie B. Snyder, City Clerk Salisbury City Council January 28-29, 2025 - Retreat Page 33