TOWN OF YADKINVILLE BOARD OF COMMISSIONERS SPECIAL CALLED MEETING MINUTES BODGET WORKSHOP LOCATION: COMMISSIONERS CHAMBERS 213 VAN BUREN STREET YADKINVILLE, NC 27055 FRIDAY,APRIL 25, 2024 OFFICIALS PRESENT: STAFF PRESENT: Mayor Eddie Norman Town Manager: Mike Koser Commissioners: Town Clerk: Alex Potts Monta Davis - Oliver Finance Director: Hunter Gooden Tony Hall Police Chief: Philip Scott Richie Parker: Arrived at 12:25 p.m. Public Works Director: Jacob Swaim Scott Winebarger Absent Police Admin Assistant: Missy Vestal Chris Matthews The Town Board of Commissioners met in a "Special Called" Meeting on April 25, 2025, to discuss the 2025-2026 Fiscal Year Budget. The purpose of this meeting is to provide guidance to the Town Manager and other Department Heads as they prepare for the 2025-2026 Fiscal Year Budget. Additionally,it aims to establish priorities and strategies that will influence the budget for the 2025-2026 Fiscal Year. 1. CALLTO ORDER The meeting was called to order by Mayor Eddie Norman at 12:11 p.m. 2. INVOCATION Town Manager Mike Koser offered the invocation. 3. FISCAL YEAR 2025-2026 BUDGET WORKSHOP (Attachment #1) Town Manager Mike Koser presented the Board of Commissioners with a 2025-2026 Fiscal Year Budget Recommendations handout. The Town Manager's suggestions were as follows: 1. Town Manager Mike Koser gave an overview of the General Fund revenue projections, gains. losses. and new sources of revenue: The Fiscal Year 2025-2026 estimates a 1% increase in revenue. Mr. Koser projected using $507,993 from Fund Balance due to a 14% expenditure increase. Governing Body e 1% increase from the previous year. 8% increase for miscellaneous line items. (Board Appreciation Dinner. Employee Christmas Luncheon, Christmas Bonus, Board meeting lunches, sympathy flowers, retiree celebrations, etc.) Administration - o 6% increase from the previous year due to moving salaries from Water and Sewer Fund to the General Fund. Elections Three seats are open for election in 2025. $7,000 Planning and Zoning 3% decrease $20,000 for Façade Grants $15.000 for Business Investment Grants Municipal Buildings o 9% decrease o $4,500 for fountain lights replacement o $7,000 backup power generator o $2,500 new safe Police - e 14% increase Continued funding for LEO Special Separation Allowance for retiring officers by State Statute (3 Officers receiving funds). e 2 Vehicles with upfit at $122,400 $110,000 for half the cost of new 800-megahertz (Viper) radio devices (Over 2 years) Public Safety and Garage - 21% decrease decrease in telephone charges. $1,500 Replace bench vise Strects - o 32% increase 44% increase in payroll from staffing change. o Increase in street lighting cost $65,000 street repaving Request for $2,000 for patch paving compactor; $3,000 for street sign replacement: and $10,000 to convert service truck to a dump bed. Powell Bill = o 24% increase Powell Bill is expected to improve Estimated Revenue $103,000 Streets being considered for repaving: Crescent View, Bush, Coolidge. Spring, and Ash Street. $30,000 budgeted for street repair patching Will not use Powell Bill Fund Balance for FY 25-26 Mayor Norman asked about North Jackson Street. Public Works Director Jacob Swaim mentioned that it needs to be completely redone, and he will obtain quotes. Sanitation = 5% increase Reflects FY 25-26 Republic Services three-year contract inflation. Recreation - o 51% increase a $6,000 Town Events at Park (Easter & Christmas) o $29,500 Town Events Downtown o $8,000 for creek riprap to protect sewer lines. e $30,000 for Park Sign e $70,000 for Pickleball Courts Manager Koser presented quotes for constructing four pickleball courts on the Rose Property at Yadkinville Park. Mathis Paving provided a quote of $22,000 for resurfacing only. Custom Courts estimated $55,000 to construct just two courts, while WRF Paving offered an estimate of$60.000 for the construction ofall four courts. The Board requested that an architect design a master plan for the property. Hinshaw Gardens = o 0% increase Non-Departmental - 2% decrease 6r retirees receive $450-$600 a month for health insurance stipend. Bank fees up, and Credit Card fees down Special Appropriations - o 14% increase o Yadkin County Public Library - $5,000 o YMCA - $42,500 o Yadkin Arts Council - $15,000 Hands ofHope - $10,000 YVEDDI Senior Center - $5,000 Friends of Downtown Yadkinville - $10,000 The Board discussed the special appropriation for the Yadkin YMCA. Manager Koser noted that he included the $40,000 the Town agreed to provide onçe the YMCA breaks ground on their expansion project. Commissioner Monta Davis-Oliver inquired about the additional $2,500 that was requested. It was discussed that this extra $2,500 should be designated for specific programs. Manager Koser stated that the Yadkin Arts Council request will be fully funded by Town funds, rather than splitting the amount with the TDA, due to their conservative budget. He recommends allocating $15,000. General Fund Estimated Revenue = 2% increase due to increased property tax values and local option sales tax revenues. Total Revenue Projections are $3,707,250 plus $500,493 from Fund Balance Allocation. o Tax Collections will be budgeted at a 97.5% collection rate for Fiscal Year 2025-26. Vehicle Tax collections are projected to increase by $2,000 from Fiscal Year 2024-2025 Manager Koser apprised the Board that the State is attempting to legalize sweepstakes, which would increase tax revenue. Other Sources of Revenues o Interest on Investments is doing well, but is expected to decline somewhat through FY 25-26. Powell Bill funding should improve slightly. $15,000 for building and zoning permits reflects a continuation of development. $130.000 for Solid Waste Collection Fees. 2. General Fund Bottom Line: 14% increase ($508.264) from last year's proposed budget. Budget, as presented with $500,493 from Fund Balance, would be a balanced budget. No cuts for FY 2025-2026 department requests. $40,000 additional funding for YMCA expansion. $15,000 funding has been requested for Yadkin Arts Council $5,000 in funding has been requested for Yadkin County Library. $30,000 funding request from Hands of Hope. Board recommending $10,000. $4,500 funding request from YVEDDI for Senior Center. $25,000 funding request from Friends of Downtown Yadkinville. Board recommending $10,000. Budget reflects salary adjustments based on a 4% merit increase. Mr. Koser explained that he plans to pull $508,000 from General Fund Balance due to non-recurring costs this year. He recommended waiting a year to increase water rates and tax rates to see what a full year of revenue projection looks like. After more discussion about water and sewer rates, it was decided that an increase may be necessary. Manager Koser presented page 33 in his presentation, which shows the amount of water lost due to water quality flushing. He noted that it is costing the Town approximately $45,948 to operate the Yadkin County Line. The Yadkin County Water and Sewer Line Agreement expires in June 2025. Public Works Director Swaim apprised the Board that the line is set to continuously flush. The Board asked for options to improve the situation. WATER AND SEWER FUND Water/Scwer Fund Bottom Line 1% increase in revenue. 1% increase in expenditure. W/S Fund is balanced at $2,768,066 with the following included: $39,336 Fund Balance Allocation Manhole rehab & relining $125,000 New utility locator device $7,500 Mackie Outfall Repair $8.500 Life Station access gravel $4,500 Sewer Plant: Riprap/gravel effluent line road - $3,000; Replace CI2 Smart Valve - $5.000; Replace CI2 pressure reducing valve - $1,500; Water Plant: Replace decant blower building roof $10,000; Replace filter turbidimeters $55,000; Replace filter #3 Media - $80,000; Replace benchtop turbidimeter $6,500 Mayor Norman inquired about raising water rates by 5% due to an increase in expenditures. After some discussion, Manager Koser agreed to research how much the increase would affect the Water and Sewer revenues and expenditures. Manager Koser presented the proposed fee schedule for 2025-2026. He noted that he wants to review water and sewer tap fees. Manager Koser informed the Board that he received an offer to save $6,000 on Viper radios if they are purchased before June. He mentioned that the amount could be taken from the General Fund, or the Board could choose to wait until after July Ist and pay the full price. The Board discussed the possibility ofa grant from Yadkin County and agreed to gather more information on the matter. Manager Koser gave an overview of a new merit evaluation, which acknowledges above and beyond achievements, such as certifications. The Board agreed to review and come back with remarks. 4. ADJOURNMENT Commissioner Monta Davis-Oliver moved that the meeting adjourn. Commissioner Chris Matthews seconded the motion, and the motion was approved unanimously. The meeting adjourned al approximalely 2:11 p.m. Vote 4/0 aC / 3 Eddie Norman, Mayor Qup Palhs Alex Potts, Town Clerk