Mayor Town Administrator Russ Touchberry Scott Slatton Council Members: Town Clerk Aaron Brown Beth Messervy Tiffany Johnson-Wilson Richard G. Waring, IV Town. Attorney Kima Garten G.W. Parker Bob Jackson Matt Halter Town ofSummerville SPECIAL CALLED COUNCIL MEETING BUDGET WORKSHOP April 22, 2025 ATTENDANCE Present: Mayor Russ Touchberry, Councilmembers Kima Garten, Bob Jackson, Tiffany Johnson-Wilson, Matt Halter, Aaron Brown, and Richard G. Waring, IV. Also in attendance were Town Administrator Scott Slatton, Town Attorney GW Parker, Town Clerk Beth Messervy, and select staff. A quorum was met. Public and press were duly notified and present. The meeting took plaçe in the training room of the Town Hall Annex building at 200 South Main Street. CALL TO ORDER Mayor Touchberry called the meeting to order at 9:00am. RECAP OF PREVIOUS BUDGET MEETING Town Administrator Scott Slatton reviewed a wrap-up oft the previous budget meeting in March, stating that the Council was left with a $4 million deficit if Council wanted to commit to the priorities that they decided on at the February budget workshop. REVENUE SUMMARY Rhonda Moore, the Finance Director, presented slides regarding changing the percentage ofLocal Option Sales Tax that is kept by the Town as revenue. She also increased the business license revenue and removed the sale of assets. She also explained that growth inside the TIF district does not help contribute to the general fund. Ms. Moore and Mr. Slatton reviewed other aspects of growth in the Town. LOCAL OPTION SALES TAX CALCULATION Ms. Moore suggested that the Town phase-in implementation with 50% of the difference between the current 71% kept and the 100% that could be retained in Local Option Sales Tax. Ms. Moore explained that the property tax credit portion ofLOST goes back to the taxpayers and the municipal revenue portion ofLOST is what the Town is only keeping 71% of currently. Some discussion followed regarding phasing in the 29% ofLOST to be Town revenue. Mr. Jackson made a motion, seconded by Mr. Waring, to start phasing in Local Option Sales Tax at 50% ofthe 71% already retained, as proposed by staff. Ms. Johnson-Wilson made a motion to amend Mr. Jackson's motion to change 50% to 10% each year. There being no second to Ms. Johnson-Wilson' s motion, the motion died. The original motion passed 6-1, with Ms. Johnson-Wilson voting in opposition. EXPENDITURES Special Town Council Meeting Minutes April 22, 2025 Page 2 Ms. Moore explained that she got rid of some of the expenditures that were shown to Council at the previous budget workshop, including eliminating communications positions for vacancies that already exist, and she delayed the additions of new employees until January 2026. Mr. Slatton stated that he has directed staff with vacancies to fill the empty positions first before hiring for new positions. Some discussion followed regarding increasing pay for current employees. Ms. Moore explained that the budget includes a 3% cost of1 living adjustment across the board for all employees. Mr. Waring asked that a placeholder be put on the Finance Committee in October to bring up employee incentives after the property tax bills have gone out. Ms. Johnson-Wilson requested that a placeholder be put on next February's Finance meeting to take another look at millage. SUMMARY Ms. Moore showed that the revenue for this budget is estimated to be $52,406,309, and the "bare bones" expenditures to be $52,330,378. PROPOSED CAPITAL FUND Ms. Moore suggested that Council take $2 million from fund balance to initiate a new Capital Fund, with a $500,000 annual appropriation and sales of assets contributing to the fund throughout the year. Ms. Johnson-Wilson made a motion, seconded by Ms. Garten, to increase the amount of money dedicated to sidewalks to $500,000. Some discussion followed. The motion carried 6-1, with Mr. Jackson voting in opposition. Ms. Garten made a motion, seconded by Mr. Halter, to initiate the Capital Fund plan as presented by Council with an extra $100,000 added to sidewalks. Ms. Johnson-Wilson made a motion, seconded by Mr. Brown, to make an amendment to include an additional $100,000 for a parks and recreation capital fund. Some discussion followed, and Ms. Johnson-Wilson's amendment failed with a 2-5 vote; Ms. Johnson-Wilson and Mr. Brown voted for the amendment. The original motion carried unanimously. LOCAL HOSPITALITY AND ACCOMMODATIONS TAX FUNDS & LOCAL ACCOMMODATIONS TAX REVENUE Ms. Moore stated that there is not a lot of growth in local hospitality revenue right now. She explained that the capital requests from parks and recreation from the HTAX fund is substantial at $742,000. Ms. Moore stated that a one-time transfer from fund balance could cover the deficit of $300,000 in capital requests from parks and recreation. STORMWATER AND SANITATION FUNDS Ms. Moore stated that the Town is barely breaking even in the sanitation fund, because what the Town pays Carolina Waste is increasing year by year. Ms. Johnson-Wilson made a motion, seconded by Ms. Garten, to authorize staff to put out bids for waste disposal sO the Council could make a decision for the future. The motion carried unanimously. CAPITAL FUND Ms. Moore stated that parks and recreation has about $1.3 million in capital requests, but that these requests can be funded by HTAX, ATAX, and impact fees. Ms. Moore highlighted the other capital requests from different departments. PROJECT UPDATES Mr. Slatton stated that the General Assembly decided to not earmark any funds for municipalities or counties in this year's budget, sO the Town staff will have to figure out how to fund the rest ofthe Main Street resiliency project. Staff is almost done with picking a CMAR for the Public Safety Complex; staff will be meeting with Council to review financing options for the complex. Special Town Council Meeting Minutes April 22, 2025 Page 3 PAYOUT OF UNUSED VACATION AND RETIREE INSURANCE It was reported that last year's initial run at payout of unused vacation cost around $100,000 with 46 employees qualifying and participating in the option. Mr. Slatton stated that it will take some time to recalculate the numbers for offering retiree insurance because ofthe Town's switch to a new brokerage. Ms. Johnson-Wilson made a motion, seconded by Mr. Halter, to give a 5% salary increase for police officers ifthey live within Town limits. Mayor Touchberry stated that there would have to be much more research on this idea and that streets, stormwater, and parks and recreation might see this as a "morale killer" since they are not included. Ms. Johnson-Wilson withdrew her motion. GETTING THE HOUSE IN ORDER Ms. Moore presented a checklist of things for Council and staff to do to make decisions and wrap up the FY26 budget. ADJOURN: Mr. Jackson made a motion, seconded by Mr. Waring, to adjourn the meeting. There being no further business, the Mayor adjourned the meeting at 12:03pm on a unanimous vote of Council. Respectfully Submitted, APPROVED: AT9 TAAMUENS Beth Messervy, Town Clerk Russ Touchberry, Mayor