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0422201430 MINUTES CITY OF DUNN DUNN, NORTH CAROLINA The City Council of the City of Dunn held a Special Call Meeting/Budget Work Session on Tuesday, April 22, 2014, at 8:30 a.m. in the Dunn Municipal Building. Present was Mayor Pro Tem Buddy Maness, Council Members Carnell Robinson, Frank McLean, Billy Tart, Chuck Turnage and Billy Barfield. Also present was City Manager Ronnie Autry, Assistant City Manager Steven Neuschafer, Chief Building Inspector Steven King, Planning Director Samantha Wullenwaber, Recreation Director Perry Hudson, Police Chief Jimmy Pope, PAL Director Rodney Rowland, Public Works Director Billy Addison, Public Utilities Director Dean Gaster, Human Resources Director Anne Thompson, Librarian Mike Williams, City Attorney P. Tilghman Pope, City Clerk Debra West and Daily Record Reporter Keilah Goff. Absent: Mayor Harris (due to the sickness of his wife, Mrs. Jean Harris). INVOCATION Mayor Pro Tern Maness opened the meeting at 8:30 am and asked Council Member Tumage to give the invocation. Afterwards the Pledge of Allegiance was repeated. AGENDA ADJUSTMENT AND APPROVAL Motion by Council Member Barfield and seconded by Council Member McLean to adopt the April 22, 2014 meeting agenda with changes, if any, as listed below. Items Added to the Agenda: • Closed Session (contract negotiation in order to protect the attorney client privilege) Agenda Items Removed: • none Motion unanimously approved. Closed Session 8:35 am - Motion by Council Member Barfield and seconded by Council Member McLean to enter closed session in accordance with N.C. General Statute 143 - 318.11 to consult with the City Attorney — contract negotiation in order to protect the attorney client privilege. Motion unanimously approved. 9:13 am — closed session ended. Motion by Council Member Barfield and seconded by Council Member Tart to approve the closed session minutes as recorded by City Attorney Pope. Motion unanimously approved. ITEMS FOR DISCUSSION AND /OR DECISION Status Report for Current Budget (FY 2013 -14) Manager Autry gave the following status report for the current budget year (FY 2013 -14): • Roof Refinancing 2010 — proposed to pay off $15,000 prior to June 30`6 to remove from FY14 -15 debt service. • Cemetery Committee proposal to split duties of mower personnel. There is a slope mower that will help on the I -95 Interchanges and Hwy. 421 medians and it is proposed to purchase this type of equipment to focus on these public areas in order to keep the Cemetery crews dedicated to maintaining only the cemeteries. Purchase price is approximately $35,000 and could be purchased with Enterprise Fund monies. This purchase request may be forthcoming to the Council before June 30th FY 2014 -2015 Budget Total Revenues - $8,522,400.00 Total Expenses - $8,522,400.00 Manager Autry summarized the highlights of the proposed budget. Revenues: General • Property tax revenues are projected to increase by 1% due to expanded property tax valuations. • Sales tax remains flat. • All PAL grants eliminated - 21" Century Grant ends June 30 6. • Dr, P.K. Vyas Recreation Center contributions /pledges have been collected — The five (5) year period for collection has ended. 31 Council Member Robinson stated that the PAL program is valuable and even though it is being transferred to a non - profit, they are in a start-up phase. He expressed concern about long -term employees being retained for PAL. Manager Autry stated that with new debt service coming on, the City is still allocating $125,000 to the PAL Program as in the past years. Also the City is still funding PAL Director Rowland's salary. Further discussion was held about grants being the source to fund the PAL Program though -out the years and the City's contribution of $125,000 is very significant in addition to the investment of renovating the PAL buildings. It will not be funded and maintained at the level that the City has supported it in the past. Other organizations and the community will need to embrace this program to support PAL as they transition to a 501 (c) (3). A proposal was presented to the Council from PAL as it relates to maintaining the program at different levels. PAL Director Rowland stated that with their temporary relocation, it has attracted children from other areas of town. Expenditures: General • Reserve for contingency— 2.25% COLA — Delay to Mid -Year $92,704.00 • Employee Brian Lockamy moved from Public Works water /sewer division to the Inspection Department (allocation of 65% General Fund and 35% Water /Sewer) • New Position/Temporary Position added to Inspection Department — discussion to propose either a full -time position or continue with a part -time position. Rooms to Go permit fees will pay for an inspector for RTG — discussion with the County to inspect RTG on a contract basis or to hire a consultant inspection firm. Discussion was held to hire a full -time code enforcement officer at a lower salary instead of paying a licensed building inspector at a higher salary to do code enforcement. • Retirement contribution for state retirement will remain at 7.07 %. Council recessed at 10:10 am and reconvened at 10:25 pm. Council Member Billy Tart exited the meeting at 10.10 am to attend funeral services and returned at 10:35 am. • Health insurance cost increased by 10 %. Current plan is $3500 deductible with employee paying $1,000. Co- insurance is $2,000 out of pocket and the City pays $5,000. An employee could pay $3000 out -of- pocket for a major health issue. Most surrounding towns' premiums are less than Dunn's. The City of Dunn is currently paying $900,000 for employee health insurance. • Tipping fees — Increase cost of $20,000 (Harnett County will not be issuing this credit). • Downtown Revitalization - $181,500 ($55,000 paid by DDDC/Tourism). • PAL Contribution - $125,000 • Capital items have been addressed and a list of items proposed for funding is as follows: Police cars Inspection Truck $160,000 ($28,000 USDA Grant - $132,000 USDA Loan) $ 24,600 $184,600.0 Manager Autry advised that equipment at Public Works is aging out. It was discussed to assemble a list of equipment that will need replacing in the coming years in order to plan for replacement. Powell Bill Fund Balance - $32,500 (Gates /Signals) — Attorney Pope is in the process of reviewing the agreement received from NCDOT Rail Division. Discussion was held about allocating monies for resurfacing only if savings are realized from savings by moving Communications to the County; however, this issue has not been resolved at the present time. Discussion was held that collection for Fire Inspection fees was not followed -up by the City but that problem has now been corrected and the City is billing for both current and past due fire inspection fees. Discussion was held about the debt service increasing in future budget years. Manager Autry summarized the debt service. Discussion was held that revenues are projected to be received from the Hamett Training School Campus Project toward the debt service payment for this project and revenues are projected to increase from future property revaluations. Manager Autry stated that the Council needs to be mindful that the debt service will be increasing over the next few years. Revenues: Water /Sewer • Total Revenues - $5,022,500 • Total Expenditures - $5,022,500 • Water and sewer rate increase proposed to cover loss revenues from Sampson County (potential $200,000 4250,000 loss from Sampson County). Discussion was held to recoup this loss by increasing the bulk water rates instead of increasing rates of the residential users. • Water rates per 1,000 gallons increased from $3.70 to $3.89. • Sewer rates increased to $9.08 base rate and from $3.46 to $3.63 per 1,000 gallons • Contingency - $44,458.00 — includes 2.25% COLA 32 • Retirement contribution for State Retirement will remain at 797% • Health insurance cost increase 10 %. Expenditures: Water • Capital items have been addressed and a list of items proposed for funding is as follows: 30- 810 -7403 - Water Department. $50,000 AMR Startup in Grove Park & Lakeshore Subdivisions I S 000 Utilities locator $65,000 30-811-7400- Water Plant: $35,000 Clearwell rehab & painting at Water Plant 30- 821 -7400 - Wastewater Plant $115,000 Clarifier Rebuild 10,000 8 inch super -T Recirculation Pump 3,500 Sludge Recirculation Pump Building 10.000 RAS/WAS Flow Meters $138,500 $238,50 Proposed Fee Schedule for FY 14 -15 The proposed fee schedule was presented to the Council. Manager Autry advised that privilege license fees may be changed next year. Maximum privilege license fee of $100.00 is being proposed by the Legislature and if approved, it could be implemented July, 2015. Discussion was held to evaluate the fire inspection fees and how these fees compare to the $55,000 the City pays Dunn Emergency Services to perform fire inspections. Also discussion was held to evaluate the bulk water user rate fees compared to the proposed residential rate increase. With no further business to discuss, a motion was made by Council Member Tart and seconded by Council Member Tumage to adjourn the meeting at 12:07 pm. Motion unanimously approved. Attest: %%� � CLA 'd W De 'bra G. West City Clerk E. Frank "Buddy" M ess, III C1TY0,,, Mayor Pro Tern F O GORPpRgT'. 2 2 SEAL �9Ty CARO\-\�P``;