05202014M
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,
May 20, 2014, at 8:30 a.m. in the Dunn Municipal Building. Present was Mayor Oscar N. Harris,
Mayor Pro Tem Buddy Maness, Council Members Frank McLean, Billy Tart and Billy Barfield.
Also present was City Manager Ronnie Autry, Assistant City Manager Steven Neuschafer, Chief
Building Inspector Steven King, Recreation Director Perry Hudson, Police Chief Jimmy Pope, Public
Works Director Billy Addison, Public Utilities Director Dean Gaster, Human Resources Director
Anne Thompson, Librarian Mike Williams, City Attorney P. Tilghman Pope, and City Clerk Debra
West.
Absent: Council Members Turnage and Robinson.
INVOCATION
Mayor Harris opened the meeting at 8:30 am and gave the invocation. Afterwards the Pledge of Allegiance
was repeated.
AGENDA ADJUSTMENT AND APPROVAL
Motion by Mayor Pro Tern Maness and seconded by Council Member Tart to adopt the May 20, 2014
meeting agenda with changes, if any, as listed below.
Items Added to the Agenda:
• none
Agenda Items Removed:
• none
Motion unanimously approved.
ITEMS FOR DISCUSSION AND /OR DECISION
Open Issues from Prior Work Session
Manager Autry reported that one open issue was the health insurance. The current BCBS plan was
projected to increase by 17 %. The broker recommended United Health Care (UHC) with an increase of
7.73% reduced to 6.43% with an implemented wellness program administered by UHC. The savings in
funds ($30,000) from his original 10% insurance increase projection will be used toward paying interest
payments for the Harnett Training Campus (HTC) project.
Harnett Training School Apartments Project will accrue interest during construction. $30,000 has been
placed in debt service for HTC.
The only monies available in the Contingency Fund is the proposed 2.25% COLA. Town of Angier is
proposing 2.5 %, Erwin is proposing 1 %, Harnett County, Coats and Lillington are not proposing a COLA
due to a major increase in their health insurance. It was discussed that provided the City receives the
revenues projected and based upon budget projections and results, the 2.25% COLA will be passed on to
the employees mid -year retroactive to July 1, 2014 and subject to Council approval.
Manager Autry reported that he met with the County Manager with regard to the dispatch/communications
transfer. The City has fully budgeted telecommunications services until January 1, 2015. If the County
does not accept the transfer of telecommunications, then the City would have to amend the budget to fund
the remainder of the year.
Manager Autry reported that monthly sales tax distribution has been down since the latter part of last year.
Manager Autry reported that Fire Inspection fees are in line with the County fees. These fees will never be
self - supporting. Since fire inspection invoices have been re- submitted, $19,000 has been received. He
would estimate that the City collects 40% of the City's annual $55,000 paid to Dunn Emergency Services
to perform this inspection. It was discussed if fire inspection fees should be adjusted.
In comparing the bulk water user rates, the proposed increase from $1.90 /per 1,000 gallons to $2.00 /per
1,000 gallons is compared to $2.14 /per 1,000 gallons charged by surrounding competitors. He
recommends leaving the rate as proposed to avoid losing bulk customers to other competitors. Letters have
been sent to surrounding municipalities and he did receive a few calls concerned with the $2.00 charge. He
recommends the small increase to remain with residential users to maintain the bulk user at a rate to retain
those clients. Discussion was held that bulk rates charged by the County vary depending upon if a
customer has bought into their system. Discussion was held that the Council needs to be mindful,
reasonable and competitive with the bulk rate charged. It was discussed if the City should charge Sampson
County a higher rate and not the same bulk rate charged to other users. Manager Autry explained that the
current fee schedule is set such that if a bulk user does not guarantee a minimum usage in their contract,
then they are charged at a higher rate. Discussion was held that if bulk rates are increased, then those users
may explore other avenues for water supply. Discussion was held about the possibility of setting bulk rates
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on a graduated scale, providing a better rate for more usage, to evaluate the current bulk water contracts
and bring a recommendation back to the Council.
FY 2014 -2015 General Fund Budget Recap
Total Revenues - $8,522,400.00
Total Expenses - $8,522,400.00
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 30t°.
• Dr. P.K. Vyas Recreation Center contributions /pledges have been collected — The five (5) year
period for collection has ended.
Expenditures: General
• Reserve for contingency — 2.25% COLA = $93,718
• Employee Brian Lockamy moved from Public Works water /sewer division to the Inspection
Department (allocation of 65% General Fund and 35% Water /Sewer)
• Temporary Position added to Inspection Department
• Health insurance cost increase of 6.43%
• Tipping fees — Increase cost of $20,000 (Hamett County will not be issuing this credit).
• Downtown Revitalization - $181,500 ($55,000 paid by DDDC /Tourism).
• PAL (501 (c) (3) Contribution) - $125,000 — This is the same contribution amount made to PAL in
previous years. Discussion that the City also funds PAL Director Rowland's salary and vehicle.
• Capital items have been addressed and a list of items proposed for funding is as follows:
Police cars $160,000 ($28,000 USDA Grant -
$132,000 USDA Loan)
Inspection Track $ 24,600
Powell Bill Fund Balance - $32,500 (Gates/Signals at W. Pearsall Street crossing) — discussion
was held that if Powell Bill Funds change the formula to lane miles, then this will affect the
allocation received each year.
Water /Sewer Fund Budget Recap
• Total Revenues - $5,022,500
• Total Expenditures - $5,022,500
• Water and sewer rate increase proposed to cover loss revenues from Sampson County (this equates
to $242,000 in loss revenues projected at a 50% reduction — this is due to Sampson County going
to a well system). Discussion was held to re- evaluate bulk rates to reduce the residential rates.
Manager Autry explained that the most cost is in sewer (sewer does not pay for itself) and the City
is deficit in what is charged for sewer. Bulk rate monies help subsidize wastewater and if the City
loses bulk customers, they will still have excessive expenses in wastewater. Major municipalities
all over the state are drastically increasing their sewer rates beyond the water cost. It was
discussed that the Manager and Public Utilities Director Gaster gather data for the Council,
comparing Dunn's water and sewer rates to other municipalities of like size to consider for future
budget years.
• 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
• Reserve for Contingency— (2.25% COLA - $27,970 included) - $50,673
• Health insurance cost increase of 6.43%
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
15 000 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
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$138,500
$238,50
Debt Service
The Council was presented a schedule of debt service through FY 2021 -2022.
Tyler Park Phase 2
Another application will be submitted to the Local Government Commission (LGC) to combine Phase I
and Phase 2 per the recommendation of LGC with First Citizens Bank since they already have the lien on
Phase I. This will allow for one (1) debt payment for Phase I and 2. It is projected to close on this
recombined loan in July, 2014 and to begin construction of Phase 2 during the first week of August, 2014.
Discussion was held that the City has not received a Naming Rights Pledge to pay for the proposed two
tennis courts. Manager Autry advised that to add a third court would cost an additional $64,000 plus
$5000410,000 to move existing power lines and poles. Discussion was held if the property beside Kim's
could be sold to fund the extra tennis court at Tyler Park.
Discussion was held that the parking lot around Kim's Barbecue is owned by the City. This is where the
City storm drain lies. Approximately fifty (50') of road frontage on Broad Street belongs to the City. It
was discussed that the Council would like to receive information as it relates to the footage owned by the
City.
Republic Waste Collection
Republic Waste Services is proposing to go to a four (4) day a week pick -up which will have little effect on
current pick up days. Republic Waste will be responsible for notifying customers of the change in pick up
schedule. Discussion was held for the Manager to inquire if Republic Waste can pick up recyclables on the
same day as regular trash is picked up.
Proposed Fee Schedule for
FY 14 -15
The proposed fee schedule was presented to the Council with the same changes as proposed at the April 22,
2014 Budget Work Session.
With no further business to discuss, a motion was made by Mayor Pro Tern Maness and seconded by
Council Member Barfield to adjourn the meeting at 10:12 am. Motion unanimously approved.
Attest:
CITY OF40
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Debra G. West
City Clerk
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O car N. Harris
Mayor