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Home My WebLink AboutAgenda 01-27-2026 RegularCITY OF .. DUNN ® NORTH CAROLING Gtl �C&A" ec X1 su CITY COUNCIL REGULAR MEETING 6:30pm, Tuesday, January 27, 2026 Dunn Municipal Building 401 East Broad Street Dunn, North Carolina 28334 -AGENDA- CERTIFICATION OF QUORUM & CALL TO ORDER —William P. Elmore, Jr., Mayor INVOCATION - Reverend Cameron "Cam" Thomas — First Presbyterian Church PLEDGE OF ALLEGIANCE — Wesley Sills, Council Member CONSIDERATION & APPROVAL OF THE AGENDA PRESENTATION 1. City of Dunn FY25 Financial Audit Presentation 2. Recognition of Butch Halpin — Hometown Hero Award 3. Recognition of Michael Godfrey— Officer of the Year Award PROCLAMATION 4. 2026 Black History Month Proclamation PUBLIC COMMENT PERIOD The purpose of the public comment period is to allow an opportunity for the public to address the City Council and is not intended to require the City Council to answer questions or respond to comments. Per the City Council's Public Comment Policy, adopted August 4, 2005, anyone desiring to address the Council must register on a sign-up sheet prior to the meeting being called to order. Comments are limited to three minutes per speaker and the total public comment portion of the meeting is limited to no more than 30 minutes. CONSENTAGENDA Consent Agenda items are considered and approved by a single motion and vote. Any member of the City Council may request an item be removed, without a motion or a vote, from the Consent Agenda for separate consideration. If an item is removed from the Consent Agenda, that item will be placed under the Items for Discussion & Possible Action section of the agenda. 5. Approval of January 13, 2026 Work Session Minutes 6. Budget Amendments — Various Operating Accounts ITEMS FOR DISCUSSION & POSSIBLE ACTION 7. Rezoning Application (RZ-25-03) —Vann Lane a. Public Hearing b. Decision Page 1 of 2 CITE` OF .. DUNN NORTH CAROLINA XA,?,,e, c&owA4 b jiArl 8. Rezoning Application (RZ-25-04) — Dogwood Knoll Street & Fairground Road a. Public Hearing b. Decision 9. Ordinance to Extend City Limits— Voluntary Annexation Petition (ANX-07-25) — Vann Lane (Ste[ #3) a. Public Hearing b. Decision 10. Capital Project Ordinance Amendment II (Close Out) — Tracy Lane Water and Sewer Extension Project 11. Pearsall Street Project— NEDEQ Additional Funding REPORTS & UPDATES 12. City Manager's Report 13. Financial Report 14. Departmental Reports & Project Updates a. Code Enforcement b. Probation Office c. Right -of -Way Maintenance d. Other Reports & Updates ANNOUNCEMENTS IMPORTANT INFORMATION CLOSED SESSION If called, the motion to enter closed session must cite the North Carolina General Statute that authorizes the closed session. ADJOURNMENT The City of Dunn is an equal opportunity provider and employer. Page 2 of 2 xl ere- c&,6Vmxl Regular Meeting, January 27, 2026 Agenda Item(s): City of Dunn FY25 Financial Audit Presentation Presenter(s): Cary McNallan, Finance Director Responsible Staff: Cary McNallan, Finance Director Action Item: Yes Attachment(s): FY25 Audit Transmittal Letter Independent Auditor's Report Letter Management's Discussion and Analysis Background The firm of Thompson Price Scott Adams & Company (TPSA) will present the FY 2024-25 audit. The Audit Manager, Austin Eubanks, will provide the presentation. This is the third year of a three-year commitment with the firm Thompson Price Scott Adams & Company. The company is based in Wilmington, NC. Attached for your review are the following: • FY25 Audit Transmittal Letter • Independent Auditor's Report letter • Management's Discussion and Analysis The entire 2025 Annual Comprehensive Financial Report (ACFR) can be found on the City's website under the Finance Department - Reports at www.cityofdunn.org/finance. Should you have any questions please contact the Finance Director, Cary McNallan. Staff Recommendation(s) Accept the FY25 audit report. Budget Impact There is no budget impact. Suggested Motion(s) Motion to accept the FY25 Audit Report as presented. Page 1 of 1 Mayor William P. Elmore, Jr. ITY OF Mayor Pro Tem April Gaulden Vc Council Members DUNN J. Wesley Sills NORTH C A R O L I N A Raquel McNeil Billy Tart 401 E Broad St . PO Box 1065 . Dunn, North Carolina 28335 Alan Hargis (910) 230-3500 - CityofDunn.org Dr. David L Bradham City Manager Justin Hembree November 24, 2025 To the Honorable Mayor, Members of the City Council, and Citizens of the City of Dunn: The Annual Comprehensive Financial Report (ACFR) of the City of Dunn for the fiscal year ending June 30, 2025, has been submitted by the City's Finance Department. It is the comprehensive publication of the City's financial position on June 30, 2025, and the results of operations for the fiscal year. The financial statements must be presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. This report is published to fulfill that requirement for the fiscal year ending June 30, 2025, and to provide complete and further accountability to citizens and other interested parties by providing a comprehensive report in lieu of the minimum basic financial statement requirements. Responsibility for both the accuracy of the presented data and the completeness and the fairness of the presentation, including all disclosures, rests with the City's management. We believe the enclosed data and presentation are accurate in all material respects and are reported in a manner that fairly represents the financial position and the results of operations of the City's funds over the last fiscal year. The City's financial statements have been audited by Thompson, Price, Scott, Adams & Company, P.A., a firm of licensed certified public accountants based in Wilmington, NC. The independent auditor concluded that the City's financial statements, for the fiscal year ended June 30, 2025, are fairly presented in accordance with accounting principles generally accepted in the United States of America. The independent auditor's report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Dunn's MD&A can be found immediately following the report of the independent auditors. 'Mere communi� h!�ins! Financial highlights The City's general fund posted a net change in fiend balance of ($775,240) while the total governmental funds, which include the general fund, special revenue fiends, and governmental capital projects, posted a net change in fund balance of $626,157. The general fund's decrease in fund balance can be attributable to a $1,373,926 debt payment for the 2014 Harnett Training School and was funded with reserve funds. This loan had a balloon payment due in August 2025, and staff recommended that the loan be paid off instead of being refinanced. The timing of capital project grant revenues and expenditures between fiscal years can have a significant impact on the governmental funds net change in fund balance each year. As of 6/30/25 the general fund's combined assigned and unassigned fund balance totaled $3,705,704 which represented 25.8% of the total FY25 general fund expenditures of $14,377,071. The same figures as of 6/30/24 were $4,591,328, 36.3%, and $12,665,273, respectively. For FY25, the Water and Sewer Operating Fund posted a net change in fund balance of ($1,544,472). Much of this decrease was due to major water and sewer infrastructure repairs and operating transfers to capital projects. When combined with the water and sewer capital projects, the overall net change in fiend balance is reported at $10.486.235. This increase is primarily due to the grant -funded water and sewer capital projects. The total Water and Sewer Fund unrestricted net position totaled $21,120,492 as of June 30, 2025, compared to $6.718,358 at the end of June 30, 2024. The increase is primarily related to the capitalization of infrastructure projects. For FY25, the Stormwater Operating Fund posted a net change in fund balance of $238,039. When combined with the stormwater capital projects, the overall net change in fund balance is reported at $1,198,615. This increase is primarily due to the grant -funded stormwater capital projects and a transfer from the General Fund. The total Stormwater Fund unrestricted net position totaled $259,790 as of June 30, 2025, compared to ($73,378) at the end of June 30, 2024. The City of Dunn is financially accountable for a legally separate ABC Board, which is reported separately as a discrete component unit within the City of Dunn's financial statements. Additional information on this legally separate entity can be found in Note 1 in the notes to the financial statements. Economic Condition and Outlook The City of Dunn's favorable economic environment and local indicators point to continued stability. Major industries with headquarters or divisions located within the City's boundaries or in proximity include warehouse distribution facility, petroleum product distribution, truck body manufacturers, regional health care facility, and several financial institutions. Tourism continues to have a major impact on the local economy. Dunn is located on the I-95 north/south corridor, and the North Carolina Department of Transportation is undergoing a major widening project to improve this roadway throughout North Carolina. In the immediate area there are 12 hotels which offer over 700 rooms. In fiscal year 2025, hotel/motel tax revenues were $597,927 in the Dunn area. The sales tax revenue for the city continues to remain strong and the overall unemployment rate has remained lower than national and state averages. Long-term Financial Planning The City has continued to wisely manage its cash reserves and debt obligations over the last several years. The City reduced its long-term debt in FY25 by $1,456,600 and reported a percent of Fund Balance to total debt ratio of 56.0%, compared to 74.3% for FY24. The City's Water and Sewer Fund continues its goal of completing capital projects required by the State's special order by consent (SOC) for improvements of the city's sewer system. Many of these projects have state and federal grant funding to help defray some of the construction costs and the remainder of the costs are financed with long-term debt instruments. The City continues to monitor the increasing requirement for debt service payments and the need for future increases in utility rates. The Water and Sewer Fund total long-term debt increased in FY25 by $16.6M and reported a percentage of unrestricted net position to total debt ratio of 139.5%, compared to 197.7% for FY24. Any future projects would be funded through either grant applications or low interest borrowing. The tax base of the city is slowly growing but may not be enough to cover increasing governmental operating costs. Further analysis of this will be made during the upcoming budget process. Financial Information Budget Control: The annual budget serves as the foundation for the City of Dunn's financial planning and control. All departments of the City of Dunn are required to submit requests for appropriation to the City Manager on or before March 151h each year. The City Manager and the Finance Director use these requests as the starting point for developing a proposed budget. The City Manager then presents this proposed budget to the council for review prior to June 1'. The council is required to hold a public hearing on the proposed budget and to adopt a final budget no later than June 301h, which is the end of the City of Dunn's fiscal year. The budget is prepared by funds, function (e.g., public safety), and department, (e.g., police). Internal Control: To provide a reasonable basis for making these representations, management of the City of Dunn has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Dunn's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City of Dunn's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. Other Information: Independent Audit: The General Statutes of North Carolina require an annual independent financial audit of all local government units in the State. The City of Dunn's financial statements have been audited by Thompson, Price, Scott, Adams & Company, P.A., which is a firm of licensed certified public accountants. The firm has examined the financial records of the City and their opinion has been included in this report. Their examination was conducted in accordance with generally accepted auditing standards and, accordingly, included tests of the accounting records and other auditing procedures, as they considered necessary in certain circumstances. The auditor's report on the basic financial statements, both the combining and individual fund statements and schedules, is included in the financial section of this report. As a recipient of federal and state assistance programs, the City is responsible for ensuring that adequate internal controls are in place to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is subject to periodic evaluation by management. For the federal government, actual expenses determine the need for a Single Audit. For the fiscal year ending June 30, 2025, four single audits were required. As part of the City's single audit, tests are made to determine the adequacy of the internal control structure, including a portion related to federal and state financial assistance programs, as well as to determine the City has complied with applicable laws and regulations. Acknowledgements: The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the finance department. The preparation of this report was also made possible with the assistance of Thompson, Price, Scott, Adams & Company, P.A. We would like to express our appreciation to all City departments who assisted and contributed to the preparation of this report. Credit also must be given to the mayor and the governing council for their continued support for maintaining the highest standards of professionalism in the management of the City of Dunn's finances. Respectfully submitted, pstin Hembree City Manager Cary Nallan Finance Director Thompson, Price, Scott, Adams & Co., P.A. 4024 Oleander Drive Suite 103 Wilmington, North Carolina 28403 Telephone (910) 791-4872 Fax (910) 239-8294 Independent Auditor's Report To the Honorable Mayor and Members of the City Council Dunn, North Carolina Report on the Audit of Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business -type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Dunn, North Carolina as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise City of Dunn's basic financial statements as listed in the table of contents. In our opinion, based upon our audit and the report of the auditors, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Dunn as of June 30, 2025, and the respective changes in financial position, and cash flows thereof and the respective budgetary comparison for the General Fund, for the year then ended in accordance with accounting principles generally accepted in the United States of America. We did not audit the financial statements of the City of Dunn's ABC Board, which represent 100 percent, 100 percent, and 100 percent of the assets, net position, and revenues, respectively, of the discretely presented component unit as of June 30, 2025, and the respective changes in financial position, and where applicable, cash flows thereof for the year then ended. Those statements were audited by other auditors whose report thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for the City of Dunn's ABC board, is based solely on the report of the other auditors. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GARS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Dunn and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient Members American Institute of CPAs - N.C. Association of CPAs - AICPA's Private Companies Practice Section and appropriate to provide a basis for our audit opinions. The financial statements of City of Dunn's ABC Board were not audited in accordance with Governmental Auditing Standards. Responsibilities of Management for the Audit of the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raises substantial doubt about the City of Dunn's ability to continue as a going concern for the twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free of material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Governmental Auditing Standards will always detect material statement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Governmental Auditing Standards we • exercised professional judgement and maintained professional skepticism throughout the audit. • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsible to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of Dunn's internal control. Accordingly, no such opinion is expressed. • evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Dunn's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, and the Other Post Employment Benefit and Law Enforcement Officers' Special Separation Allowance Schedules of Funding Progress and Employer Contributions, and the Local Government Employees' Retirement System Schedules of the Proportionate Share of Net Pension Asset (Liability) and Contributions, be presented to supplement the basic financial statements. Such information is the responsibility of management, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We and the other auditors have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consist of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Dunn's basic financial statements. The combining and individual fund financial statements, budgetary schedules, other schedules, as well as the accompanying schedule of expenditures of federal and state awards as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the State Single Audit Implementation Act are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and other auditors. In our opinion, based on our audit, the procedures described above, and the report of other auditors the combining and individual fund financial statements, budgetary schedules, other schedules and the schedule of expenditures of federal and state awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory information and the statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists; we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report December 1, 2025, on our consideration of the City of Dunn's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of City of Dunn's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Dunn's internal control over financial reporting and compliance. mice, scan, 44w & Wilmington, North Carolina December 1, 2025 10 Management's Discussion and Analysis As management of the City of Dunn (the "City"), we offer readers of the City of Dunn's financial statements this narrative overview and analysis of the financial activities of the City of Dunn for the fiscal year ended June 30, 2025. We encourage readers to read the information presented here in conjunction with additional information that we have furnished in the City's financial statements, which follow this narrative. Financial Highlights • "The assets and deferred outflows of resources of the City of Dunn exceeded its liabilities and deferred inflows of resources at the close of the fiscal year by $66,924,878 (net position)." • The government's total net position increased from the prior year by $13,043,591 before restatement. • As of the close of the current fiscal year, the City of Dunn governmental funds reported combined ending fund balances of $10,523,696 with a net increase of $626,157 in fund balance. Approximately 33% of fund balance, or $3,468,596 is unassigned. • At the end of the current fiscal year, combined unassigned and assigned fund balance for the General Fund was $3,705,704 or 26% of total General Fund expenditures for the fiscal year. • The City's total long-term debt increased by $15,228,692 during the current fiscal year. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City of Dunn, North Carolina's basic financial statements. The City's basic financial statements consist of three components; 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements (see Figure 1). The basic financial statements present two different views of the City through the use of government - wide statements and fund financial statements. In addition to the basic financial statements, this report contains other supplemental information that will enhance the reader's understanding of the financial condition of the City of Dunn, North Carolina. Required Components of Annual Financial Report Figure 1 Management's Basic Discussion and Analysis Financial Statements Government -wide I I Fund I I Notes to the Financial Statements I I Financial Statements I I Financial Statements Summary Detail Basic Financial Statements The first two statements (Exhibits 1 and 2) in the basic financial statements are the Government -wide Financial Statements. They provide both short and long-term information about the City's financial status. The next statements (Exhibits 3 through 8) are Fund Financial Statements. These statements focus on the activities of the individual parts of the City's government. These statements provide more detail than the government -wide statements. There are three parts to the Fund Financial Statements: 1) the governmental funds statements; 2) the budgetary comparison statements; and 3) the proprietary fund statements. ilk The next section of the basic financial statements is the notes. The notes to the financial statements explain in detail some of the data contained in those statements. After the notes, supplemental information is provided to show additional details about the City's individual funds. Budgetary information required by the North Carolina General Statutes can also be found in this part of the statements. Government -Wide Financial Statements The government -wide financial statements are designed to provide the reader with a broad overview of the City's finances, similar in format to a financial statement of a private -sector business. The government -wide statements provide short and long-term information about the City's financial status as a whole. The two government -wide statements report the City's net position and how it has changed. Net position is the difference between the City's total assets and deferred outflows of resources and total liabilities and deferred inflows of resources. Measuring net position is one way to gauge the City's financial condition. The government -wide statements are divided into two categories: 1) governmental activities; and 2) business -type activities. The governmental activities include most of the City's basic services such as public safety, parks and recreation, and general administration. Property taxes and state and federal grant funds finance most of these activities. The business -type activities are those that the City charges customers to provide. These include the water, sewer, and stormwater services offered by the City of Dunn. The government -wide financial statements are on Exhibits 1 and 2 of this report. Fund Financial Statements The fund financial statements (see Figure 1) provide a more detailed look at the City's most significant activities. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Dunn, like all other governmental entities in North Carolina, uses fund accounting to ensure and reflect compliance (or non-compliance) with finance -related legal requirements, such as the General Statutes or the City's budget ordinance. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds Governmental Funds Governmental funds are used to account for those functions reported as governmental activities in the government -wide financial statements. All of the City's basic services are accounted for in governmental funds. These funds focus on how assets can readily be converted into cash flow in and out, and what monies are left at year-end that will be available for spending in the next year. Governmental funds are reported using an accounting method called modified accrual accounting that provides a short-term spending focus. As a result, the governmental fund financial statements give the reader a detailed short-term view that helps him or her determine if there are more or less financial resources available to finance the City's programs. The relationship between government activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is described in a reconciliation that is a part of the fund financial statements. The City of Dunn adopts an annual budget for its General Fund, as required by the General Statutes. The budget is a legally adopted document that incorporates input from the citizens of the City, the management of the City, and the decisions of the City Council about which services to provide and how to pay for them. It also authorizes the City to obtain funds from identified sources to finance these current period activities. The budgetary statement provided for the General Fund demonstrates how well the City complied with the budget ordinance and whether the City succeeded in providing the services as planned when the budget was adopted. The budgetary comparison statement uses the budgetary basis of accounting and is presented using the same format, language, and classifications as the legal budget document. The statement shows four columns: 1) the original budget as adopted by the Board; 2) the final budget as amended by the Board; 3) the actual resources, charges to appropriations, and ending balances in the General Fund; and 4) the difference or variance between the final budget and the actual resources and charges. Proprietary Fund City of Dunn has one kind of proprietary fund, an Enterprise Fund. The Enterprise Funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City of Dunn's enterprise funds are the water, sewer, and stormwater activity funds. These funds is the same as those functions shown in the business -type activities in the Statement of Net Position and the Statement of Activities. 12 Notes to the Financial Statements — The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements immediately follow Exhibit 8 of the audit report. Other Information — In addition to the basic financial statements and accompanying notes, this report includes certain required supplementary information concerning the City's progress in funding its obligation to provide pension benefits to its employees. Required supplementary information can be found immediately following the notes. Interdependence with other Entities - The City depends on financial resources flowing from, or associated with, both the Federal Government and the State of North Carolina. Because of this dependency, the City is subject to changes in specific flows of intergovernmental revenues based on modifications to Federal and Sate laws and Federal and State appropriations. Government -Wide Financial Analysis City of Dunn, North Carolina's Net Position Figure 2 Governmental Business -Type Activities Activities Total 2025 2024 2025 2024 2025 2024 Assets: Current and other assets $ 14,619,865 $ 14,131,384 $ 27,162,793 $ 10,394,779 $ 41,782,658 $ 24,526,163 Capital assets 17,845,391 18,020,174 59,747,737 46,159,339 77,593,128 64,179,513 Deferred outflows of resources 2,496,743 3,085,799 843,157 1,017,106 3,339,900 4,102,905 Total assets 34,961,999 35,237,357 87,753,687 57,571,224 122,715,686 92,808,581 Liabilities: Long-term liabilities outstanding 12,610,424 15,815,864 30,642,062 14,737,932 43,252,486 30,553,796 Other liabilities 3,547,432 2,203,571 4,643,448 2,150,714 8,190,880 4,354,285 Deferred inflows of resources 3,185,334 2,840,129 1,162,108 1,014,914 4,347,442 3,855,043 Total liabilities 19,343,190 20,859,564 36,447,618 17,903,560 55,790,808 38,763,124 Net position: Net investment in capital assets 11,950,082 10,668,265 29,925,787 33,022,684 41,875,869 43,690,949 Restricted 9,722,910 7,947,511 - - 9,722,910 7,947,511 Unrestricted (6,054,183) (4,237,983) 21,380,282 6,644,980 15,326,099 2,406,997 Total net position $ 15,618,809 $ 14,377,793 $ 51,306,069 $ 39,667,664 $ 66,924,878 $ 54,045,457 As noted earlier, net position may serve over time as one useful indicator of a government's financial condition. The assets and deferred outflows of the City of Dunn exceeded liabilities and deferred inflows by $66,924,878 as of June 30, 2025. The City's net position for governmental activities and business -type activities were $15,618,809 and $51,306,069, respectively. The City's net position increased by $13,043,591 before restatement for the fiscal year ended June 30, 2025. The largest portion of net position $41,875,869, reflects the City's net investment in capital assets (e.g. land, buildings, machinery, and equipment); less any related debt still outstanding that was issued to acquire those items. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's net investment in its capital assets is reported net of the outstanding related debt, the resources needed to repay that debt must be provided by other sources, since the capital assets cannot be used to liquidate these liabilities. An additional portion of the City's net position of $9,722,910 represents resources that are subject to external restrictions on how they may be used. A balance of $15,326,099 is unrestricted. Several particular aspects of the City's financial operations positively influenced the total governmental net position, notably, the continued diligence in the collection of property taxes by accomplishing a tax collection percentage of 98.98% and the continued growth in the tax base. 13 Revenues: Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Property taxes Other taxes Grants and contributions not restricted to specific programs Investment earnings Other Total revenues City of Dunn Changes in Net Position Figure 3 Governmental Business -Type Activities Activities Total 2025 2024 2025 2024 2025 2024 $ 1,984,430 $ 2,103,160 $ 9,061,968 $ 8,462,345 $11,046,398 $ 10,565,505 338,486 333,155 549,700 357,258 888,186 690,413 704,355 513,109 10,961,361 8,048,632 11,665,716 8,561,741 6,472,606 5,795,813 - - 6,472,606 5,795,813 4,915,461 4,878,929 - - 4,915,461 4,878,929 119,039 787,156 - - 119,039 787,156 366,888 325,865 127,256 99,339 494,144 425,204 226,022 913,115 377,245 316,769 603,267 1,229,884 15,127,287 15,650,302 21,077,530 17,284,343 36,204,817 32,934,645 Expenses: General government 2,761,518 3,473,268 - - 2,761,518 3,473,268 Public safety 5,443,624 4,374,530 - - 5,443,624 4,374,530 Transportation 2,052,423 2,244,777 - - 2,052,423 2,244,777 Environmental protection 863,356 826,783 - - 863,356 826,783 Cultural and recreational 1,991,958 1,808,482 - - 1,991,958 1,808,482 Library 17,664 474,492 - - 17,664 474,492 Interest on long-term debt 211,794 209,160 - - 211,794 209,160 Water and sewer - - 9,424,161 8,046,449 9,424,161 8,046,449 Other - - 394,728 286,830 394,728 286,830 Total expenses 13,342,337 13,411,492 9,818,889 8,333,279 23,161,226 21,744,771 Increase in net position, before transfers 1,784,950 2,238,810 11,258,641 8,951,064 13,043,591 11,189,874 Transfers (426,209) (118,800) 426,209 118,800 - - Increase in net position, after transfers 1,358,741 2,120,010 11,684,850 9,069,864 13,043,591 11,189,874 Net position, beginning, as previously report- 14,377,793 12,257,783 39,667,664 30,597,800 54,045,457 42,855,583 Prior period restatement (117,725) - (46,445) - (164,170) - Net position, beginning, restated 14,260,068 12,257,783 39,621,219 30,597,800 53,881,287 42,855,583 Net position, ending $ 15,618,809 $ 14,377,793 $ 51,306,069 $ 39,667,664 $ 66,924,878 $ 54,045,457 Governmental activities- Governmental activities increased the City's net position by $1,358,741 before restatement, thereby accounting for 10% of the total increase in the net position of the City. Positive elements affecting net position were an increase in intergovernmental revenue and a strong property tax collection rate of 98.98%. Business -type activities- Business -type activities of the City reported $51,306,069 in net position, an increase of $11,684,850 before restatement. Positively impacting net position was a $10,961,361 of revenue from capital grants. 14 Financial Analysis of the City's Funds As noted earlier, the City of Dunn uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds- The focus of the City's governmental funds is to provide information on near term inflows, outflows, and balances of usable resources. Such information is useful in assessing the City's financing requirements. Specifically, unassigned fund balance can be a useful measure of a government's net resources available for spending at the end of the fiscal year. The General Fund is the chief operating fund of the City of Dunn. At the end of the current fiscal year, unassigned fund balance of the General Fund was $3,468,596, while the total fund balance reached $8,577,034. As a measure of the General Fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 24% of total General Fund expenditures, while total fund balance is 60% of total General Fund expenditures At June 30, 2025, the governmental funds of the City of Dunn reported a fund balance of $10,523,696 with a net increase in fund balance of $626,157. Included in this change in fund balance is an decrease in fund balance in the General Fund totaling $775,240. General Fund Budgetary Highlights- During the fiscal year, the City revised the budget on several occasions. Generally, budget amendments fall into one of three categories: 1) amendments made to adjust the estimates that are used to prepare the original budget ordinance once exact information is available; 2) amendments made to recognize new funding amounts from external sources, such as federal and State grants; and 3) increases in appropriations that become necessary to maintain services Revenues were more than the budgeted amounts primarily because the City did not expect to receive some of the unrestricted intergovernmental funds that became available. Expenditures were held in check to comply with its budgetary requirements Proprietary Funds. The City's proprietary funds provides the same type of information found in the government -wide statements, but in more detail. Unrestricted net position of the Proprietary Funds at the end of the fiscal year amounted to $21,380,282. Other factors concerning the finances of this fund have already been addressed in the discussion of the City's business -type activities Capital Assets and Debt Administration Capital Assets - The City's investment in capital assets for its governmental and business -type activities as of June 30, 2025, totals $77,593,128 (net of accumulated depreciation). These assets include buildings, land, machinery and equipment, park facilities, and vehicles. Major capital asset transactions during the year include the additions of land and funding of capital projects, equipment, vehicles and infrastructure. Disposals included equipment and vehicles. City of Dunn, North Carolina's Capital Assets (Net of depreciation) Figure 4 Governmental Business -type Activities Activities Total 2025 2024 2025 2024 2025 2024 Land $ 2,587,985 $ 2,587,985 $ 861,465 $ 595,395 $ 3,449,450 $ 2,863,857 Construction in progress 767,075 155,722 14,453,600 13,811,281 15,220,675 4,737,057 Building 3,130,041 3,250,423 156,079 173,408 3,286,120 3,620,615 Equipment 442,621 422,045 1,509,833 1,724,736 1,952,454 1,746,898 Improvements other than buildings 8,828,373 9,235,340 - - 8,828,373 5,517,256 Plant and distribution systems - - 40,883,158 27,734,876 40,883,158 26,537,895 Vehicles 1,479,396 1,708,913 1,006,467 1,003,647 2,485,863 1,468,790 Other 609,900 659,746 877,135 1,115,996 1,487,035 1,207,231 Total $ 17,845,391 $ 18,020,174 $ 59,747,737 $ 46,159,339 $ 77,593,128 $ 64,179,513 Additional information on the City's capital assets can be found in the notes to the Basic Financial Statements. 15 Long-term Debt. The City had $34,401,724 outstanding for installment purchase debt and $1,315,535 outstanding on water and sewer revolving loans. Governmental Activities Business -type Activities Total 2025 2024 2025 2024 2025 2024 General obligation bonds $ - $ - $ - $ 135,000 $ - $ 135,000 Direct borrowing agreements 5,895,309 7,351,909 28,506,415 11,466,867 34,401,724 18,818,776 Direct placement Water and Sewer revolving loans - - 1,315,535 1,534,791 1,315,535 1,534,791 Total $ 5,895,309 $ 7,351,909 $29,821,950 $ 13,136,658 $35,717,259 $ 20,488,567 North Carolina general statutes limit the amount of general obligation debt that a unit of government can issue to 8 percent of the total assessed value of taxable property located within that government's boundaries. The legal debt margin for the City of Dunn is $93,870,948. The City has no bonds authorized but unissued at June 30, 2025. Additional information regarding the City's long-term debt can be found in the notes to the basic financial statements. Economic Factors and Next Year's Budgets and Rates The following key economic indicators reflect the growth and prosperity of the City: • Housing starts, renovations, and developing subdivisions within the City are increasing. • The City's Downtown District continues to experience growth with new business openings and continued commitment from existing business owners. • New businesses within the City limits and expansions to existing businesses have provided new jobs opportunities. Requests for Information This report is designed to provide an overview of the City's finances for those with an interest in this area. Questions concerning any of the information found in this report or requests for additional information should be directed to the Finance Director, Cary McNallan, 401 East Broad Street, Dunn, NC 28334. You can also call (910) 230-3515, visit our website www.cityofdunn.org or send an email to cmcnallan@dunnnc.org for more information. 16 CITY OF DUNN NORTH CAROLINA Gt%Aue c&.otftzt-�4 begt�" l Regular Meeting, January 27, 2026 Agenda Item(s): Recognition of Butch Halpin - Hometown Hero Award Presenter(s): Interim Police Chief, Nicholas Simmons Responsible Staff: Interim Police Chief, Nicholas Simmons Action Item: No Attachment(s): Background This award was presented on behalf of the North Carolina Automobile Dealers Association's Hometown Heroes Program. The Hometown Heroes program honors first responders who protect and serve North Carolina Communities. The program was launched in 2016 in recognition of the 15` anniversary of 9/11, the program celebrates courage, dedication and selflessness that is demonstrated by first responders. This award was presented at the 2025 Hometown Heros Recognition Luncheon on December 11 2025, in Durham North Carolina. Each year, franchised new car, truck and RV dealerships across North Carolina host events to recognize the first responders in their area. Each event is unique, but the purpose remains the same: thanking heroes who serve their communities. This year Butch Halpin was nominated by John Riley, CFO of Bleecker Automotive. Page 1 of 1 �_ f v r �. ,�' pia .� '*� � .a x :F Y , �e � � _ -s. 6 CITY OF DUNN NORTH CAROLINA G�e esAmz""4 be#qs/ Regular Meeting, January 27, 2026 Agenda Item(s): Presenter(s): Responsible Staff: Action Item: Attachment(s): Recognition of Michael Godfrey- Officer of The Year Award Interim Police Chief, Nicholas Simmons Interim Police Chief, Nicholas Simmons No Background Recognition of Michael Godfrey for receiving the Police Officer of the Year award, presented during the inaugural Everyday Day Hero Awards Ceremony. The awards ceremony was put on by the Dunn Chamber of Commerce on January 6, 2026. Officer Godfrey was nominated for his response to a tragic traffic accident that occurred on September 12, 2025. Officers Godfrey's actions were courageous and selfless. He did not hesitate to intervene and did everything possible to assist the victims. Page 1 of 1 I a vi2l CITY OF � DUNN �W'000000 NORTH CAROLINA Gd�e es"to,6e2�"u/ Regular Meeting, January 27, 2026 Agenda Item(s): 2026 Black History Month Proclamation Presenter(s): Mayor Elmore Responsible Staff: Mayor Elmore Action Item: Yes Attachment(s): 1) 2026 Black History Month Proclamation PURPOSE Reading of 2026 Black History Month Proclamation. Page 1 of 1 1887 1 • i A: • �e r A, /�JM / ! / WHEREAS the City of Dunn takes pride in recognizing February as Black History Month, celebrating the many notable contributions Black people have made in our country and town; and WHEREAS we celebrate the diversity of Black people in Dunn and the nation, whether they identify as African, African -American, Afro -Latino, Afro -Caribbean, or Black; and WHEREAS, this year's Black History Month theme of A Century of Black History Commemorations, recognizes celebrations stretching back to Dr. Carter G. Woodson's inaugural week-long Black History observance in 1925; and WHEREAS, February was formally adopted as Black History Month in 1976 by President Gerald Ford. NOW THEREFORE BE IT PROCLAIMED that I, William P. Elmore, Jr., Mayor of Dunn, North Carolina, and on behalf of the City Council do hereby proclaim the month of February as in the City of Dunn and encourage all residents of our community to participate in the education and celebratory events honoring the contributions and accomplishments of African Americans. Adopted this the 27th day of-7anuary, 2026. ATTEST: Melissa R. Matti City Clerk William P. Elmore Jr. Mayor Vhere cammuni� 6Tins! CITY O DUNN NORTH CAROLINA GdAere ea"fuXU14 6e2cNsl Regular Meeting, January 27, 2026 Agenda Item(s): Approval of January 13, 2026 Work Session Minutes Presenter(s): Melissa Matti, City Clerk Responsible Staff: Melissa Matti, City Clerk Action Item: Yes Attachment(s): 1) January 13, 2026 Work Session Minutes Background None Budget Impact None Staff Recommendation(s) Approval of Minutes as presented. Suggested Motion(s) Motion to approve January 13, 2026 Work Session Minutes as presented. Page 1 of 1 Dunn City Council Work Session Tuesday, January 13, 2026 6:30 p.m., Dunn Municipal Building Minutes PRESENT: Mayor William P. Elmore Jr., Mayor Pro Tern April Gaulden, Council Members Raquel McNeil, Billy N. Tart, and Dr. David L. Bradham. ABSENT: Council Members J. Wesley Sills and Alan Hargis. ALSO PRESENT: City Manager Justin Hembree, Assistant City Manager Billy R. Godwin, Finance Director, Cary McNallan, Interim Police Chief Nick Simmons, Captain Matt Smith, Administrative Support Specialist Christy Sweeney, City Attorney Tilghman Pope and City Clerk Melissa Matti. CALL TO ORDER Mayor William P. Elmore, Jr. called the Dunn City Council Work Session to order at 6:40 p.m. on January 13, 2026. The Mayor noted that two Council Members were absent, one due to being out of town and one due to illness. He confirmed there was a quorum present to conduct business. INVOCATION and PLEDGE OF ALLEGIANCE Mayor Pro Tem April Gaulden led the invocation followed by the Pledge of Allegiance. CONSIDERATION & APPROVAL OF THE AGENDA Motion by Council Member Bradham, seconded by Council Member Tart to approve the agenda. Motion carried unanimously. CONSENT AGENDA The Consent Agenda included one (1) item: • Approval of December 9, 2025 Regular Minutes Motion by Council Member Bradham, seconded by Council Member Tart to approve the December 9, 2025 Regular Minutes. Motion carried unanimously. ITEMS FOR DISCUSSION & CALENDARING FOR JANUARY 27, 2026 REGULAR MEETING Water Treatment Plant Land Purchase Financing Finance Director, Cary McNallan introduced Ty Welford from Davenport Public Finance to discuss financing options for the Bales property purchase for the Wastewater Treatment Plant Expansion. Mr. Welford presented information on a $3.5 million loan needed to reimburse the City for the land purchase. He explained that they had solicited proposals from various banks, receiving responses from JPMorgan Chase and Webster Bank. After analysis, Davenport recommended moving forward with Chase due to their competitive interest rate (approximately 4%) and more favorable collateral requirements. Chase would allow the City to only pledge the portion of land designated for the water plant (shown in green on the presented map) as collateral at a 50% loan -to -value ratio. Webster would require all purchased land to be pledged, including parcels the City intends to resell (shown in blue on the map). The Chase loan would have a 15-year term with annual payments of approximately $307,000. Mr. McNallan noted that to cover this annual payment, water rates would need to increase by 9.75%. Council Member McNeil expressed significant concern about implementing another rate increase so soon after a previous one, stating that residents were already struggling with current rates. Mayor Elmore noted that this information was preliminary and would be discussed further at the upcoming retreat in February. A Public Hearing was held at 6.58 p.m. regarding the financing, with no members of the public speaking. Motion by Council Member Bradham, seconded by Council Member Tart to approve the Resolution Making Certain Findings and Determination Regarding the Proposed Financing of the Acquisition of Land for Future Water Plant Expansions for the City, Approving the Purchaser and Requesting the Local Government Commission to Approve the Financing Arrangement. Motion carried unanimously. A copy of the Resolution Making Certain Findings and Determination Regarding the Proposed Financing of the Acquisition of Land for Future Water Plant Expansions for the City, Approving the Purchaser and Requesting the Local Government Commission to Approve the Financing Arrangement (R2026-01) is incorporated into these minutes as Attachment #L Rezoning Application (RZ-25-03) - Vann Lane Interim Planning Director, William Deaton presented information on a Rezoning Application for over seventy (70+) acres on Vann Lane. The request is to zone this property R-7, consistent with the existing Seasons Development that it would connect to. Mr. Deaton explained this would be the initial zoning for an annexed property and noted that no action was required at this meeting. The rezoning Application will be brought back for a vote at the January 27, 2026 Regular Meeting. Rezoning Application (RZ-25-04) - Dogwood Knoll Street and Fairground Road Interim Planning Director, William Deaton presented a second Rezoning Application involving property on Dogwood Knoll Street and Fairground Road. The property is currently zoned Commercial, and the applicant is requesting that the property be rezoned to R-7 for Single -Family Residential Development. Mr. Deaton explained that a stormwater drain runs diagonally through the property, making Commercial development difficult. The Planning Department recommends approval as Residential would be more compatible with the existing Dogwood Knoll neighborhood. Mr. Deaton answered questions about potential access issues for the lots, explaining that the developer would need to either improve Davis Street (an unimproved right-of-way) or reconfigure lots to have access from Fairground Road. No action was required at this meeting. Before concluding this agenda item, Mr. Deaton introduced Stephanie Goodrich, the City's new Senior Planner who started December 1. He highlighted her extensive experience in local government planning across multiple states. Termination of Contract to Sell Real Property Stoney Run Property City Manager, Justin Hembree explained that in early December, the City received notice from NVR Incorporated (Ryan Homes) requesting termination of their contract to purchase City property for the Stoney Run development. The developer cited changing market conditions as the reason for termination. Mr. Hembree noted that since the City Council originally approved the contract, they needed to formally approve its termination. Motion by Mayor Pro Tern Gaulden seconded by Council Member McNeil to terminate the January 15, 2025 contract between the City and NVR Incorporated for the sale of real property and to authorize the City Manager to execute the attached Termination of Contract to Sell Real Property. Motion carried unanimously. A copy of Termination of Contract to Sell Real Property is incorporated into these minutes as Attachment #2. FY25 Audit Contract Agreement Finance Director, Cary McNallan explained that the FY25 audit had been completed by Thompson Price Scott Adams Company (TPSA). The original contract was for $45,000, with an allowance for additional single audits at $3,000 each. Due to the City's numerous grants, four (4) single audits were required instead of the three (3) originally estimated, along with additional reporting requirements. Mr. McNallan requested approval of a $4,000 increase to the Audit Contract. Motion by Council Member Bradham, seconded by Council Member Tart to approve the attached Resolution Amending the FY25 Audit Contract with TPSA and Authorize the Mayor and City Manager to Execute the Required Documents. Motion carried unanimously. A copy of the Resolution Amending the FY25 Audit Contract with TPSA is incorporated into these minutes as Attachment #3. Acceptance of Monetary Donation Police Department Interim Police Chief Simmons explained that Tractor Supply had selected the Dunn Police Department as part of their "Hometown Hero" program and donated $250 to the department. City Manager Hembree noted that while the amount was small, bringing such donations to Council for formal acceptance was important for transparency. Motion by Mayor Pro Tem April Gaulden, seconded by Council Member Tart to accept the $250 donation from Tractor Supply and approve the Budget Amendment as presented. Motion carried unanimously. A copy of Budget Amendment (BA-2026-1 S) is incorporated into these minutes as Attachment #4. REPORTS & UPDATES City Manager's Report City Manager Hembree provided updates on several matters: • He shared photos of the recently completed demolition of a house on property purchased for the Water Plant Expansion. • He discussed the upcoming Budget Retreat, explaining that this year's format would be different from previous years. Rather than focusing on departmental operations, the retreat would concentrate on identifying priorities for the upcoming fiscal year and longer -term planning to guide the budget process. • He noted that on Friday afternoon of the retreat, Ahmed Rachid El-Khattabi, Ph.D. from the Environmental Finance Center at the School of Government would give a presentation on setting utility rates. • He presented a draft letter addressed to the Harnett County Board of Commissioners regarding concerns about the North Carolina Department of Adult Corrections, Probation and Parole office located in downtown Dunn. The letter detailed numerous issues caused by the office's placement in the heart of the downtown business district, including loitering, public urination on neighboring buildings, vulgar language, and intimidating behavior that negatively impacts downtown businesses and visitors. Mayor Elmore noted that he, Billy Godwin, and the City Manager had discussed this issue multiple times with County officials. These officials didn't see the urgency in addressing the problem. He asked for the Council's consensus to send the letter and that was given. Council Member McNeil asked for clarification about who was responsible for the office placement, and Mr. Hembree explained that while it's a State program, the County is required to provide facilities for these offices. A copy of the letter to Harnett County Board of Commissioners is incorporated into these minutes as Attachment #5. UPDATES Police Department Interim Police Chief Simmons provided an update on the department's Flock camera system, which has been in place for nearly two (2) years. He noted that the sixteen (16) cameras read between 1-1.4 million license plates monthly and have proven very successful for enforcement and investigations. Chief Simmons addressed privacy concerns that had been raised about the system, explaining that they had temporarily limited their network access to only North Carolina until security improvements were implemented. He shared two (2) success stories involving the camera system: • In December, the system helped identify a murder suspect from Atlanta who was staying at the Fairfield Inn. Officers were able to safely apprehend the suspect who had warrants for murder, armed robbery, possession of a firearm during a felony, aggravated assault, and conspiracy. • Recently, the cameras helped locate a mother who had fled Virginia with her seven (7) children after having issues with DSS. She was found at Tart Park with multiple warrants, and Virginia DSS was able to retrieve the children. ANNOUNCEMENTS Mayor Elmore announced the following announcements: • Monday, January 191 - Martin Luther King, Jr. Parade • Thursday, January 22nd - Codrington Park Community Input at Senior Center at 6p.m. • Friday, February 61— 7t' — City of Dunn Budget Retreat at Lumina on Wrightsville Beach ADJOURNMENT The meeting was adjourned at 7:45 p.m. William P. Elmore, Jr. Mayor Attest: Melissa R. Matti City Clerk CITY OF DUNN NORTH CAROLINA G�e cs"tousu% 6eyuu/ Regular Meeting, January 27, 2026 Agenda Item(s): Budget Amendment - Various Operating Accounts Presenter(s): Cary McNallan, Finance Director Responsible Staff: Cary McNallan, Finance Director Action Item: Attachment(s): Yes 1) Budget Amendment Background These budget amendments are requested for the following reasons: 1. Appropriation of General Fund Reserves that have been set aside for maintenance and repairs of our onsite fuel tanks at the Public Works location. The repairs were for the cleaning of the fuel tank and a sensor repair. 2. Appropriate Water Fund Reserves for replacement of a waterline at the 500 block of Canary Street and a replacement waterline at Friendly Road. Staff Recommendation(s) Staff are recommending that these Budget Amendments be approved. Budget Impact The overall budget for the General Fund will increase by $9,720. The Water Fund adjustments area shift between expense line items so there is no impact on the overall fund total. Suggested Motion(s) Motion to approve the attached Budget Amendments for the General Fund and Water Fund. Page 1 of 1 1 1 2 2 1 CITY OF DUNN BUDGET ORDINANCE AMENDMENT Department: Various Budget Amendment #: 16 FISCAL YEAR ENDING: 6/30/2026 Date: 1/27/2026 FUND Acct # LINE ITEM DESCRIPTION Appropriation Before Amendment Amount of Amendment Increase / (Decrease) Appropriation After Amendment General 010-0565-1700 Maint & Repair - Equipment 5,000.00 2,567.00 $ 7,567.00 General 010-0565-4500 Contract Services 1,000.00 7,153.00 8,153.00 Water 029-0809-7402 Capital Improvements - 196,565.00 196,565.00 Water 029-0709-5800 Reserve for Contingency 407,651.00 (196,565.00) 211,086.00 EXPENDITURE TOTAL: $ 41:5,b51.00 $ 9,72UM $ 4Z3,371.UU Appropriation Amount of Appropriation FUND Acct # LINE ITEM DESCRIPTION Before Amendment After Amendment Increase / (Decrease) Amendment General 010-0368-2001 Fund Balance Appropriation $ 832,077.00 $ 9,720.00 $ 841,797.00 REVENUE TOTAL: $ 832,077.00 $ 9,720.00 $ 841,797.00 CERTIFICATION: I certify this requested budget amendment was approved by the City Council on: City Manager: 1/27/2026 Finance Director: 1/27/2026 JUSTIFICATION: 1. Appropriate funds for repairs to the onsite fueling tanks. 2. Appropriate reserves for waterline replacement at 500 block of E Canary Street, and waterline at Friendly Road FUNDING SOURCE: 1. Fund Balance fuel repair reserves 2. Water Fund reserve for contingency ---- CITY OF DUNN NORTH CAROLINA �Wve csm� 6ey4ns1 Regular Meeting, January 27, 2026 Agenda Item(s): Rezoning Application (RZ-25-03) — Vann Lane Presenter(s): Will Deaton, Interim Planning Director Responsible Staff: Will Deaton, Interim Planning Director Action Item: Yes Attachment(s): 1) Rezoning Application 2) Staff Report 3) Statements of Justification 4) Metes & Bounds _Background RZ-25-03 is a zoning map amendment to initially zone properties at 396 and 611 Vann Lane, along with an unaddressed parcel on Vann Lane. The request seeks to change the zoning from Harnett County's Residential/Agricultural (RA-20M) District to the City of Dunn's Residential 7 (R-7) District. This zoning request is part of the annexation process. The Planning Board voted unanimously to recommend approval at the January 6t" meeting. Budget Impact None Staff Recommendation(s) Recommendation is to approve the Rezoning Request RZ-25-03 as presented. Suggested Motion(s) Motion to approve Rezoning Request (RZ-25-03) to rezone three parcels, PINs being 1516-37- 0736.000, 1517-37-9653.000, and1517-47-0665.000, 73.32 acres +/- located near the intersection of Vann Lane and Meadowlark Road from Harnett County's Residential/Agricultural (RA-20M) district to the City of Dunn's Residential 7 (R7) District, as presented. Page 1 of 1 For Planning Department Use Only t Case Number ft.?- 2 5-- 0 3 Date Received J,DUNN Fee Paid Board Meeting 1 - to Z O z% City Council Meeting — �,1 J o a,(o REZONING APPLICATION OWNERSHIP INFORMATION: Applicant: RP Wellons Land & Development, LLC Phone Number: ( 910 892 3123 ) - Applicant's Legal Interest in Property: Purchaser - Residential Develoment Applicant's Address: Property Owner: PO Box 730, Dunn, NC 28335 Barefoot Land & Rental Investments, LLC - Sharon Elaine Barefoot, Registered Agent Owner's Address: 3201 Meadowlark Rd, Dunn, NC 28334 Date Property Acquired: 12/20/2022 Deed Reference: Book 4177 Page 0880 1517 37 0736 Tax PIN Number: _ -.: _ 000 and 1517-47-0665.000 and 1517-37-9653.000 Size (Sq. Ft. or Acres) 73.32 ac_ Street Frontage (ftl_ Location/Address: 611 and 396 Vann Lane, Dunn, NC 28334 Attach a legal description (Metes and Bounds Description) of the area requested. ZONING REQUEST: A. Existing Zoning: RA-20 Requested Zoning: R-7 B. Land Uses: Single Family & Agricultural 1. Existing land uses on property to be rezoned: 2. Existing or proposed land uses on all adjoining properties: North Agricultural/ Residential South Agricultural/Residential East Residential west Residential NOTICE OF PUMIC I I FARI*.sCv '40"' �w ft UP*Uk fk*rkg kv a Re"" #W* atKv-p lkq " by At CVY C4001NO of V%f co", of Dow" 04 law"T 21. 4 al fir. 4 t A I - i a the ce w U, 0 0 a vi tic w c I ) "A U if W 0 A J4 #at ro" 44-co"40ist ow "Mkq igtow 0,10,NING AMXATIMN C�74$*.1 Uvow "" * *AMA un"Ums"14 11C A#14cww its, we"**$ "" 4 ur flMic -03 k a toast ftv &w%Awr*4 "WAV 4* W*Aw dw ALMNING APMCATION %ZjS *4 ofts"10, cvf naftwo-4 pwimm. Mot C**t 144W46 Pwlsow. U.c 1 l7, -04-44 77-Q 41 ZIA". lftr. 4140WOk lu Cwy C*vk-0 rain,("Wwo 0 rok I k" 44 sQtip 10 lKst " MPF6"taow AS Ooot *imhvg go qq� ve "r� are so 4004 O^J jwA AN%* oc � )k#rj#f #**w Aftv v"010flo A040 041, copk% otipp"110" ww mg OVA" Arnim ag OAC "mews vqoor"bw 4*d*f wew 4 a As 1 - m M".4" %V*m twaomwws *Skew" Mc airy (4 Ot DFPAW)lt.N-T P.0� pox M$ MINNIL -N)CUO$ JiMulou 'a f Being all of three tracts located in City of Dunn, Averasboro Township, Harnett County, NC Being all of the following properties: BAREFOOT LAND AND RENTAL INVESTMENTS, LLC 1517-37-0736.000 - DB 4177, PG 180 1517-37-9653.000 - DB 4177, PG 180 1517-47-0665.000 - D B 4177, PG 180 And more particularly described as follows: COMMENCING at a point, said point beingthe northeastern corner of James Ricky Tripp & Elsie Marie Tripp Hardee as recorded in Deed Book 2896, Page 130, Harnett County Registry and having coordinates of N 576,413.56 and E 2,112,147.09 NC GRID NAD 83 (2011); thence running as a tie North 48 degrees 10 minutes 17 seconds West to a point and N 47 degrees 37 minutes 41 seconds West, 167.78'to the POINT OF BEGINNING; thence leaving said point and running the following bearings and distances: North 47 degrees 54 minutes 00 seconds West, 192.89'to a point; thence North 44 degrees 09 minutes 00 seconds West, 1,171.10'to a point; thence North 44 degrees 13 minutes 00 seconds West, 706.00'to a point; thence alongthe run of Secon Branch the following bearings and distances: North 88 degrees 43 minutes 00 seconds East, 27.50'to a point; thence North 77 degrees 06 minutes 00 seconds East, 204.11'to a point; thence South 46 degrees 20 minutes 00 seconds East, 47.80'to a point; thence North 78 degrees 52 minutes 00 seconds East, 105.29'to a point; thence North 67 degrees 14 minutes 45 seconds East, 86.15'to a point; thence North 79 degrees 17 minutes 00 seconds East, 114.08'to a point; thence South 87 degrees 25 minutes 00 seconds East, 99.86'to a point; thence North 75 degrees 23 minutes 00 seconds East, 206.94'to a point; thence South 87 degrees 28 minutes 00 seconds East, 68.20'to a point; thence North 89 degrees 13 minutes 00 seconds East, 113.56'to a point; thence North 06 degrees 14 minutes 00 seconds East, 57.98'to a point; thence South 83 degrees 29 minutes 31 seconds East, 129.60'to a point; thence North 56 degrees 21 minutes 16 seconds East, 158.31'to a point; thence leaving said Secon Branch and continuing South 03 degrees 27 minutes 12 seconds East, 265.14'to a point; thence South 06 degrees 11 minutes 12 seconds East, 1,087.04'to a point; thence South 06 degrees 11 minutes 12 seconds East, 477.57'to a point; thence South 54 degrees 18 minutes 04 seconds East, 290.37'to a point; thence South 53 degrees 30 minutes 39 seconds East, 229.11'to a point; thence North 48 degrees 24 minutes 00 seconds East, 874.52to a point; thence North 48 degrees 24 minutes 00 seconds East, 233.40'to a point; thence I South 60 degrees 02 minutes 00 seconds East, 554.82'to a point; thence South 44 degrees 52 minutes 00 seconds West, 409.10'to a point; thence North 49 degrees 50 minutes 00 seconds West, 460.65'to a point; thence North 43 degrees 23 minutes 30 seconds East, 68.53'to a point; thence North 46 degrees 32 minutes 17 seconds West, 131.15'to a point; thence South 44 degrees 58 minutes 43 seconds West, 315.70'to the POINT OF BEGINNING, containing 74.12 acres, more for less. 2 C. Statement of Justification: (City Code, Article II of Section 22) The proposed zone shall be greater than three (3) acres of land or... if smaller, the property adjoins and is contiguous to two (2) zoning districts after the proposed change. Attach a statement justifying the requested map change based upon the following: 1) The amendment, if small scale, is reasonable based upon surrounding conditions. 2) The impact of zoning is in the public interest and does not significantly harm the surrounding properties. 3) The amendment is warranted due to changed or changing conditions in the area. 4) The amendment achieves the purpose and is consistent with the Land Use Plan. Exhibit A C. Statement of Justification 1. The amendment is reasonable based upon surrounding conditions. The size of the subject real property tract (73.32 +/- acres) makes the requested R-7 zoning amendment reasonable when you observe the conditions of the surrounding properties. The subject tract is surrounded on three sides by agricultural fields which are zoned R-20. The south side of the subject tract is currently under development as Seasons Subdivision, zoned R- 7. Propertyto the south is currently owned and under construction by the same applicant. The proposed use of the subject tract for single family residential purposes is reasonable for this location. 2. The impact of zoning is in the public interest and does not significantly harm the surrounding areas. The applicant intends to use the subject tract for single family residential development purposes. To properly develop, market, and sell the individual single family units on the subject tract, a R-7 zoning classification is needed. The R-7 zoning designation will allow residential development of new single-family housing of a nature that is in demand by current and future citizens of the City of Dunn. The planned development will increase the tax base for the city and should increase economic activity in the area. This planned single family housing will have no detrimental effect on the surrounding agricultural area and no significant harm to the nearby residential properties. 3. The amendment is warranted due to changed or changing conditions in the area. The location of the subject tract is at the border of R-7 residential subdivision and R-20 Large agricultural tracts. Residential growth has existed in this area; however the residential market continues to change in this area of the City of Dunn as smaller residential lots and housing units are more economically feasible for citizens. Housing customers are willing to trade off housing size square footage in exchange for homes with custom features and amenities with smaller yards to maintain. The requested R-7 district better meets the development requirements of the market. At the same time this zoning classification would still adhere to and maintain the single-family residence concept thereby preserving that aspect of development in the area. 4. The amendment achieves the purpose and is consistent with the Land Use Plan. The 2030 Lane Use Plan for the City of Dunn identifies the future development areas maps and future land use map support the proposed R-7 zoning for the subject tract in that these maps show this area as planned for residential use and growth. The rapid development of the Gleneagles and Middleton Townes Community, in the past few years is an example of the type of residential development that the land use plan envisioned. Therefore, the requested R-7 district designation consistent with the City of Dunn Land Use Plan. 0 ADJOINING PROPERTY OWNERS (WITHIN 100 FEET OF REQUESTED CHANGE) NAME MAILING ADDRESS PIN NUMBER 1. Joan P Greene Trustee 319 Cedar Club Cir, Chapel Hill NC 27517-7211 1517 ` 38 7809 _ 000 2. 1517 1517 2279 Joan P Greene Trustee 319 Cedar Club Cir. Chapel Hill NC 27517-7211 - - .000 3. 8021 08 8021 Joan P Greene Trustee 319 Cedar Club Cir,-Chapel Hill NC 2 - - 000 4. PO Box 730 1517 17 2306000 Dunn, NC 2 R� - - RP Wellons Land & Development, LLC 5. PO Box 730 1517 _ 16 _ 0758 000 Dunn, NC 2833-5 RP Wellons Land & Development, LLC 6. 319 Cedar Club Cir 1517 6 8890 Chapel Hill, NC 27517-7211 - - .000 Joan P. Greene, Trustee 7. 805 N Park Ave. 1517 36 1342 Dunn, NC 2.33� - - .000 Carol Johnson 8. 711 Old Fairground Rd 1517 46 6406 Dunn, NCB - _ 000 Glad Tidings Church 9. 112 Vann Ln 1517 47 2068 Dunn, NC 28334 r - .000 Dannie Ray Vann 10. 804 Oakwood Ave 1517 L7 1879 Dunn, NC - _ .000 Pamela V Johnson, Trustee 11. 238 Vann Ln 3888 Dunn, NC 28334 1517 47 - - .000 Charles W Vann, Jr 12 112 Vann Ln Dunn, NC 28334 1517 47 2879 - - .000 Roger & Kimberly Faircloth 5 OWNER'S CERTIFICATION I (We) do herby certify that: I am (We are) the owners or authorized agent of the property described in this application for rezoning and have attached copies of deed, title reports or other documents as proof of ownership. I (We) have read the rezoning procedures, requirements and have truthfully completed this application for rezoning. I (We) understand that the filing fees are non-refundable; the process to review rezoning cases includes public hearings and review by both the Planning board and the City Council. I (We) understand that any action to approve our request is at the discretion of the Planning Board and the City Council and additional requirements may be imposed as determined necessary. Signature Date Sworn to and subscribed before me this day of OCt6,f , 20 aS tANE N O l,9 ti : Notary Publ c =D� � '�,• *11i�tmmlsWn Expires: � - S • �o � �-- �0 • "-10-11 c O(JN r� 4~N,1MM 11111N� IPCITY OF DUNN PLANNING AND INSPECTIONS 102 N Powell Ave - PO Box 1065 • Dunn, North Carolina 28335 (910) 230-3505 • CityofDunn.org Case #: RZ-25-03 Meeting Date: January 6, 2026 PIN: 1516-73-0736.0001 1517-47-0665.000, and 1517-37-9653.000 Applicant: RP Wellons Land & Development, LLC Owner: Barefoot Land & Rental Investments, LLC Location: 0, 396, and 611 Vann Lane REQUEST: The applicant is requesting a zoning map amendment to initially zone their properties at 396 and 611 Vann Lane, along with an unaddressed parcel on Vann Lane. The request seeks to change the zoning from Harnett County's Residential/Agricultural (RA-20M) district to the City of Dunn's Residential 7 (R-7) district. This zoning request is part of the annexation process. The subject properties are shown in red below. 'Mere communi� h yinsr ZONING: SITE DATA: Acreage: Existing Use: Current Zoning: Proposed Zoning: 73.32 acres Single family residential and vacant land RA-20M (County) R-7 SURROUNDING PROPERTY DATA: Direction Zoning Existing Use North Residential Agricultural (RA-20M) (County) Agricultural South Residential Agricultural (RA-40) Agricultural & Residential West Residential Agricultural (RA-20M) (County) Agricultural East Residential Agricultural (RA-20M) (County) Agricultural & Residential LAND USE PLAN CONSISTENCY: This rezoning request is consistent with the City of Dunn Land Use Plan. The Future Land Use Map designates these properties as a Medium Density Residential character area. Medium Density Residential applies to majority single- family neighborhoods. Some attached dwellings may be appropriate, including clustering and conservation -oriented subdivisions, and townhomes may be considered as part of a planned development. Medium Density Residential areas are often characterized as "suburban", with few non-residential uses and low - volume neighborhood streets. Pedestrian facilities are appropriate, though connectivity with surrounding areas may be interrupted by higher volume arterial roads. Uses permitted in the R-7 zoning district are compatible with the City's vision for Medium Density Residential areas. Several nearby properties are currently zoned R-7 and previously developed or currently under development as residential developments to include duplexes. Relevant goals and objectives detailed in the Land Use Plan: Policy 1: Manage future growth and encourage quality development through implementation of the Strategic Vision Plan, the Land Use Plan, the Unified Development Ordinance (UDO), and other plans and regulations adopted by the City Council. + 1.2: Support residential development at varying densities based on the Future Land Use Map, associated character area descriptions, and other relevant plans. Policy 6: Encourage a range of housing types based on the availability of infrastructure, proximity to services and amenities, and compatibility with existing development as described in the Future Land Use Map. + 6.2: Within larger developments, encourage higher density housing types be located in those areas with closest proximity to services, amenities, and infrastructure. RECOMMENDATION: Staff recommend approval of RZ-25-03 based on the requested zoning's consistency with the Dunn Land Use Plan. The uses permitted in the Residential 7 (R-7) zoning district are compatible with the City's vision for areas designated as Medium Density Residential areas on the Future Land Use Map. Uses permitted in R-7 are compatible with the City's vision for this character area, and properties near the subject property are also zoned R-7. CONSIDERATIONS: • The Planning Board shall make a recommendation to approve or deny this rezoning request. • This rezoning request is conventional, not conditional, so no conditions of approval may be imposed. • Due to this rezoning request being conventional, all permitted uses in the requested zoning district should be considered. r_INIreTO001 [a►11611 1. Rezoning Application CITY OF HIL. DUNN q W-OOOO NORTH CAROLINA Wle4e cs� 6eg6rs / Regular Meeting, January 27, 2026 Agenda Item(s): Rezoning Request (RZ-25-04) — Dogwood Knoll Street and Fairground Road Presenter(s): Will Deaton, Interim Planning Director Responsible Staff: Will Deaton, Interim Planning Director Action Item: Yes Attachment(s): 1) 2) 3) Rezoning Application Staff Report Map Background RZ-25-04 is a zoning map amendment to rezone six (6) parcels along Fairground Road and Dogwood Knoll Street. The request seeks to change the zoning from the Shopping Center (C-2) District to the Residential 7 (R-7) district. The Planning Board voted unanimously to recommend approval at the January 6tn meeting. Budget Impact None Staff Recommendation4s) Recommendation is to approve the Rezoning Request (RZ-25-04) as presented. Suggested Motion(s) Motion to approve Rezoning Request (RZ-25-04) to rezone one parcel, PINs being 1517-62- 6194.000, 1517-62-8128.000, 1517-61-6938.000, 1517-62-8110.000, 1517-61-8939.000, and 1517-61-7939.000, 1.9 acres +/- located at the corner of Dogwood Knoll Street and Fairground Road from C-2, Shopping Center District to R-7, Residential 7 District, as presented. Page 1 of 1 For Planning Department Use Only CITY OF Case Number 92 - 2 5- O Date Received 11 Fee Paid 60 , Do NORTH C A R O L I H A. Board Meeting 110,2�4? City Council Meeting I -a? d.C@(o REZONING APPLICATION OWNERSHIP INFORMATION: Applicant: Cape Hatteras Partners, LLC 919 524 8860 Phone Number: ( ) - Applicant's Legal Interest in Property: Applicant's Address: Property Owner: Owner PO Box 915 Benson, NC 27504 Cape Hatteras Partners, LLC Owner's Address: PO Box 915 Benson, NC 27504 10/25/2024 4257 2852 Date Property Acquired: Deed Reference: Book _ Page 1517 62 6194 1517-62-8128.000 1517-62-8110.00 P14= 010 Tax PIN Number: -: _ .000 1517-61-6938.00 1517-61-8939.00 2'27&M 1517-61-7939.00 Size (Sq. Ft. or Acres) Street Frontage (ft) _: vtD 0` Location/Address: Dogwood Knoll St / Fairground Rd Attach a legal description (Metes and Bounds Description) of the area requested. ZONING REQUEST: A. Existing Zoning: e-2 (See attached table) Requested Zoning: R-7 B. Land Uses: Vacant land 1. Existing land uses on property to be rezoned: 2. Existing or proposed land uses on all adjoining properties: North R-10 South R-10 / C-2 East Hwy Comm West R-10 M14 at t4k.*0"Im"U"W4. Uic 1•��-�3 !� � � .�a�,tf s�:�.�t �.� �r� �'�� ter- ows"fol 'Ca" I'surso ftmw-*. is c RZ IS- 04 coonotp AWA kk 44aO"44 Ow "Maio$ Wrilkstoomento "w r:o� PDX 14*1 ':�c. \': 2 C. Statement of Justification: (City Code, Article Il of Section 22) The proposed zone shall be greater than three (3) acres of land or... if smaller, the property adjoins and is contiguous to two (2) zoning districts after the proposed change. Attach a statement justifying the requested map change based upon the following: 1) The amendment, if small scale, is reasonable based upon surrounding conditions. 2) The impact of zoning is in the public interest and does not significantly harm the surrounding properties. 3) The amendment is warranted due to changed or changing conditions in the area. 4) The amendment achieves the purpose and is consistent with the Land Use Plan. The proposed rezoning is consistent with the residential zoning that surrounds the subject property. Currently, the majority (5 of 6 lots) of lots are zoned commercial which if developed commercially would likely be detrimental to the surrounding residential neighborhood. A residential use is likely most preferred by the neighbors and the town. This rezoning would clean up a mixed commercial zoning that was likely put in place many years ago when conditions were different and possibly before the surrounding residential community was built. Medium density residential is consistent with the land use plan and the current residential neighborhood. OWNER'S CERTIFICATION I (We) do herby certify that: I am (We are) the owners or authorized agent of the property described in this application for rezoning and have attached copies of deed, title reports or other documents as proof of ownership. I (We) have read the rezoning procedures, requirements and have truthfully completed this application for rezoning. I (We) understand that the filing fees are non-refundable; the process to review rezoning cases includes public hearings and review by both the Planning board and the City Council. I (We) understand that any action to approve our request is at the discretion of the Planning Board and the City Council and additional requirements may be imposed as determined necessary. Signature �0/S Z Date Sworn to and subscribed before me this _ Y da of 1, . 2Q . 50E B. it � . G��'Q,�'t � '• ,1`44:)N,4: m Notary Public �>' ''••�.II J� `� ' My Commission Expires COON ��,•• Zoning of Lots at Fairground Rd & Dogwood Knoll St • Lot 5: R-10 (97.55%); Shopping Center (2.45%) • Lot 6: Shopping Center (96.6%); R-10 (3.4%) • Lot 7: Shopping Center (100%) • Lot 8: Shopping Center (99.49°/o); Highway Commercial (0.51%) • Lot 9: Shopping Center (98.72%); Highway Commercial (0.84%); R-10 (0.44%) • Lot t 0: Shopping Center (70.8%); R-10 (29.2%) CITY OF 1111 ,::,,DUNN PLANNING AND INSPECTIONS 102 N Powell Ave • PO Box 1065 $ Dunn, North Carolina 28335 (910) 230-3505 $ CityofDunn.org Case #: RZ-25-04 Meeting Date: January 6, 2026 PIN: 1517-62-6194.0001 1517-62-8128.000, 1517-61-6938.000, 1517-62-8110.0001 1517-61-8939.000, 1517-61-7939.000 Applicant: Cape Hatteras Partners, LLC Owner: Cape Hatteras Partners, LLC Location: Two unaddressed parcels on Dogwood Knoll Street and four unaddressed parcels on Fairground Road REQUEST: The applicant is requesting a zoning map amendment to rezone six parcels along Fairground Road and Dogwood Knoll Street. The request seeks to change the zoning from the Shopping Center (C-2) district to the Residential 7 (R- 7) district. The subject properties are shown in yellow below. V&re eommuni� h yinjl ZONING: SITE DATA: Acreage: Existing Use: Current Zoning: Proposed Zoning: ON 1.9 acres Vacant land C-2 R-7 SURROUNDING PROPERTY DATA: Direction Zoning Existing Use North Residential 10 (R-10) Residential South Residential 10 (R-10) and Shopping Center (C-2) Residential & Vacant West Residential 10 (R-10) Residential East Highway Commercial (C-3) Commercial shopping center LAND USE PLAN CONSISTENCY: This rezoning request is consistent with the City of Dunn Land Use Plan. The Future Land Use Map designates these properties for Gateways & Corridors. The Gateways & Corridors Character Area includes areas of Dunn that are adjacent to downtown and several prominent entrances to the heart of the City. May of these areas were identified in the City's Strategic Vision Plan as opportunities for improvement and/or redevelopment. Development policies should focus on context -sensitive design standards, a thoughtful blending of uses, adaptive reuse of existing structures, multi -modal access, and creative solutions to development challenges. Pedestrian -scale development, connectivity, and public gathering spaces should support retail, offices, restaurants, breweries, accommodations, and entertainment spaces, as well as single-family, multi- family, and mixed residential uses. Uses permitted in the R-7 zoning district are compatible with the City's vision for Gateways & Corridors areas. The subject properties are located within an existing residential area which is located directly opposite of an existing commercial development. The proposed rezoning to the R-7 district will limit the permitted uses to those which are in keeping with the existing residential development. It will also keep commercial development on the opposite side of North Ellis Avenue rather than encouraging higher intensity commercial development to encroach upon an existing residential development. Relevant goals and objectives detailed in the Land Use Plan: Policy 1: Manage future growth and encourage quality development through implementation of the Strategic Vision Plan, the Land Use Plan, the Unified Development Ordinance (UDO), and other plans and regulations adopted by the City Council. • 1.2: Support residential development at varying densities based on the Future Land Use Map, associated character area descriptions, and other relevant plans. • 1.5: Encourage residential growth development in areas already served by utilities and services. Policy 6: Encourage a range of housing types based on the availability of infrastructure, proximity to services and amenities, and compatibility with existing development as described in the Future Land Use Map. • 6.2: Within larger developments, encourage higher density housing types be located in those areas with closest proximity to services, amenities, and infrastructure. RECOMMENDATION: Staff recommend approval of RZ-25-04 based on the requested zoning's consistency with the Dunn Land Use Plan. The uses permitted in the Residential 7 (R-7) zoning district are compatible with the City's vision for areas designated as Gateway & Corridor areas on the Future Land Use Map. Uses permitted in R-7 are compatible with the City's vision for this character area, and properties adjacent to the subject properties are also zoned R-7. CONSIDERATIONS: • The Planning Board shall make a recommendation to approve or deny this rezoning request. • This rezoning request is conventional, not conditional, so no conditions of approval may be imposed. • Due to this rezoning request being conventional, all permitted uses in the requested zoning district should be considered. ATTACHMENTS: 1. Rezoning Application 82020 - P Sib - fEDEND - Pf " PPE TLUV Rtr FOR ACV FOtAV /AVEJENT CQvcwW R OWN Quwa INCKT-tr-IMtr 9030011 vvr mar arENa R P RAP 51 Pa" FARD RCEr AND P ROW 5j JVACICV U /AROIC vw LOW? 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L-43/9 s PROFESAgRtI LAND S IRW' tV , _ CIA HARRY EARNEST I1AtE715 JOYCE L"w MMTERS y�� D°Ne Tz P°�D u�°B /V�{,/(,(, STREFT IPtAi1C R/IHy - OAM TAKE - c�trrt RADNS LaNcn+ TANGENT BEARIAC CHDAD DEIu ` ..� Ct 3Q00 C2 3B 73 st.ps as s3 Bs. 3u 00 Ta93 s ' 1 BQ O• M� Lm r TROUT !lG � PN T3TT-ar-a W 3W& PO 672, --- - LAW TABLE LAE " ecAlenc - UK t" f V u mm,2.niw =50 u3Li it t L4 32.34 r -' Ls LB ass 37l 4\ \ wvwirw?-Bs-.f`a stet 3350. PC $OT pA VIS Pw�TSBl-fOB? 1 1 Q0 2< PZ tfe 1 . � I L. 1 - HAIMiQ DBB".CTOR1 CERTIFICATE - t A mmy CERTir TNA F TIE XACov L - REIRR CFFXV "S CRRTFICATE - STAIE OF MATM CAROUtA COUNrr OF NAAWTT ot-f � ��, Alm. - AaRNETr Casm RExIsmR} r STATE OF NMI% LAmmak � C"rY 'E7T DfS 7V V" DAY Of REi�7� 7lpA sm /pTee - CU"FICAW tF OV0474W AIM D"WARON - 1 NENEer CZRwr THAT 1 Am nE OrmEA OF TW PROPERrY SHOWY AAp DESK HEREDHL w#CH S EXAM IN IW SLAICIMPOFf TMSmS or w W M MYY FREEAAD fAOTABLP LMMAA SETBACK UW; I L _ COIAr7Y: CERTSY 1wr )HE 1TAP OR PLAT TD slwa RRS CER7Lr1C4T10r• \ .. A 1S MTDEO wars ALL sunilaRY REDIVEMWm FOR REVORDIRG A �- -�--' _v, i�, /, ♦ OesE1T - - RMREN AEAt tr LLC /.QL• DA RE9{MEtt REII. or AMY, RE s a Pa eis c rs3s OrBK AC 2e335 A'NiVOR SUMMON PLAT SAW AneII wim • chandler land Lu.rvey.mg 63 Adams Toilet Drhre, Came, North CamIcut, 27529 Phow 919.291-9163 oSH'CAR'•,•, � oe fir•, =_ �`�" �� - p ►"ram{;, ', ''A,r.�.�•r- •I"e�e�, ff WARREN REALTY, !�C PROPERTIES t 9Gii t• Bo' GA? SE?1E118Eft ra 2dX PRAECT/ mza+a Dw BY �°� CRAa2QT NAIE S+EW� ! D` SCAB: ?' - 60' 0 30 00 T20 7 DATE a.u.��_ ALERA.93ort0 ADW&W HAN4Ti COUwrr NORTH CARD -NA CITY OF DUNN NORTH CAROLINA Gd�ebeg"zsl Regular Meeting, January 27, 2026 Agenda Item(s): Ordinance to Extend the Corporate Limits, Voluntary Annexation Petition (ANX-07-25), Vann Lane (Step #3) Presenter(s): Justin Hembree, City Manager Responsible Staff: Justin Hembree, City Manager Action Item: Yes Attachment(s): 1) Public Hearing Notice 2) Ordinance to Extend the Corporate Limits of the City of Dunn 3) Exhibit "A" Purpose- a) Public Hearing: Consideration to Extend the Corporate Limits of the City of Dunn by the Voluntary Contiguous Annexation of 74.12 acres contained within PINs 1517-37- 0736.000, 1517-37-9653.000, and 1517-47-0665.000 at or around 396 Vann Lane and 611 Vann Lane. The contiguous annexation is being considered under NCGS 160A-31. b) Decision Background • Resolution Directing the Clerk to Investigate the Voluntary Annexation Petition ANX-07- 25 was adopted at the November 18, 2025 meeting. • The Clerk certified the Sufficiency of the Petition and the Resolution Fixing the Date of Public Hearing was adopted at the December 9, 2025 meeting. • The Public Hearing was published on January 16, 2026 in the Daily Record and posted on the principal bulletin board, as required. Budget Impact None Staff Recommendation(s) Adopt the Ordinance to Extend the Corporate Limits of the City of Dunn as presented and to assign ward. Suggested Motion (_s_) Motion to adopt the Ordinance to Extend the Corporate Limits of the City of Dunn by the Voluntary Contiguous Annexation of 74.12+/- acres contained within PINs 1517-37-0736.000, 1517-37-9653.000, and 1517-47-0665.000 at or around 396 Vann Lane and 611 Vann Lane as presented and to assign to Ward 1. Page 1 of 1 NOTICE OF PUBLIC HEARING ON REQUEST FOR ANNF,XATION The public will take notice that the Dunn City Council has called a Public Hearing at 6:30 p.m. on January 27, 2026 at the Dunn Municipal Building on the question of annexing the following described territory, requested by petition filed pursuant to G.S. 160A-58.1: BAREFOOT LAND &RENTAL INVESTMENTS, LLC ANX-07-25 74.12 +/- acres contained within PIN#1517-37-0736.000, 1517-37-9653.000, and 1517-47-0665.000 611 Vann Lane and 396 Vann Lane, Dunn NC (A metes and bounds description is available in the office of the City Clerk, Dunn Municipal Building, 401 E. Broad Street. Monday - Friday, 8 a.m. - 4 p.m.) Persons wishing to make comments, for or against, are requested to be present. Melissa R. Matti City Clerk 910-230-3501 1 / 16/2026 NOTICE OF PUBLIC HEARING ON REQUEST FOR ANNEXATION The public will take notice that the Dunn City Council has called a Public Hearing at 6:30 p.m. on January 27, 2026 at the Dunn Municipal Building on the question of annexing the following described territory, requested by petition filed pursuant to G.S. 160A-58.1: BAREFOOT LAND & RENTAL INVESTMENTS, LLC ANX-07-25 74.12 +/- acres contained within PIN#1517-37-0736.000, 1517-37-9653.000, and 1517-47-0665.000 611 Vann Lane and 396 Vann Lane, Dunn NC (A metes and bounds description is available in the office of the City Clerk, Dunn Municipal Building, 401 E. Broad Street. Monday - Friday, 8 a.m. - 4 p.m.) Persons wishing to make comments, for or against, are requested to be present. Melissa R. Matti City Clerk 910-230-3501 Advertise: January 16, 2026 Mayor William P. Elmore, Jr. CITY OF Mayor Pro Tern J. Wesley Sills DUNNCouncil Members April Gaulden NORTH C A R O L I N A Raquel McNeil 401 E Broad St . PO Box 1065 . Dunn, North Carolina 28335 Billy Tart Alan Hargis (910) 230-3500 - CityofDunn.org Dr. David L. Bradham City Manager Justin Hembree AN ORDINANCE TO EXTEND THE CORPORATE LIMITS OF THE CITY OF DUNN, NORTH CAROLINA ANX-07-2 5 WHEREAS, the City Council of the City of Dunn has been petitioned under Part 4 of Article 4A of Chapter 160A of the General Statutes to annex the area described below; and WHEREAS, the City Council has by resolution directed the City Clerk to investigate the efficiency of the petition; and WHEREAS, the City Clerk has certified the sufficiency of the petition and a public hearing on the question of this annexation was held at the Dunn Municipal Building at 6:30 p.m. on January 27, 2026, after due notice by publication on January 16, 2026; and WHEREAS the City Council finds that the area described therein meets the requirements of Part 4 of Article 4A of Chapter 160A of the General Statutes. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Dunn, North Carolina that: Section 1. By virtue of the authority granted by Part 4 of Article 4A of Chapter 160A of the General Statutes, the following described territory is hereby annexed and made part of the City of Dunn as of January 27, 2026: V6ere communi� 6!yins! Property owned by County of Harnett ANX-07-2025: 74.12 +/- acres within PINS 1517-37-0736.000, 1517-37-9653.000) and 1517-47-0665.000 Map Recorded: Book # , Page # Exhibit "A" Legal metes and bounds Description Section 2. Upon and after January 27, 2026, the above -described territory and its citizens and property shall be subject to all debts, laws, ordinances, and regulations in force in the City of Dunn and shall be entitled to the same privileges and benefits as other parts of the City of Dunn. Said territory shall be subject to municipal taxes according to G. S. 160A- 58.1. Section 3. The Mayor of the City of Dunn shall cause to be recorded in the office of the Register of Deeds of Harnett County, and in the office of the Secretary of State at Raleigh, North Carolina, an accurate map of the annexed territory, described in Section 1 above, together with a duly certified copy of this ordinance. Such a map shall also be delivered to the County Board of Elections, as required by G. S. 163-288.1. Adopted this 2Th day of January, 2026. William P. Elmore, Jr. Mayor Attest: Melissa R. Matti, CMC, NCCMC City Clerk I, Melissa R. Matti, City Clerk of the City of Dunn, do hereby certify that the foregoing is a true and accurate copy of an annexation ordinance duly adopted by the City Council of the City of Dunn, North Carolina, at a meeting held January 27, 2026, at 6:30 p.m. at the City Hall in the City of Dunn. IN WITNESS WHEREOF, I have here unto set my hand and have caused the official corporate seal of said City to be affixed, this the 27th day of January, 2026. Melissa R. Matti, CMC, NCCMC City Clerk "EXH I BIT A" Metes & Bounds for Seasons — Barefoot Property Being all of three tracts located in City of Dunn, Averasboro Township, Harnett County, NC Being all of the following properties: BAREFOOT LAND AND RENTAL INVESTMENTS, LLC 1517-37-0736.000 - DB 4177, PG 880 1517-37-9653.000 - DB 4177, PG 880 1517-47-0665.000 - DB 4177, PG 880 And more particularly described as follows: COMMENCING at a point, said point being the northeastern corner of James Ricky Tripp & Elsie Marie Tripp Hardee as recorded in Deed Book 2896, Page 130, Harnett County Registry and having coordinates of N 576,413.56 and E 2,112,147.09 NC GRID NAD 83 (2011); thence running as a tie North 48 degrees 10 minutes 17 seconds West to a point and N 47 degrees 37 minutes 41 seconds West, 167.78'to the POINT OF BEGINNING; thence leaving said point and running the following bearings and distances: North 47 degrees 54 minutes 00 seconds West, 192.89'to a point; thence North 44 degrees 09 minutes 00 seconds West, 1,171.10'to a point; thence North 44 degrees 13 minutes 00 seconds West, 706.00'to a point; thence along the run of Secon Branch the following bearings and distances: North 88 degrees 43 minutes 00 seconds East, 27.50'to a point; thence North 77 degrees 06 minutes 00 seconds East, 204.11'to a point; thence South 46 degrees 20 minutes 00 seconds East, 47.80'to a point; thence North 78 degrees 52 minutes 00 seconds East, 105.29'to a point; thence North 67 degrees 14 minutes 45 seconds East, 86.15'to a point; thence North 79 degrees 17 minutes 00 seconds East, 114.08'to a point; thence South 87 degrees 25 minutes 00 seconds East, 99.86'to a point; thence North 75 degrees 23 minutes 00 seconds East, 206.94'to a point; thence South 87 degrees 28 minutes 00 seconds East, 68.20'to a point; thence North 89 degrees 13 minutes 00 seconds East, 113.56'to a point; thence North 06 degrees 14 minutes 00 seconds East, 57.98'to a point; thence South 83 degrees 29 minutes 31 seconds East, 129.60'to a point; thence North 56 degrees 21 minutes 16 seconds East, 158.31'to a point; thence leaving said Secon Branch and continuing South 03 degrees 27 minutes 12 seconds East, 265.14'to a point; thence South 06 degrees 11 minutes 12 seconds East, 1,087.04'to a point; thence South 06 degrees 11 minutes 12 seconds East, 477.57'to a point; thence South 54 degrees 18 minutes 04 seconds East, 290.37'to a point; thence South 53 degrees 30 minutes 39 seconds East, 229.11'to a point; thence North 48 degrees 24 minutes 00 seconds East, 874.52'to a point; thence North 48 degrees 24 minutes 00 seconds East, 233.40'to a point; thence South 60 degrees 02 minutes 00 seconds East, 554.82'to a point; thence South 44 degrees 52 minutes 00 seconds West, 409.10'to a point; thence North 49 degrees 50 minutes 00 seconds West, 460.65'to a point; thence North 43 degrees 23 minutes 30 seconds East, 68.53'to a point; thence North 46 degrees 32 minutes 17 seconds West, 131.15'to a point; thence South 44 degrees 58 minutes 43 seconds West, 315.70'to the POINT OF BEGINNING, containing 74.12 acres, more for less. PETITION FOR ANNEXATION - CONTIGUOUS PROPERTY INDIVIDUAL DATE: 5107 �.{j TO: The City of Dunn City Council Re: Petition Requesting Annexation Attn: Planning Director, Planning Dept. By the City of Dunn P. O. Box 1065 Contiguous Property Dunn, NC 28335 Pursuant to the provisions of Section 160A-31 of the General Statutes of the State of North Carolina, we the undersigned owners of all the real property described below do hereby request that said property Located at: 611 VANN LN DUNN, NC 28334 and 396 VANN LN DUNN, NC 28334 PIN number(s) 1517-37-0736.000, 1517-37-9653.000, and 1517-47-0665.000 , Lot(s) be annexed into the City of Dunn. We certify: that the property to be annexed is contiguous to the present corporate limits of the City of Dunn and the annexation would, therefore, be a contiguous annexation; that a legal description (metes and bounds -electronically submitted) is attached as "Exhibit A" and a map of said property showing the proposed contiguous area in relation to the primary corporate limits of the City of Dunn is attached and denoted as "Exhibit B". All individuals whose names appear on the deed to the property shall sign. Barefoot Land & Rental Investments, a North Carolina Limited Liability Company 1. Sharon Elaine Barefoot Registered Agent Printed Name Signature 3201 Meadowlark Rd Dunn NC 28334 Address/Contact Information 2. Printed Name Signature Address/Contact Information 3. Printed Name Signature Address/Contact Information It" It III 11111/hrrrr Sworn to and subscribed by me on this the " day of �0 - '-0.5,'- or N q `N= 0 S Notary Publi ' � ,� �Z- My commission expires: . '� • �20 01'- �Z`, �eL I G •• s f �L Date received Planning Dept. —t By: 6�61d &t. Date received City Clerk: By: Annexation Fee: $125.00/per parcel (j Fee paid $ _ .00 Naj -1 Receipt # qC4 Harnett C 0 U N T Y i County Boundary M CONS City Limits R-20 Road Centerlines R-7 Harnett.org/GIS Parcels RA-20M August 28, 2025 RA-30 RA-40 R M ETJ EXHIBIT B PIN 1517-37-0736.000 N w E S -i Feet 0 680 Harnett C 0 U N T Y Harnett.org/GIS August 28, 2025 County Boundary City Limits Road Centerlines Parcels CONS R-20 R-7 RA-20M RA-30 W RA-40 RM EXHIBIT B L ETJ PIN 1517-37-9653.000 N W—<)-- E S MMMMMMMMK====::= Feet 0 680 -,.,,Harnett County Boundary CONS C 0 U N T Y H CAR0LINA �] City Limits R-20 Road Centerlines R-7 Harnett.org/GIS parcels RA-20M August 28, 2025 RA-30 RA-40 j RM EXHIBIT B ET' PIN 1517-47-0665.000 { 1 N W E s ::3 Feet 680 -.. Harnett C 0 U N T Y PID: 021517 0106 PIN: 1517-37-0736.000 Account Number: 1500053655 Owner: BAREFOOT LAND AND RENTAL INVESTMENTS LLC Mailing Address: 3201 MEADOWLARK RD DUNN, NC 28334-9728 Physical Address: 611 VANN LN DUNN, NC 28334 ac Description: 63.32 AC GEORGE GLOVER Surveyed/Deeded Acreage: 63.32 Calculated Acreage: 63.2 Deed Date: Deed Book/Page: 4177 - 0880 Plat(Survey) Book/Page: - Last Sale: 2022 - 12 Sale Price: $0 Qualified Code: A Vacant or Improved: Transfer of Split: T Actual Year Built: 1950 Heated Area : 1124 SgFt Building Count : 1 Harnett County QIS Building Value: $52897 Parcel Outbuilding Value: $660 Parcel Land Value: 333560 Market Value: $387117 Deferred Value: $243870 Total Assessed Value: $143247 Zoning: RA-20M - 54.16 acres (85.7%), SINGLE FAMILY & AGRICULTURAL - 9.04 acres (14.3%) Zoning Jurisdiction: Dunn, Harnett County Wetlands: Yes FEMA Flood: Minimal Flood Risk Within 1 ml of Agriculture District: Yes Elementary School: Dunn Elementary Middle School: Dunn Middle High School: Triton High Fire Department: Dunn EMS Department: Medic 15, D15 EMS Law Enforcement: Harnett County Sheriff Voter Precinct: West Averasboro County Commissioner: William Morris School Board Member: Joey Powell I r6�'`1 La pip -411-1[usd Harnett �--, C0U_NTY PID:021518 0189 PIN: 1517-47-0665.000 Account Number: 1500053655 Owner: BAREFOOT LAND AND RENTAL INVESTMENTS LLC Mailing Address: 3201 MEADOW LARK RD DUNN, NC 28334-9728 Physical Address: VANN LN DUNN, NC 28334 ac Description: 5 ACRES MINNIE BYRD Surveyed/Deeded Acreage: 5 Calculated Acreage: 5.18 Deed Date: Deed Book/Page: 4177 - 0880 Plat(Survey) Book/Page: - Last Sale: 2022 - 12 Sale Price: $0 Qualified Code: A Vacant or Improved: Transfer of Split: T Actual Year Built: Heated Area : SgFt Building Count: 0 Harnett County GIS Building Value: $0 Parcel Outbuilding Value: $0 Parcel Land Value: 34590 Market Value: $34590 Deferred Value: $30450 Total Assessed Value: $4140 Zoning: R-20 SINGLE FAMILY - 1.29 acres (24.9%), RA-20M - 3.89 acres (75.1 %) Zoning Jurisdiction: Dunn, Harnett County Wetlands: Yes FEMA Flood: Minimal Flood Risk Within 1ml of Agriculture District: No Elementary School: Dunn Elementary Middle School: Dunn Middle High School: Triton High Fire Department: Dunn EMS Departmew Medic 15, D15 EMS Law Enforcement: Harnett County Sheriff Voter Precinct: West Averasboro County Commissioner: William Morris School Board Member: Joey Powell Harnett (- C 0 U N T Y PID: 021517 0021 PIN: 1517-37-9653.000 Account Number: 1500053655 Owner: BAREFOOT LAND AND RENTAL INVESTMENTS LLC Mailing Address: 3201 MEADOWLARK RD DUNN, NC 28334-9728 Physical Address: 396 VANN LN DUNN, NC 28334 ac Description: 5 ACRES JEWEL LEE Surveyed/Deeded Acreage: 5 Calculated Acreage: 5.55 Deed Date: Deed Book/Page: 4177 - 0880 Plat(Survey) Book/Page: - Last Sale: 2022 - 12 Sale Price: $0 Qualified Code: A Vacant or Improved: Transfer of Split: T Actual Year Built: Heated Area : SgFt Building Count : 0 op Print this page) Harnett County GIS Building Value: $0 Parcel Outbuilding Value: $0 Parcel Land Value: 49550 Market Value: $49550 Deferred Value: $22880 Total Assessed Value: $26670 Zoning: R-20 SINGLE FAMILY - 1.64 acres (29.51 %), RA-20M - 3.91 acres (70.49%) Zoning Jurisdiction: Dunn, Harnett County Wetlands: Yes FEMA Flood: Minimal Flood Risk Within 1ml of Agriculture District: No Elementary School: Dunn Elementary Middle School: Dunn Middle High School: Triton High Fire Department: Dunn EMS Departmen Medic 15, D15 EMS Law Enforcement: Harnett County Sheriff Voter Precinct: West Averasboro County Commissioner: William Morris School Board Member: Joey Powell CITY OF DUNN NORTH CAROI.INA GdAere begmxl Regular Meeting, January 27, 2026 Agenda Item(s): Capital Project Ordinance Amendment II (Close Out) - Tracy Lane W&S Extension Project Presenter(s): Cary McNallan, Finance Director Responsible Staff: Billy Cottle, Water & Sewer Collections Manager Action Item: Yes Attachment(s): 1) Capital Project Ordinance Amendment II 2) Budget Amendment Background This project was listed in the FY24 Capital Improvements Plan. The project included over 600 linear feet of 6-inch water main and appurtenances and over 500 linear feet of gravity sewer main and appurtenances along Tracy Lane to serve five (5) parcels in the City. On July 11, 2023, the City Council approved a Capital Project Ordinance of $56,400 to fund the engineering costs of the project. The engineers, L.E. Wooten and Company, estimated the construction costs at $253,500 and a total project cost of $361,400. The total budget was approved and adopted at the September 12, 2023, Council meeting. The project has now been completed, and the financial aspect needs to be closed out. The remaining funds of $88,620 will be returned to the General Fund to partially pay back the advanced loan that was approved as one of the funding sources for this project. In order to properly account for the funding and expenditures related to this project, an amendment to the previously adopted capital project ordinance is required to be adopted to advance the project to the construction phase Staff Recommendation(s) Staff recommend that the City Council approve a Capital Project Ordinance Amendment that will close out this project. Page 1 of 2 Budget Impact Water and Sewer Fund debt will be reduced by $35,448 and $53,172, respectively, which will in turn increase the General Fund cash reserves. Suggested Motion(s) Motion to approve the attached Capital Project Ordinance Amendment and Budget Amendment for the Tracy Lane Water and Sewer Extension Project and authorize the partial repayment of funds that were borrowed from the General Fund. Page 2 of 2 18$7 Capital Project Ordinance Amendment II Tracy Lane Water and Sewer Extension WHEREAS, the City Council for the City of Dunn, on June 13, 2023, adopted the annual budget ordinance number 02023-13 for the fiscal year beginning July 1, 2023; and, WHEREAS, the City Council, on June 13, 2023, adopted the capital improvements plan for fiscal year 2023-24; and, WHEREAS, on July 11, 2023, the City Council adopted a capital project ordinance for the engineering portion of this project at a total cost of $56,400; and, WHEREAS, on September 12, 2 02 3, it was necessary to amend the capital project ordinance to include the construction costs and additional funding of $305,000 for the project; and, WHEREAS, the project is now completed, and the final project budget needs to be amended to close out the remaining funds; and, NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUNN, NC, PURSUANT TO SECTION 13.2 OF CHAPTER 159 OF THE GENERAL STATUTES OF NORTH CAROLINA, THAT: Section 1: Engineering and construction services for the Tracy Lane Water and Sewer Extension Project is authorized to be undertaken until all project activity is completed, and is adopted as follows: Section 2. The amount of funding appropriated, and amounts budgeted for project costs are approved as follows: Previous Budget Revised Funding Appropriations Budget Amendments Budget Installment Financing $ 305,000 $ - $ 305,000 Water and Sewer Funds $ 56,400 $ - $ 56,400 Total Funding $ 361,400 $ - $ 361,400 Expenditures: Contingency $ 50,700 $ (50,700) $ - Engineering $ 56,400 $ 1,981 $ 58,381 Construction $ 254,300 $ (39,901) $ 214,399 Operating Trf to Water Fund $ - $ 35,448 $ 35,448 Operating Trf to Sewer Fund $ - $ 53,172 $ 53,172 Total Expenditures $ 361,400 $ - $ 361,400 'Mere communi� 4ns! • 1s87 Section 3: Funds may be advanced from the Water and Sewer Fund for the purpose of making payments as due. Section 4: The Finance Director is directed to report periodically on the financial status of each project element in Section 2 and on the total revenues received or claimed. Section 5: Within five (5) days after this ordinance is adopted, the City Clerk shall file a copy of this ordinance with the Finance Director. Section 6: This capital project ordinance shall be effective immediately. Duly adopted this 27th day of January 2026. Attest: Melissa R. Matti City Clerk William P. Elmore, Jr. Mayor ()here communihJ. 4ns! CITY OF DUNN BUDGET ORDINANCE AMENDMENT Department: Water&Sewer Budget Amendment#: 17 FISCAL YEAR ENDING: 6/30/2026 Date: 1/27/2026 Appropriation Amount of Appropriation FUND Acct# LINE ITEM DESCRIPTION Before Amendment After Amendment Increase/(Decrease) Amendment Tracy Lane Proj 070-0930-0002 Contingency 50,700.00 (50,700.00) $ - Tracy Lane Proj 070-0930-4000 Engineering 56,400.00 1,981.19 58,381.19 Tracy Lane Proj 070-0930-7600 Construction 254,300.00 (39,901.41) 214,398.59 Tracy Lane Proj 070-0929-8529 Operating Transfer to Water Fund 29 - 35,448.09 35,448.09 Tracy Lane Proj 070-0930-8530 Operating Transfer to Sewer Fund 30 - 53,172.13 53,172.13 Water 029-0900-9742 Tracy Lane Water Ext-Principal pymt for Gen Fnd Advance 23,183.00 34,008.00 57,191.00 Sewer 030-0900-9742 Tracy Lane Sewer Ext-Principal pymt for Gen Fnd Advance 34,775.00 51,012.00 85,787.00 Water 029-0900-9743 Tracy Lane Water Ext-Interest pymt for Gen Fnd Advance 4,996.00 1,440.09 6,436.09 Sewer 030-0900-9743 Tracy Lane Sewer Ext-Interest pymt for Gen Fnd Advance 7,494.00 2,160.13 9,654.13 EXPENDITURE TOTAL: $ 431,848.00 $ 88,620.22 $ 520,468.22 Appropriation Amount of Appropriation FUND Acct# LINE ITEM DESCRIPTION Before Amendment After Amendment Increase/(Decrease) Amendment Water 029-0369-0070 Operating Transfer fr Tracy Lane Proj Fund 70 $ - $ 35,448.09 $ 35,448.09 Sewer 030-0369-0070 Operating Transfer fr Tracy Lane Proj Fund 70 $ - $ 53,172.13 $ 53,172.13 $ - • $ - $ - $ - $ - $ - REVENUE TOTAL: $ - $ 88,620.22 $ 88,620.22 CERTIFICATION: I certify this requested budget amendment was approved by the City Council on: City Manager: 1/27/2026 Finance Director: 1/27/2026 JUSTIFICATION: Close out completed Tracy Lane Water and Sewer extension project and return advanced loan funds to the General Fund. FUNDING SOURCE: General Fund Loan Advance funds. CITY OF II �8s� NORTH CAROLINA PIA-et?,ce)-Atmait4 4egii c/ Regular Meeting, January 27, 2026 Agenda Item(s): Pearsall Street Project - NCDEQ Additional Funding Presenter(s): Cary McNallan, Finance Director Responsible Staff: Cary McNallan, Finance Director Action Item: Yes Attachment(s): 1) Resolution Background The Pearsall Street Culvert project is currently funded with $970,340 of grant funds from the North Carolina Department of Environmental Quality (NCDEQ). The remaining $1,685,310 project budget is currently budgeted from operating transfers from the General Fund, Water and Sewer Fund, and Stormwater Fund. The city requested additional funding from NCDEQ and has recently received a funding offer modification letter awarding the city with $1,673,969 additional SRP-SW-ARP-0030 grant funds. Staff Recommendation(s) Staff are recommending that the city council approve the acceptance of these grant funds. Budget Impact The additional grant funds will allow us to return previous project funding of$426,208 to the General Fund and return $230,102 to the water and sewer funds. It will also eliminate the need to borrow funds for the project. Suggested Motion(s) Motion to adopt the resolution accepting the $1,673,969 of SRP-SW-ARP-0030 grant funds from NCDEQ for the Pearsall Street Culvert Project. Page 1 of 1 p.m' CITY OF Ind D 887 NORTH CAROtINA RESOLUTION BY GOVERNING BODY OF RECIPIENT City of Dunn Juniper Creek Area Stormwater System Project WHEREAS, the American Rescue Plan Act (ARPA), funded from the State Fiscal Recovery Fund, was established in Session Law (S.L.) 2021-180 to assist eligible units of local government with meeting their drinking water and/or wastewater and/or stormwater infrastructure needs, and WHEREAS, on February 28, 2024, the North Carolina Department of Environmental Quality (NCDEQ) offered, to the City of Dunn, NC, LASII ARPA funding in the amount of $490,340 to fund the construction of the Pearsall Street Culvert project, and WHEREAS, on January 9, 2026,the North Carolina Department of Environmental Quality(NCDEQ) has provided an approved funding offer modification letter, to the City of Dunn, NC, LASII ARPA awarding additional SRP-SW-ARP-0030 grant funds in the amount of $1,673,969 to fund the construction of the Pearsall Street Culvert project, and WHEREAS, these funds will be administered by the Division of Water Infrastructure (DWI), and WHEREAS, the City of Dunn intends to construct said project in accordance with the approved plans, specifications, and scope of work, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUNN: That the City of Dunn does hereby accept the afore mentioned ARPA grant #SRP-SW-ARP- 0030 funding offer modification of$1,673,969. That the City of Dunn does hereby give assurance to the North Carolina Department of Environmental Quality that any Conditions or Assurances contained in the Award Offer will be adhered to, has substantially complied or will substantially comply with all Federal, State and local laws, rules, regulations, and ordinances applicable to the project and to Federal and State grants and loans pertaining thereto. That City Manager Justin Hembree, the Authorized Official, and successors so titled, are hereby authorized and directed to furnish such information as the appropriate State agency may request in connection with this project; to make the assurances as contained above; and to execute such other documents as may be required by the Division of Water Infrastructure. Adopted this the 27th day of January 2026 at City of Dunn, North Carolina. William P. Elmore, Jr. ATTEST: Mayor Melissa R. Matti, City Clerk ?Lilere cammuniy h jins! wog CITY OF M DuNN 1887 NORTH CAROLINA Gtl/ier&ce-frtoatst4 kgi s� Regular Meeting,January 27, 2026 Agenda Item(s): City Manager's Report Presenter(s): Justin Hembree, City Manager Responsible Staff: Justin Hembree, City Manager Action Item: No Attachment(s): None The City Manager will provide updates. Page 1 of 1 Mayor William P.Elmore,Jr. CITY OF Mayor Pro Tem April Gaulden „� D 1UN-N Council Members 1887 J.Wesley Sills Raquel McNeil NORTH CAROLINA Billy Tart 401E Broad St .PO Box 1065 .Dunn,North Carolina 28335 Alan Hargis (910)230-3500• CityofDunn.org Dr.David L.Bradham City Manager Justin Hembree MEMORANDUM January 14, 2026 To: Honorable Mayor,City Council Members From: Cary McNallan,Finance Director Subject: December 2025 Financial Report(unaudited) • Cash & Investment Balances: Cash and investment balances for all funds totaled $6,131,887 as of December 31,2025,compared to$8,401,471 a year ago. The decrease is due to a delay in state grant reimbursements of water&sewer project expenditures. The city also has a balance of$5,920,711 in the Eastside Pump Station Construction account. Cash Balances by Fund I $14,000,000 $12,000,000 510,000,000 $8,000,000 56,000,000 54,000,000 SO _ -S2,000,000 e y014 .�J1b//// �p vbe ye ti0'tiy... ,p1: L• • n. � 11. ._. a __.�$4oa000®„c �\''1\ �\„'\ \�'~� \tip\ \''1\ o„,„ y\�~\._ 1 �y �o\ �'\ -$6,000,000 -S8,000,000 is General&Grant Funds+Misc Projs •Powell Bill/Street Resurf •Sewer/Water Ops&Projs(Swr only FY26) Stormwater Fund •Water Ops&Projs is Water SRF Fund ■Sewer SRF Fund Cash and Investments I$2 :; 91 % $4,537,830, 35.9% $5,920,711,`_..---_ $70,112,0.6% 46.8% NC Capital Mgmt Trust■First Citizen Bank •BAN Constr Acct =KS Trust Investments •Misc Other %(1tiere communi y L jins! • The benchmark for this period is 50.0% of the budget, however,revenues and expenditures will continue to be recorded for the next few weeks. • General Fund Property Taxes collected by the County for the month of November 2025 totaled $1,219,541 compared to $1,308,343 for November 2024. FY26 year to date property tax revenues received are$2,546,345. Our total estimated taxes for FY26 are$5,931,100. These totals include taxes for Property,Motor Vehicles,&Downtown District. Ad Valorem Tax Revenues by Month Collected $2,500,000.00 $2,000,000.00 $1,500,000.00 $1,000,000.00 $500,000.00 S- IIII* IuIIIi I 1 1 1 ■ 11 ■ I I ¢> d' CC > C Ln RG > Q f0 C N a 0 Cr N ti tII Q o z c `� a 2 < V z ti LL Q 2 , -N a , o z • For Sales Taxes,our October receipts were$334,023. This is$58,537 more than the same period last year. Our budget for sales tax revenue for FY26 is set at$3,450,000,and so far,this year we have recorded $1,317,560, or 38.2%. Sales Tax Reports from the Department of Revenue are provided at least two months behind actual collections. Our next sales tax deposit will be February 15th. Sales Tax Collections by Month $400,o00.00 $350,000.00 $300,000.00 $250,000.00 $200,000.00 . _- .rW __ S 150,000.00 $100,000.00 - __ $50,000.00 .1_ 1 $- 0 O RUi N v eS a > C a V >p '-' N a ti C. >4 C t Q z o '� E N G cn o Z o LL Q - . , 0 lQ � • Building Permit and Development Fees for the month of December were$8,876. To date we have collected a total of$99,059 or 53.8% of the budget. At the same time last year, our year-to-date revenue was$69,892. The budget for the 2026 budget year is$184,000. • The following charts and graphs include Budgeted and Actual, Revenue and Expenditures for the General Fund,Water&Sewer Fund,Stormwater Fund,and the Powell Bill Fund. FY26 YTD Actuals vs Budgets-Revenues FY25 YTD Actuals vs Budgets-Revenues All Funds-FY25 December FY26 All Funds-FY24 December FY25 Revenue Category/Fund FY26 Budget MTD Actuals YTD Actuals %of Bdgt Revenue Category/Fund FY25 Budget MTD Actuals YTD Actuals %of Bdgt GF-Ad Valorem Taxes 5,931,100.00 40,528.61 2,546,345.44 42.9% GF-Ad Valorem Taxes 5,759,728.00 38,235.76 2,464,566.78 42.8% GF-Sales Taxes 3,481,000.00 323,671.16 996,478.96 28.6% GF-Sales Taxes 3,387,400.00 283,029.31 862,662.23 25.5% GF-Other Taxes 783,450.00 211,366.16 213,075.69 27.2% GF-Other Taxes 718,150.00 218,117.16 219,840.39 30.6% GF-Licenses&Permits 564,250.00 29,946.75 311,820.61 55.3% GF-Licenses&Permits 563,650.00 54,396.95 266,396.33 47.3% GF-Charges for Services 1,698,779.00 152,634.09 846,817.60 49.8% GF-Charges for Services 1,566,162.73 143,377.67 815,659.43 52.1% GF-Other Revenue 2,525,978.53 63,957.31 407,026.51 16.1% GF-Other Revenue 4,702,346.56 76,409.12 521,763.05 11.1% GF-Operating Trfs In 106,344.00 - 106,342.00 100.0% GF-Operating Trfs In 2,047,889.00 - - 0.0% General Fund Totals 15,090,90153 822,104.08 5,427,906.81 36.0% General Fund Totals 18,745,326.29 813,566.97 6,150,888.21 27.6 Utility Chgs-Water 4,777,600.00 393,513.76 2,457,370.54 51.4% W&S Utility Chgs-Water 4,362,325.00 353,358.66 2,055,035.75 47.1% Utility Chgs-Sewer - - - #DIV/0! W&S Utility Chgs-Sewer 3,897,450.00 318,460.58 1,786,633.80 45.8% Water Utility Other Rev 408,748.45 21,130.46 133,981.67 32.8% W&S Utility Other Rev 3,114,070.06 23,942.40 245,999.36 7.9% Water Utility Oper Trfs In - - - #DIV/0! W&S Utility Oper Trfs In - - - #DIV/0! Water Fund Totals 5,186,348.45 414,644.22 2,591,352.21 50.0% W&S Fund Totals 11,373,845.06 695,761.64 4,087,668.91 35.9% Utility Chgs-Water - - - #DIV/0! W&S Utility Chgs-Water - - - #DIV/0! Utility Chgs-Sewer 5,071,232.00 412,953.49 2,300,218.87 45.4% W&S Utility Chgs-Sewer - - - #DIV/0! Sewer Utility Other Rev 493,125.17 1,251.01 20,680.88 4.2% W&S Utility Other Rev - - - #DIV/0! Sewer Utility Oper Trfs In - - - #DIV/0! W&S Utility Oper Trfs In - - - #DIV/0! Sewer Fund Totals 5,564,357.17 414,204.50 2,320,899.75 41.7% W&S Fund Totals - - - #l?IV/0! Stormwater Revenues 661,163.69 23,186.56 307,413.84 46.5% Stormwater Revenues 524,382.11 10,906.07 264,784.33 50.5% Stormwater Totals 661,163.69 23,186.56 307,413.84 46.5% Stormwater Totals 524,382.11 10,906.07 264,784.33 50.5% Powell Bill Revenues 1,734,554.00 193,815.98 652,239.95 37.6% Powell Bill Revenues 974,000.00 191,811.75 620,780.42 63.7% Powell Bill Totals 1,734,554.00 193,815.98 652,239.95 37.6% Powell Bill Totals 974,000.00 191,811.75 620,780.42 63.7% Budget to Actual-FY25 Revenues GF-Ad Valorem Taxes IIIIMIIIIIMMERIp GF-Sales Taxes GF-Other Taxes 16.0., GF-Licenses&Permits i.= GF-Charges for Services 11111111111116....... GF-Other Revenue Mr GF-Operating Trfs In Utility Chgs-Water Utility Chgs-Sewer IMIIIIMMINIIMMI Water Utility Other Rev ` „. Sewer Utility Other Rev Water Utility Oper Trfs In Sewer Utility Oper Trf s In Stormwater Totals i.in Powell Bill Revenues wow $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 ■YTD Actuals ■FY26 Budget FY26 YTD Actuals vs Budgets-Expenditures FY25 YTD Actuals vs Budgets-Expenditures Ail Funds-FY25 December FY26 All Funds-FY24 December FY25 Departments/Funds FY26 Budget MID Actuels YTD Actuals %of Bdgt Departments/Funds FY25 Budget MID Actuals YTD Actuals %of fdt?t GeneralGovt 3,390,287.61 169,955.20 1,665,744.07 49.1% GeneralGovt 3,156,827.15 153,577.71 1,324,228.31 41.9% Public Safety 5,538,040.00 364,859.11 2,746,454.39 49.6% Public Safety 5,345,922.83 349,786.33 2,724,440.46 51.0% Public Works 2,049,440.30 158,363.32 1,039,032.91 50.7% Public Works 2,012,515.26 133,762.20 1,003,733.80 49.9% Sanitation&Waste Removal 876,000.00 75,185.37 391,992.20 44.7% Sanitation&Waste Removal 857,000.00 - 340,278.12 39.7% Parks,Recreation,&Cemetery 1,739,820.62 132,727.76 1,080,525.68 62.1% Parks,Recreation,&Cemetery 1,690,341.75 117,038.62 856,945.08 50.7% Library 5,245.00 547.40 3,315.90 63.2% Library 6,006.00 - 2,469.25 41.1% GF Debt Service 806,708.00 38,468.00 529,905.47 65.7% GF Debt Service 2,529,718.00 52,350.66 612,510.97 24.2% GF Operating Trfs Out&Resrvs 685,360.00 12,650.00 442,973.31 64.6% GF Operating Trfs Out&Resrvs 3,146,995.30 47,400.00 178,729.30 5.7% General Fund Totals 15,090,901.53 952,756.16 7,899,943.93 52.3% General Fund Totals 18,745,326.29 853,915.52 7,043,335.29 37.6% WaterAdmin&Finance 1,080,028.53 35,355.70 325,763.73 30.2% W&SAdmin&Finance 1,224,657.73 74,881.95 633,517.33 51.7% Water Distribution/Collection 1,110,303.92 64,627.63 681,135.40 61.3% W&S Distribution/Collection 2,798,726.34 129,701.32 1,499,665.06 53.6% Water Treatment Plant 2,101,159.00 139,083.75 944,925.50 45.0% Water Treatment Plant 2,237,896.69 115,969.98 930,850.67 41.6% Sewage Treatment Plant - - - #DIV/0! Sewage Treatment Plant 2,113,296.22 116,093.11 1,132,439.68 53.6% Water Debt Service 894,857.00 - 179,297.96 20.0% W&S Debt Service 1,671,593.00 1,214.97 316,020.96 18.9% Water Operating Trfs Out&Resrvs - - - #DIV/0! W&S Operating Trfs Out&Resrvs 1,327,675.08 - - 0.0% Water Fund Totals 5,186,348.45 239,067.08 2,131,122.59 41.1% W&S Fund Totals 11,373,845.06 437,861.33 4,512,493.70 39.7% Sewer Admin&Finance 934,269.79 37,940.69 354,099.39 37.9% W&SAdmin&Finance - - - #DIV/0! Sewer Distribution/Collection 1,054,551.38 54,943.44 445,532.68 42.2% W&S Distribution/Collection - - #DIV/0! Water Treatment Plant - - - #DIV/0! Water Treatment Plant - - - #DIV/0! Sewage Treatment Plant 2,167,809.00 142,397.37 1,100,635.90 50.8% Sewage Treatment Plant - - #DIV/0! Sewer Debt Service 1,588,413.00 - 144,101.54 9.1% W&S Debt Service - - #DIV/0! Sewer Operating Trfs Out&Resrvs 14,772.00 - - 0.0% W&S Operating Trfs Out&Resrvs - - - #DIV/0! Seaver Fund Totals 5.759,815.17 235,281.50 2,044,369.51 35.5% W&S Fund Totals - - - #DIV/Ot Stormwater Operations 444,650.69 1,089.19 33,275.08 7.5% Stormwater Operations 427,751.61 9,682.15 211,357.01 49.4% Stormwater Debt Service 177,303.00 - 2,777.70 1.6% StormwaterDebtService 52,630.00 - 2,754.92 5.2% St/W Operating Trfs Out&Resrvs 39,210.00 - 29,753.01 75.9% St/W Operating Trfs Out&Resrvs 44,000.50 - 0.50 0.0% Stormwater Totals 661,163.69 1,089.19 65,805.79 10.0% Stormwater Totals 524,382.11 9,682.15 214,112.43 40.8% Powell Bill Operations 1,519,302.00 3,239.58 1,447,168.28 95.3% Powell Bill Operations 308,747.00 2,256.07 17,301.81 5.6% Powell Bill Debt Service 215,252.00 - 107,625.88 50.0% Powell Bill Debt Service 665,253.00 - 107,625.88 16.2% PB Operating Trfs Out&Resrvs - - - #DIV/0! PB Operating Trfs Out&Resrvs - - - #DIV/0! Powell BHA Totals 1,734,554.00 3,239.58 1,554,794.16 89.6% Powell Bill Totals 974,000.00 2,256.07 124,927.69 12.8% Budget to Actual-FY26 Expenditures General Govt Public Safety Public Works Sanitation&Waste Removal Parks,Recreation,&Cemetery Library , GF Debt Service GF Operating Trfs Out&Resrvs WaterAdmin&Finance Sewer Admin&Finance Water Distribution/Collection Sewer Distribution/Collection Water Treatment Plant Sewage Treatment Plant Water Debt Service Sewer Debt Service Water Operating Trfs Out&Resrvs Sewer Operating Trfs Out&Resrvs , Stormwater Operations Stormwater Debt Service St/W Operating Trfs Out&Resrvs Powell Bill Operations Powell Bill Debt Service PB Operating Trfs Out&Resrvs so $1,000,000 $2,000,000 53,000,000 $4,000,000 $5,000,000 $6,000,000 Dunn Capital Project Summary Report as of: 12/31/2025 LTD=Life to Date Project LTD Actual LTD Actual Current Funding Budget %of Bdgt Grant Grant% Proj#-Description St Proi# Budget FundingExpenditures Encumbrances Less Exp/Enc Balance Expended Funds of pro' General Govt Projects Proj 77-SCIF Grants 22-SCIF-10802-01&02 650,000.00 721,939.88 152,674.01 - 569,265.87 497,325.99 23.5% 650,000.00 100.0% Proj 100-Paving Project N/A 2,100,000.00 2,100,000.00 1,854,175.08 217,837.59 27,987.33 27,987.33 88.3% - o.o% Proj 102-FY24 Gen Govt Veh&Eq Project N/A 1,093,272.59 703,920.90 703,920.90 271,416.87 (271,416.87) 117,934.82 64.4% - 0.0% Proj 103-City Wayfinding Project N/A 250,000.00 250,000.00 179,777.87 24,236.65 45,985.48 45,985.48 71.9% - o.o% Proj 104-Tart Park Improvements 2023-1007 440,000.00 440,000.00 419,870.85 - 20,129.15 20,129.15 95.4% 200,000.00 45.5% Proj 105-Codrington Park Improvements 788,385.00 100,000.00 188,384.62 - (88,384.62) 600,000.38 23.9% 500,000.00 63.4% Total General Govt Projects $ 5,321,657.59 $ 4,315,860.78 $ 3,498,803.33 $ 513,491.11 $ 303,566.34 $ 1,309,363.15 $ 1,350,000.00 25.4% Water and Sewer Projects - Proj 67-CWSRF WW Treatment Plant Impry 2021 SRP-W-ARP-0033,CS370417-07 12,554,620.00 12,554,620.00 12,422,072.99 - 132,547.01 132,547.01 98.9% 8,856,100.00 70.5% Proj 68-CWSRF Sewer Collection System Rehab CS370417-06 9,859,600.00 9,359,600.00 680,716.94 8,724,472.16 (45,589.10) 454,410.90 6.9% 500,000.00 5.1% Proj 70-Tracy Lane W&S Extension N/A 361,400.00 361,400.00 272,779.78 - 88,620.22 88,620.22 75.5% o.o% Proj 78-Eastside PumpSta,Forcemain USDA Grant&Loan 12,838,202.00 8,820,899.60 3,176,638.50 8,882,056.14 (3,237,795.04) 779,507.36 24.7% 3,500,000.00 27.3% Proj 79-Black River WWTP Effluent SRP-W-ARP-0288 17,664,715.00 4,493,795.07 8,851,904.60 8,648,128.72 (13,006,238.25) 164,681.68 50.1% 15,350,000.00 86.9% Proj 80-Machine&Welding Outfall Sewer SRP-W-ARP-0287 9,341,002.00 8,245,949.01 8,517,238.53 664,729.34 (936,018.86) 159,034.13 91.2% 6,243,900.00 66.8% Proj 81-Sewer Asset Inventory&Asmnt(AIA) AIA-W-ARP-0203 400,000.00 279,600.00 279,600.00 120,400.00 (120,400.00) - 69.9% 400,000.00 100.0% Proj 83-Champion PS Conversion N/A 452,100.00 452,100.00 35,708.40 412,298.60 4,093.00 4,093.00 7.9% o.o% Proj 84-Lead&Copper Srvc Asmnt (SWIA)SRF-D-LSL-0013 500,000.00 500,000.00 454,941.42 35,058.58 10,000.00 10,000.00 91.0% 300,000.00 60.0% Proj 85-Raw Water Pump Station Imprvmnts BR/C2021 9,094,222.00 - 264,901.51 1,264,163.49 (1,529,065.00) 7,565,157.00 2.9% 9,094,222.00 100.0% Proj 86-Water AIA NCDEQ#AIA-D-0302 157,500.00 60,900.00 66,023.47 89,775.00 (94,898.47) 1,701.53 41.9% 150,000.00 95.2% Proj 87-Hwy 301 S Elevated Water Tank S.L.2023-134 5,290,576.00 3,014,341.91 603,930.91 3,939,107.09 (1,528,696.09) 747,538.00 11.4% 2,880,038.00 54.4% Proj 88-PFAS Remediation 268,204.00 1,038,801.36 - - 1,038,801.36 268,204.00 0.0% 268,204.00 100.0% Proj 89-WTP Land Purchase 5,325,000.00 325,000.00 61,952.85 106,008.15 157,039.00 5,157,039.00 1.2% - o.o% Proj 300-WWTP Maintenance Building 210,230.00 - - 195,458.00 (195,458.00) 14,772.00 0.0% - o.o% Total Water and Sewer Projects $ 84,317,371.00 $ 49,507,006.95 $ 35,688,409.90 $ 33,081,655.27 $ (19,263,058.22) $ 15,547,305.83 $ 47,542,464.00 56.4% Stormwater Projects Proj 59-Juniper Creek Area Strmwtr Impry DWI-CWSRF C5370417-08 3,305,150.00 - 117,700.00 415,800.00 (533,500.00) 2,771,650.00 3.6% 1,000,000.00 30.3% Proj 60-E Bay St&S Wilson Av Strmwtr Impry 118,800.00 118,800.00 118,000.00 - 800.00 800.00 99.3% - o.o% Proj 61-Pearsall St Culvert-aka Juniper Crk StW SRP-SW-ARP-0098&0030 2,655,650.00 1,594,583.00 2,422,245.56 156,029.43 (983,691.99) 77,375.01 91.2% 890,340.00 33.5% Total Stormwater Projects $ 6,079,600.00 $ 1,713,383.00 $ 2,657,945.56 $ 571,829.43 $ (1,516,391.99) $ 2,849,825.01 $ 1,890,343.00 31.1% Grand Totals(all funds) $ 95,718,628.59 $ 55,536,250.73 $ 41,845,158.79 $ 34,166,975.81 1$ (20,475,883.87) $ 19,706,493.99 $ 50,782,804.00 53.1% Planning & Inspections Monthly Report TO: City Manager and City Council FROM: Stephanie Goodrich DATE: January 15, 2026 SUBJECT: Planning& Inspections - Monthly Report Please see the following report for the month of December 2025 from the Planning& Inspections Department. Planning Development Permits 13 Rezonings 2 Conditional General 2 Site Plans 2 Subdivision Plans Plats Inspections Permits Issued 46 Commercial 3 Demolition 1 Electrical 11 Mechanical 16 Plumbing 4 Swimming Pools Residential 10 Signs 1 Tent/Temporary Membrane Permit Fees $ 21,689.75 Inspections Performed 33 Certificate of Occupancy/Completion Issued 3 CITY OF DUNN 1/20/2026 Case Number Violation Address Owner or Occupant Status or Conditions MINIMUM HOUSING STANDARDS Substandard housing conditions. Owner is deceased. Conducting further investigation. In discussion with the Medicaid Estate Recovery HC-23-07 101 West Bay Street William Randy Lucas (Deceased) office. Substandard housing conditions. Theodore L Williams Jr & Virginia Awaiting title search and schedule HC-23-08 211 South Magnolia Avenue Williams Inspection upon receipt. Substandard housing conditions. Awaiting title search and schedule Inspection upon receipt. Condemned by Building 401 South Washington Theodore L Williams Jr & Virginia Inspections. Pending. HC-23-09 Avenue Williams Substandard housing conditions. Awaiting title search and schedule Inspection upon receipt. 403-405 South Washington Theodore L Williams Jr & Virginia Condemned by Building Inspections. Pending. HC-23-10 Avenue Williams Substandard housing conditions. Awaiting title search and schedule Inspection upon receipt. Condemned by Building 407 South Washington Theodore L Williams Jr & Virginia Inspections. Pending. HC-23-11 Avenue Williams CODE ADMINISTRATION SERVICES REPORT 1 of 7 JOHN E. GANUS CITY OF DUNN 1/20/2026 Substandard housing conditions. 804 South Washington Theodore L Williams Jr & Virginia Awaiting title search and schedule HC-23-12 Avenue Williams Inspection upon receipt. Substandard housing conditions. HC-23-15 811 East Cumberland Street John Davis Sutton Pending Inspection. Substandard housing conditions. Condemned by Building Prestige Home Solutions LLC Inspections. Under renovation. HC-23-21 604 East Townsend Street (03-07-2025) Substandard housing conditions. Inspection conducted and hearing held. Permits were obtained and work is progressing with permit inspections being conducted. Work continues and near complete. HC-23-22 309 North Wilson Avenue Kris Dolan & David Berg (04-12-23) Pending. Substandard housing conditions. Inspecton scheduled and owners did not show. Ms Edwards called to discuss, relating that the Life Estate does not allow her to do anything with the property without Mr Strickland's approval. Ms Edawrds agreed to a complete inspection of the dwelling which has been 307 South Washington Thomas E Strickland (Life Estate) completed and pending the hearing. HC-23-23 Avenue Robbie A Edwards (Grantee) CODE ADMINISTRATION SERVICES REPORT 2 of 7 JOHN E. GANUS 1/20/2026 CITY OF DUNN Substandard housing conditions. Inspection conducted and hearing pending. Was advised the buyer is closing on the property first week of Eugenia McMillan January. HC-23-27 502 East Surles Street c/o Latina Williams Substandard housing conditions. HC-23-28 611 North Wilson Avenue Frank & Lula Clark Will schedule inspection soon. Substandard housing conditions. HC-23-29 711 North Magnolia Avenue James N Wynn Pending Inspection. Substandard housing conditions. HC-23-31 807 North Layton Avenue Clayton Davis Pending Inspection. Substandard housing. Hearing held with no parties in interest attending. Order issued to Repair Richards Property Group LLC or Demolish by a date not later than HC-23-32 1114 South Clinton Avenue (Terry Richards) 03-01-2026. Substandard housing conditions. HC-23-33 413 South Magnolia Avenue Anchor Investment Properties LLC Pending Inspection. Substandard housing conditions. Leake Legacy Group Inc.(09-12-25) Pending Inspection. Case being converted to Leake Legacy Group handled by Alan Canady, CEO. HC-23-34 202 South Sampson Ave LLC . CODE ADMINISTRATION SERVICES REPORT 3 of 7 JOHN E. GANUS CITY OF DUNN 1/20/2026 Substandard housing conditions. Inspection completed. Hearing conducted and Order issued in phases by exterior and each unit with a final deadline of July 27, 2026 to repair or demolish the HC-23-35 1607-1609-1611 Erwin Rd Minnie F Webb structure. Abandoned, substandard housing. Made contact with owner's Dad who will have the property manager arrange for inspection and further actions. Inspection conducted and owner has agreed to properly board the houses for a period of one year or less to arrange for and conduct repains. Both houses have been properly secured (02-10-2026). Will Chelsi Fawn Boulware continue to monitor the HC-23-37 1001-1003 N Fayetteville Av c/o Fon I Boulware progress/actions. Substandard housing conditions. Under renovation with permits. Work in progress. Monitoring. HC-23-38 901 East Johnson Street Anthony B & Robert L Ross Substandard housing. Inspection conducted. Hearing held with representative in person and owner by telephone. New owners are progressing with renovation. HC-23-45 910 East Divine Street Magnolia Rentals LLC (07-31-25) Monitoring. CODE ADMINISTRATION SERVICES REPORT 4 of 7 JOHN E. GANUS CITY OF DUNN 1/20/2026 Substandard housing conditions. Hearing conducted and owners did not show. Order issued to Repair or Demolish by a date not later than 10-04-24. Memorandum and Odinance to Demolish approved by the Council on 12-10-24. Unfit Notice and Notice to Vacate by 01- 05-2025. Court case heard 09-29- 410 South Fayetteville 25. Have been advised the Judge HC-23-46 Avenue Winged Warriors LLC upheld the City's action. Substandard housing conditions. Permits were obtained and work is progressing. Follow up inspection conducted with progress continuing. Will continue to monitor. HC-23-47 611 West Pearsall Street Linna Investments LLC (12-11-24) Substandard housing conditions. Health and safety violations were observed along with occupancy without active water or electric service. Notice issued with follow up inspection completed. New Rainbow Asset Management NC owners have taken possession. HC-25-02 103 Murchison Drive LLC (11-05-2025) Will monitor progress. CODE ADMINISTRATION SERVICES REPORT 5 of 7 JOHN E. GANUS CITY OF DUNN 1/20/2026 Substandard housing conditions. Inspection conducted with owner. Hearing scheduled for 12-22-25 @ 1:30. No show for hearing. Pending Order. HC-25-03 501 East Vance Street Kush Developments LLC Substandard housing conditions. Inspection conducted with owner. Hearing scheduled for 12-22-25 @ 1:30. No show for hearing. Pending Order. HC-25-04 801 East Harnett Street Kush Developments LLC Substandard housing conditions. Inspection conducted with owner. Hearing scheduled for 12-22-25 @ 1:30. No show for hearing. Pending Order. HC-25-05 803 East Harnett Street Kush Developments LLC Substandard housing conditions. Inspection scheduled and owner did not show. Pending inspection with warrant. HC-25-06 405 East Cole Street Ezekiel Daniel Mata Substandard housing conditions. Inspection requested by the occupant and completed. Pending hearing. HC-25-07 308 East Cleveland Street Spoyle Properties LLC CODE ADMINISTRATION SERVICES REPORT 6 of 7 JOHN E. GANUS CITY OF DUNN 1/20/2026 NON-RESIDENTIAL BUILDINGS OR STRUCTURES Vacant substandard building. Inspection scheduled and owner advised he was out of country. Requested to schedule when he New Dunn Hotel LLC c/o Amar N returns. Will reschedule inspection NR-23-01 510 Spring Branch Road Patell soon. Vacant substandard building. Inspection conducted with owner. Pending hearing and other actions. NR-23-02 508 Spring Branch Road Munishree LLC c/o Suresh Patel Abandoned and deteriorated building. Inspection conducted with Administrative Inspection Warrant. Hearing conducted with owner present. Order issued to repair or demolish with deadline of NR-25-01 201 North Ellis Avenue Peking Properties LLC 12-31-25. CODE ADMINISTRATION SERVICES REPORT 7 of 7 JOHN E. GANUS UCITY OF rJIDUNN PUBLIC UTILUTIES Public Utilities Dept December 2025 Monthly Report 101 E. Cleveland St., Dunn, NC 28334 phone 910-892-2948 fax 910-892-8871 www.dunn-nc.org Water/Sewer De:art' :.m-'— On Call 2 Leak Repair 17 Water Tap New Sewer Tap 2 Sewer Tap Renewals Water Construction -x--. Sewer Stoppage 16 Sewer Construction Manhole Inspection 25 Outfall Maintenance Hydrant Repair 1 Utility Locates 876 Water Meter 123 Repair/Investigations Retire Water and Sewer Services Valve Maintenance 2 Taste and Odor Complaint Water Quality Flushing Low Pressure Complaint 2 Other—Water 2 Other—Sewer LAir grY4 ,'- j,__,, 11111 rort ' - umpy Public Utilities Dept-WTP December 2025 Monthly Report 101 E. Cleveland St., Dunn, NC 28334 phone 910-892-2948 fax 910-892-8871 www.dunn-nc.org A.B. Uzzle Water Treatment Facility Total Million Gallons Pumped 81.437 ---- ' - -- -- --- -- - -- - - Average Million Gallons Per Day 2.627 , Pumped Total Million Gallons Bulk Sales 53.110 Water Plant Averages and Total Million Gallons Pumped 2024 -2025 120 100 80 .... , .... , . c o i co ! ° 60 c o ' ' 75 , 4 11 2 '61 40 ,'s 15 - ,:5 5 ' *- 71.22 ;- :1 _5_ 17 c7 /29 6 6 5 20 4 ! 4 4. ! 3: , 4 , 4 4 ' 5 5 2.5 2.5 2.4; 2.54 2.6; 2.6 2.8 3.2 3.2 3.2 3.0 2.7 2.6 0 - Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 2024-2025 til Daily Average Pumped id Total Million Gallons Bulk Sales L.J Total Million Gallons Pumped 'IA444TAW Bulk Chemicals and Rain Fall Totals 2024-2025 90 80 70 60 50 40 30 20 10 0 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 -Chemicals Used X 1,0001bs -Rain Fall in Inches *Data from A.B. Uzzle Water Treatment Plant records,and Finance Department billing. Monthly Recreation Report 2.025 tv. CITY OF PARKS AND RECREATION December Monthly Narrative Report Basketball Instructional league (7U) began practices December 6th and will begin playing games on January 3rd. l0U and 13U boys' leagues began playing games on December 27th. 10U girls will begin games on January 13th. All leagues will be playing in-house except for l0U girls who will be playing with other teams throughout the county. Indoor Soccer Registration for ages 7-13 begins December 9th and will end January 14th Senior Center The seniors hosted their annual Christmas Dinner at the Dunn Community Center on December 16th. Other activities include bingo and ugly sweater contest. They also spent some time in the greenhouse tending to the collards, cabbage, and okra that they planted. Recreation Advisory Board The last meeting was held on Thursday,November 20th, at 6:00 p.m. in the Dunn Community Center. The next meeting is on February 17th at 6:00 p. m. in the Dunn Community Center. CITY OE 2025 Sillgrl PARKS AND RECREATION 205 Jackson Rd • PO Box 1065 • Dunn, North Carolina 28335 (910) 892-2976 • CityofDunn.org December Monthly Report Dunn Parks & Recreation Facility Rentals,Programs & Etc. Numbers Rentals Facility Dunn Community Building 1 Clarence Lee Tart Memorial Park 0 Multipurpose Room 1 Codrington Park 0 Nathan Harris Athletic Complex @ Tyler Park 0 Baseball& Softball Field Rentals 0 Tennis Courts 0 Picnic Shelter Rentals 0 \\inter Programs Instructional League 40 l0U Boy's League 32 l0U Girl's League 11 13U Boy's League 31 P K Vyas Center P K Vyas Recreational Walkers 266 Free Play 14-17 years old 19 Free Play 11-13 years old 8 Free Play 10 &Under years old 1 Adult Play 14 Batting Cage Rentals 0 Pickleball Players 126 Racquetball Court 0 Senior Center Attendance 222 Bingo 41 Exercise Class 82 Educational Class 18 Line Dancing 12 Cemetery Report Resthaven Cemetery Sections Total Spaces Purchased Available Existing section 1-9, 11, 13 & 15 6,960 6,547 413 Section 12 (opened May 2023) 432 28 404 Section 14(opened May 2023) 488 35 453 • Section 10& 16 (not et omen) 1,248 0 0 Greenwood Cemetery Existin: Section A—Z 10,092 9,742 350 Memorial Cemetery Existing Section A—F 3,448 1,504 1,832 Existing section I,II,III 272 272 0 Section G—P(not yet open) 3,336 0 0 I T Y Of . D UNN (No j PARKS AND RECREATION Social Media Activity December 2025 . t . . a . a �„... Registration is open NOW! Register at IS https://dunnparks.recdesk.com/Community/Home or in 1# our office Monday thru Friday. Deadline is January 14, Monday, December 8th 2026 to avoid any late fees. -41 , •�''` indoor Soccer for . r ages 8 -13 Re I ister Now! a . a . a Post Reach Viewers 7K 3K a Page Overview Last 28 days i i 1 i" 06 Post Reach Post Views Page Followers 14K 7K 5.1K wag CITY OF 1887 POLICE DEPARTMENT 401 E Broad St .PO Box 1065 . Dunn,North Carolina 28335 (910)892-2399. CityofDunn.org Chief of Police Cary Jackson December 2025 Monthly Crime Stats (12/01/2025 to 12/31/2025) Crime Number Homicide 0 Rape 1 Robbery 1 Aggravated Assault 0 Burglary Forcible Entry 6 Burglary Non-Forced Entry 5 Larceny from Motor Vehicle 2 Larceny all-other 24 Simple Assaults 10 Criminal Investigations Division Assigned Cases Closed Recovered Property Search Warrants Cases Executed 29 22 $250,000 2 Cellebrite Forensic Digital Data Extraction Device: 0 Extractions Dunn Police Arrest & Citation Stats Month Felony Misdemeanor Citations December 14 50 167 Calls for service: 1377 Overdose Stats Month Fatal Non-Fatal Total DPD Narcan Use December 0 0 0 0 ?(lief e communitj 6eGJlns/ maim CITY OF hid 1887 POLICE DEPARTMENT 401 E Broad St .PO Box 1065. Dunn,North Carolina 28335 (910)892-2399. CityofDunn.org Chief of Police Cary Jackson Flock Safety Utilizations Total Plate Hot List Hits Recovered Leads Arrest Reads: Property Established 1,104,844 1,596 1 1 5 Dru:s seized: Marijuana 22,718 grams Amphetamines/Methamphetamines 92 grams Stimulants 120 grams Other Drugs 120 grams Cocaine 45 kilograms Dru: Seizure Street Value: $4,872,210.00 Iere community 6jins!