HomeMy WebLinkAboutAgenda 03-10-2026 WSCITY OF
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CITY COUNCIL
WORK SESSION
6:30pm, Tuesday, March 10, 2026
Dunn Municipal Building
401 East Broad Street
Dunn, North Carolina 28334
-AGENDA-
CALL TO ORDER - William P. Elmore, Jr., Mayor
INVOCATION
PLEDGE OF ALLEGIANCE - Raquel McNeil, Council Member
CONSIDERATION & APPROVAL OF THE AGENDA
CLOSED SESSION
If called, the motion to enter closed session must cite the North Carolina General Statute that authorizes the closed
session.
CONSENT AGENDA
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 underthe Items for Discussion & Possible Action section of
the agenda.
1. Approval of February 6, 2026 Budget Retreat Minutes
2. Approval of February 24, 2026 Regular Minutes
ITEMS FOR DISCUSSION & CALENDARING FOR MARCH 24, 2026
3. Reconsideration of Rezoning Request (RZ-25-04) - Dogwood Knoll Street & Fair-
ground Road
4. Consideration of Rezoning / Map Amendment (RZ-26-01) - Cypress View Children's
Home
5. USDA Loan Letter of Conditions — Public Works Equipment
Page 1 of 2
CITY OF
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REPORTS & UPDATES
6. City Manager's Report
a. Upcoming Agenda Items
i. Special Use Application
i1. Retirement of K-9 Officer
b. Updates
i. Cotton Gin
ii. Downtown Trees/Sidewalks
iii. Paving
7. Announcements
ADJOURNMENT
The City of Dunn is an equal opportunity provider and employer.
Page 2 of 2
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Work Session, March 10, 2026
Agenda Item(s): Approval of February 6, 2026 Budget Retreat Minutes
Presenter(s): Melissa Matti, City Clerk
Responsible Staff: Melissa Matti, City Clerk
Action Item: Yes
Attachment(s): 1) February 6, 2026 Budget Retreat Minutes
Background
None
Budget Impact
None
Staff Recommendation(s)
Approval of Minutes as presented.
Suggested Motion(s)
Motion to approve February 6, 2026 Budget Retreat Minutes as presented.
Page 1 of 1
Dunn City Council
Special Meeting — Budget Planning Retreat
Friday, February 6 - Saturday, February 7, 2026
8:30 a.m., Lumina, Wrightsville Beach NC
MINUTES
PRESENT: Mayor William P. Elmore Jr., Mayor Pro Tem April Gaulden, Council Members J. Wesley Sills, Raquel
McNeil, Billy N. Tart, Alan Hargis, and Dr. David L. Bradham.
ALSO PRESENT: City Manager Justin Hembree, Assistant City Manager Billy Godwin, Finance Director Cary
McNallan, Chief of Police Lynn Gay, Major Nick Simmons, Parks and Recreation Director Brian McNeill, Human
Resources Director Connie Jernigan, Public Works Director Dwayne Williams, Building Inspector Slater
Johnson, Water Treatment Plant Manager Ian Stroud, and City Clerk, Melissa Matti.
The Dunn City Council held a retreat with key staff to establish goals & priorities for fiscal year 2026-2027.
Chad Sary with KCI Associates of North Carolina facilitated the retreat.
DAY ONE - FRIDAY, FEBRUARY 6, 2026:
Session 1 - Getting Started
The sessions of day one started with the call to order and opening remarks by Mayor - William Elmore, Jr., City
Manager - Justin Hembree, and Facilitator - Chad Sary.
Session 1 - Pre -Retreat Questions
The first activity involved three (3) questions for all participants to answer. The questions are listed below,
along with a summarization of the answers provided:
Question 1 - What is one thingyoulearned in 2025 as a City Official?
• Making complex decisions in the best interest of Dunn.
• Valuing high -quality staff and strong teamwork.
• Adapting effectively to change.
• Navigating complex laws and ordinances.
• Recognizing that the limits and pace of government can be frustrating.
Question 2 - What do you see as the most critical issue or trend (internal and external) facing the Ci
of Dunn over the next year or two?
• Adequate and reliable infrastructure.
• Balanced, high -quality growth.
• Retaining and attracting talented city staff.
• Maintaining public trust.
• Securing funding for needed projects.
• Supporting social and community health.
Question 3 - What is the one thingyouhope to take away from this retreat?
• Consensus on goals and projects.
• Clear direction and unity.
• Actionable goals
• Short- and long-term wins
Session 1- Four Tendencies & Decision Making in Government
The Four Tendencies is a research -based framework developed by Gretchen Rubin that explains habits & how
people are likely to follow through with commitments. According to Rubin's research, people fall into one of
four types (Upholder, Questioner, Obliger, or Rebel) based on whether they are more likely to meet or resist
these expectations. City Council members responded to a series of questions designed to identify the
leadership or decision -making tendencies that most closely align with their perspectives.
FOUR TENDENCIES
Upholders
Obligers
• Embrace both internal and external
0 The "people pleaser" - easily meets outer
expectations easily
expectations but struggles to meet inner
• Do not' want to fail others, but they don't believe
expectations.
in failing themselves either = balance +
0 Creating outer accountability is the key to
boundaries
success.
• Comforted by meeting expectations
0 Susceptible to overwork & burnout.
• Watch for "tightening" — becoming overly rigid
0 Risk "obliger rebellion" when overwhelmed.
with routines and expectations.
City Council members who align with this tendency:
City Council members who align with this tendency:
William Elmore
Wes Sills
Billy Tart
Raquel McNeil
Questioners
Rebels
• Do well in achieving their own expectations but
0 Independent thinkers
often fail to live up to those of others.
0 Resist internal and external expectations.
• Understanding the "why" is key - need to meet
0 Motivated by freedom and authenticity.
an information threshold.
0 Can do anything they WANT to do.
• Value effective and efficient systems.
• Struggle with routines and planning.
• Can struggle with "analysis paralysis" when
answers aren't complete.
Respond best to information +consequences +
choice.
City Council members who align with this tendency:
City Council members who align with this tendency:
Alan Hargis
April Gaulden
David Bradham
Session 1- Decision Making in Government
This session, grounded in the work of public administration scholar John Nalbandian, explored the complex
nature of decision -making in local government, not as a search for "right" answers, but as a process of balancing
legitimate, often competing values. Participants examined four core values that shape public service:
• Accountability and Representation
• Efficiency and Professionalism
• Social Equity and Diversity
• Justice and Individual Rights
These values frequently exist in tension, requiring elected officials to navigate trade-offs rather than seek
perfect solutions. Dr. Nalbandian expanded on this framework in partnership with Julia Novak, and introduced
six (6) governance "hats" that elected officials wear:
2
• Big Picture Thinker - strategic thinking long-term and big -picture about the community's future.
• Trustee/Steward - making decisions that serve the whole community (or future community), even
when they're unpopular.
• Customer Service - responding to individual concerns and being a voice for residents.
• Community Builder - fostering relationships and bringing people together across differences.
• Decision -Maker - weighing evidence and casting votes.
• Oversight - ensuring accountability and transparency in government operations.
Each member of the Council was asked to consider which value and hat feels most dominant to them. In other
words, how do they most often come to the table to do the business of city government? Council members
reflected on their dominant values and roles, identifying how these influence their approach to governance and
teamwork.
Understanding values can give the governing body a common language to use for healthy debate of conflicting
perspectives instead of allowing conflict to get personal.
Core Value
Governance Hat
William Elmore
Efficiency & Professionalism
Big Picture Thinker
Billy Tart
Efficiency & Professionalism
Big Picture Thinker
Wes Sills
Accountability & Representation
Customer Service
Raquel McNeil
Accountability & Representation
Community Builder
Alan Hargis
Accountability & Representation
Community Builder
April Gaulden
Accountability & Representation
Customer Service
David Bradham
Efficiency & Professionalism
Big Picture Thinker
Session 2 - Reflecting
Finance Director, Cary McNallan, provided a presentation of the mid -year and overall financial outlook of the
City. The City Manager and Assistant City Manager provided updates on major capital projects, spending
priorities, and the revenue policy. In addition, Dr. AR El-Khattabi from the UNC School of Government provided
a presentation on utility rates. The following projects were discussed:
Major Capital Projects:
• Water Treatment Plant
• Wastewater Treatment Plant
• New Public Services Building
• Cotton Gin Property
• Stewart Theater
• Paving Project - Phase II
Spending Priorities
• Personnel Priorities
• General Utility & Stormwater Projects
• Neighborhood Improvements
• Codrington Park Enhancements
• General Equipment Maintenance, Repairs, Additions & Upgrades
3
• Marketing & Public Outreach
• Beautification
• Railroad Building
• Wayfinding Project Phase II
• Park to Park Trail Project Phase II
Revenue Policy
• Enterprise Fund
• General Fund
• Vehicle & Equipment
Session 3 - Specific Projects Prioritization Exercise
For the purposes of the budget retreat, it was agreed upon that discussions would be consistent with the City's
vision statement (Core Value) & strategic themes (Focus Areas) from the City's Strategic Plan [Imagine Dunn],
illustrated below. The specific projects discussed in Session 2 were categorized into these themes.
E
ainn is a dynamic,
en yaged community where
a diversilg o, j people wani
to live, visit, play and do
business. We embrace
growth, oplxxtunitg and
progress while pre -serving
the hometown character
that makes our communily
=QUALITY OF LIFE
2 PLANNING FOR GROWTH
3 BUSINESS DEVELOPMENT
4 COMMUNITY CHARACTER
5 MARKET POSITIONING
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While ALL these projects are important, the council members had the opportunity to vote on which projects
were considered priorities for FY 26-27. The voting occurred through the "dot democracy" method, with each
member getting a total of 7 dots. The chart below illustrates these priorities and their connection to
implementing Imagine Dunn's goals.
Priority
Votes
Goal
Imagine Dunn
Theme
8
Water Treatment Plant Upgrades
Quality of Life
6
Stormwater Projects
Quality of Life
6
Marketing & Public Outreach Efforts
Marketing Positioning
4
Personnel Priorities
Planning for Growth
4
Codrington Park Enhancements
Community Character
n
3
City Hall Improvements
Planning for Growth
3
Stewart Theater Renovations
Community Character
2
Utility System Replacement Projects
Quality of Life
2
General Equipment Maintenance & Repairs
Planning for Growth
2
Police Tech Upgrades
Planning for Growth
2
Vehicle Equipment Updates
Planning for Growth
2
Neighborhood Improvements
Community Character
2
Wayfinding Project - Phase 2
Marketing Positioning
1
Permitting Software Improvements
Business Development
1
Wastewater Treatment Plant Upgrades
Quality of Life
1
Railroad Building Improvements
Community Character
0
Cotton Gin Improvements
Community Character
0
Beautification Projects
Community Character
0
Park to Park Trail Project Phase 2
Community Character
0
New Public Services Facility
Planning for Growth
Session 4 - Keep, Toss, Complete Exercise
Facilitator Sary reviewed the goals and priorities from the previous year's retreat, and a category of "Keep, Toss
or Complete" was agreed upon by the City Council. A consensus was formed to delete the goals that were
complete or no longer a priority and to keep the ones that remain as relevant goals. The following illustrates
the outcome of this exercise:
FY 2 5-2 6 Goal
Status
Water, Sewer, WWTP
• Flocculator replacement
Keep/progress made
• Building updates
Keep/progress made
• Digester Building
Keep/progress made
• Asphalt milling
Complete
Community Center Bathrooms Update
Keep/progress made
Police Department
• Retention Plan
Complete
• Special Response Team
Toss
Keep
• Research Drone Use
Keep
• Vehicle Replacement Schedule
Strategy for 107 S. Railroad Street Building
Keep
Improvements
A
Public Works Grapple Truck Replacement
Complete
Planning & Inspections Building Rehab
Keep
Parks & Recreation
• FTE as prograrl coordinator
• Cemetery lighting process
• Plan for pickleball courts
• Greenwood Cemetery beautification
Keep
Keep
Complete
Keep
Sidewalk Repairs
Keep/progress made
Historic Preservation District/Ordinance
Keep
Economic Development Zones
Keep
Increased focus on code enforcement
Keep/progress made
Boarded Window Ordinance
Keep
Research Juneteenth Holiday Costs
Complete
Session 4 - Goal Setting & Prioritization
Facilitator Sary compiled all priorities discussed in previous sessions, aligned them with the six (6) focus areas
identified in Imagine Dunn, and organized them into primary and secondary goal categories.
While all the identified projects are important, Council members were asked to prioritize those they believe
should receive the greatest focus in FY 2026-2027.
To do this, members participated in a structured voting exercise using a dot allocation system tied to monetary
values. Each Council member received a total of $0.82 to allocate across the goals (two pennies, two nickels,
two dimes, and two quarters).
• Quarters ($0.25) represented top priorities.
• Dimes ($0.10) represented very important initiatives.
• Nickels ($0.05) represented helpful but secondary efforts.
• Pennies ($0.01) represented "nice to have" items.
All coins were required to be used, and members could allocate multiple coins to a single goal if they felt it
warranted stronger emphasis. The intent of the exercise was to simulate real -world funding decisions and
encourage thoughtful prioritization of where the city should concentrate resources in the upcoming fiscal year.
The chart below illustrates the results of the Council's voting priorities.
PRIORITIZED GOALS:
Rank & Voting
Goal & Action Steps
Water Treatment Plant Upgrades
➢ Identify funding opportunities.
#1 ($1.50)
➢ Develop a phased engineering & financial report.
➢ Develop agreements with partners to purchase water.
➢ Create a plan for short-term actions.
C�
Responsible Party: Public Utilities
Stormwater Projects
#2 ($0.90)
➢ Continue to look for grant funding.
➢ Complete projects along Merry Street & Friendly Road.
Responsible Party: Administration
Personnel Priorities
➢ Review workforce pay & structure to assure competitiveness.
#3 ($0.75)
➢ Include policy for COLA & merit increases.
➢ Look at targeted market adjustments for specific positions.
0 Review and make budget recommendations.
Responsible Party: Administration & Human Resources
Codrington Park Enhancements 0
Pursue PARTF grant.
#4 ($0.71)
➢ Complete concept plan
➢ Move or sell the house on the property.
➢ Look at selling the Magnolia Street property for redevelopment.
Responsible Party: Administration & Parks/Recreation
General Marketing & Public Outreach
➢ Merge marketing & communications responsibilities with Downtown Dunn
and other administrative duties.
➢ Proactive outreach on special events regulations & policies.
#5 ($0.57)
➢ Proactive outreach on leaf collection.
➢ Look for opportunities for city employees to help with brand awareness
through clothing & accessories.
➢ Hire for position (budgeted in FY 25-26).
Responsible Party: Administration
Police Tech Upgrades
➢ Purchase drone and cameras.
#6 ($0.35)
➢ Replace side -by -side.
➢ Pursue grants for purchases.
Responsible Party: Police
Stewart Theater Renovations 0
#7 ($0.25)
Contribute $50K annually
Responsible Party: Administration & Finance
City Hall Improvements
➢ Create an overall improvement plan to address appearance & privacy.
#8 ($0.13)
➢ Repair roof & replace HVAC.
➢ Install new/additional landscaping and exterior improvements.
Responsible Party: Administration
General Equipment Maintenance/Repairs
#9 ($0.10)
➢ Identify needs & develop a maintenance schedule for equipment.
➢ Should be managed by each department.
M Look at the replacement of older vehicles to address continual maintenance =
ROI of buying new vs. repair costs.
Responsible Party: All Departments
Railroad Building Upgrades
➢ Develop a concept plan for best use.
#9 ($0.10)
➢ Look for funding opportunities and partnerships.
➢ Paint exterior
Responsible Party: Administration
Vehicle & Equipment Replacement
➢ Develop Replacement Schedule
#10 ($0.06)
➢ Implement VERF
➢ Look at the pricing of the new leaf truck.
➢ Look for other alternatives to help with citizen concerns
Responsible Party: Administration & Finance
Neighborhood Improvements
➢ Create a comprehensive list of actions and provide them with them to the city
council.
➢ Should include general maintenance, tree removal/replacement, trash cans,
#11 ($0.04)
planters, etc.
➢ Continue to focus on code enforcement.
➢ Focus on pavement markings and sidewalk improvements.
Responsible Party: Public Works
Beautification Projects
#12 ($0.02)
➢ Implement adopt -a -street program.
➢ Develop a city-wide cleanup day
Responsible Party: Planning & Inspections
Permitting Software Improvements
➢ Create opportunities to educate & train external users.
#13 (0.01)
➢ Look for ways to refine software for ease.
➢ Focus on customer service
Responsible Party: Planning & Inspections
CONCLUSION
The Dunn City Council Budget Retreat, held on February 6-7, 2026, focused on strengthening team dynamics
and identifying the City's top strategic priorities for the upcoming fiscal year and beyond. Through guided
discussions, Council members explored personal tendencies and governance styles, fostering a better
understanding of how they work individually and collectively.
The Council reached consensus on its highest priorities and identified specific goals and action items to achieve
them. This process provides City staff with a clear, consensus -driven work plan and budgeting guidance for FY
2026-2027.
ADJOURNMENT
With no further business to discuss, the meeting was concluded at 11:15 a.m.
William P. Elmore, Jr.,
Mayor
Melissa R. Matti,
City Clerk
9
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Work Session, March 10, 2026
Agenda Item(s): Approval of February 24, 2026 Regular Meeting Minutes
Presenter(s): Melissa Matti, City Clerk
Responsible Staff: Melissa Matti, City Clerk
Action Item: Yes
Attachment(s): 1) February 24, 2026 Regular Meeting Minutes
Background
None
Budget Impact
None
Staff Recommendation(s)
Approval of Minutes as presented.
Suggested Motion s
Motion to approve February 24, 2026 Regular Meeting Minutes as presented.
Page 1 of 1
Dunn City Council
Regular Meeting
Tuesday, February 24, 2026
6:30 p.m. Dunn Municipal Building
Minutes
PRESENT: Mayor William P. Elmore Jr., Mayor Pro Tem April Gaulden, Council Members J. Wesley Sills,
Raquel McNeil, Alan Hargis, and Dr. David L. Bradham.
ABSENT: Council Member Billy N. Tart
ALSO PRESENT: City ManagerJustin Hembree, Assistant City Manager Billy R. Godwin, Finance Director, Cary
McNallan, Chief of Police Lynn Gay, Major Nick Simmons, Captain Matt Smith, Code Enforcement Officer Stephen
Hodges, Enforcement Officer Cindy Rodreguez, Human Resources Director Connie Jernigan, Parks & Recreation
Director Brian McNeill, Senior Planner Stephanie Goodrich, PublicWorks Director Dwayne Williams, Collection &
Distribution Manager Billy Cottle, Wastewater Treatment Plant Manager, Donrie Dukes, Water Treatment Plant
Manager Ian Stroud, Administrative Support Specialist Christy Sweeney, City Attorney Tilghman Pope and City
Clerk Melissa Matti.
CALL TO ORDER
Mayor William P. Elmore, Jr. called the Regular Meeting of the City of Dunn City Council to order at 6:30 PM on
Tuesday, February 24, 2026.
Mayor Elmore noted that Council Member Billy Tart was absent due to a family commitment. He requested that
all attendees silence their cell phones during the meeting.
INVOCATION
The invocation was delivered by Reverend Jason Williams, Co -Pastor of Hood Memorial Christian Church.
PLEDGE OF ALLEGIANCE
Mayor Pro Tem April Gaulden led the Pledge of Allegiance.
CONSIDERATION & APPROVAL OF THE AGENDA
The agenda was approved without changes.
Motion by Council Member Bradham, seconded by Council Member Hargis to adopt the February 24,
2026 Regular Meeting agenda as presented. Motion carried unanimously.
PRESENTATIONS
Retirement Resolution - Patty Rowland
Finance Director Cary McNallan read aloud a Resolution of Appreciation for Patty Rowland upon her
retirement, effective March 1, 2026, after 30 years of service to the City of Dunn.
The resolution detailed her career history, beginning as Accounting Supervisor on June 14,1996, her promotion
to Utility Service Specialist on July 1, 1998, and her subsequent promotion to Revenue Manager on May 11,
2016. The resolution recognized her implementation of the "blue paper" system, her receipt of several letters
of commendation for customer service, her attendance at Johnston County Community College and the UNC
School of Government, and her receipt of the North Carolina RWA Outstanding Administrative Personnel
Award in 2010. The resolution also noted that Patty found her husband, Dunn Police Sergeant Rodney Rolland,
during her tenure with the City; they were married on September 19, 2004, and have two sons.
Mayor Elmore offered his personal thanks on behalf of the Board and staff, acknowledging that a great deal of
institutional knowledge would be departing with her retirement and wishing her well. A copy of Resolution of
Appreciation (R2026-04) is incorporated into these minutes as Attachment#1.
Oath of Office - Chief of Police
City Manager Justin Hembree introduced the swearing -in ceremony for the new Chief of Police, Thomas Lynn
Gay. The City Clerk administered the Oath of Office. A copy of Oath of Office is incorporated into these minutes
as Attachment#2.
Following the oath, Chief Gay addressed those gathered, acknowledging the honor and humility of the moment.
He thanked City Manager Hembree, the Assistant City Manager, Mayor Elmore, and the City Council, and offered
particular thanks to his family for their support. He also publicly acknowledged Sheriff Coates, colleagues from
Rocky Mount, Raleigh PD, and the SBI, as well as his church family and friends. Chief Gay addressed the
members of the Dunn Police Department directly, stating that their commitment was the reason he accepted
the role. He pledged to lead with fairness, accountability, and respect, emphasizing that good policing is built
on trust, professionalism, training, and relationships earned one interaction at a time, and that he would listen
even when it was not comfortable or easy.
Mayor Elmore thanked Chief Gay and expressed anticipation of many ,years _of service under his leadership. A
brief recess was called following the ceremony to allow guests who had attended for the swearing -in to depart.
PUBLIC COMMENT PERIOD
No members of the public came forward to speak.
CONSENT AGENDA
The Consent Agenda included seven (7) items:
• Minutes of January 27, 2026 Regular Minutes
• Approval of Budget Amendments - Various Operating Accounts
• Acceptance of Animal Shelter Donations
• Consideration of Resolution DeclaringCertain Property Surplus & Authorizing the Disposition through
GovDeals.com
• Contract Award for FY26 Audit Services
• Alley Encroachment Agreement for 203 Broad Street Fire Escape
• Extension of On -Call Services Agreement with Davis -Martin Powell & Associates, Inc. & WithersRavenel
Motion by Mayor Pro Tem Gaulden, seconded by Council Member McNeil, to approve Consent Agenda
Items 3 through 9. Motion carried unanimously. Copies of Budget Amendment -Various Accounts (BA-2026-
18); Budget Amendment (BA-2026-21); Resolution Declaring Certain Property Surplus (R2026-05); Contract
Award for FY26 Audit Services (R2026-06), Alley Encroachment Agreement, and Extension of On -Call Services
Agreements are incorporated into these minutes as Attachment #3.
ITEMS FOR DISCUSSION & POSSIBLE ACTION
Authorize and Approve
Water Treatment Plant
Land Purchase Financing
Finance Director McNallan presented this item as the next step following the Council's January 13 authorization
of the application to the Local Government Commission (LGC) for financing the land purchase for the water
treatment plant, at which time Ty Wellford of Davenport Public Finance had presented the financing structure
and process. Mr. McNallan explained that tonight's resolution formally approves the purchase financing itself.
He noted that the interest rate had not yet been locked in, and that the resolution authorizes a not -to -exceed
rate of 4.5 percent. He indicated that the rate at the time of writing was 3.94 percent and that he anticipated
the final rate to settle near 4 percent.
Motion by Council Member Sills, seconded by Mayor Pro Tem Gaulden to approve the attached
resolution authorizing and approving the Water Treatment Plant land purchase financing with a not -
to -exceed interest rate of 4.5 percent and authorizing the Mayor and staff to execute all required
documents. Motion carried unanimously. A copy of Resolution Authorizing & Approving Financing(R2026-07)
is incorporated into these minutes as Attachment#4.
Capital Project Ordinance Amendment II
Tart Park Improvement Project
(Close -Out)
Finance Director McNallan presented the close-out of the Tart Park Improvement Project, which was originally
approved by the Council in March 2024, with a total budget of $440,000, of which $400,000 came from a Parks
and Recreation Trust Fund Grant and $40,000 from the General Fund. Mr. McNallan reported that the total cost
at project completion was just under $420,000, leaving an unexpended balance of approximately $20,000. The
amendment reflects the final project accounting and requests Council approval to transfer the $20,129.15
balance back to the General Fund reserves.
Motion by Council Member Hargis, seconded by Council Member Bradham to approve the attached
Capital Project Ordinance Amendment and Budget Amendment for the Tart Park Improvement Project.
Motion carried unanimously. Copies of Capital Project Ordinance Amendment(02026-03) and Budget
Amendment (BA-2026-19) are incorporated into these minutes as Attachment#5.
Acceptance of NCDEQ OSG Funding
Juniper Creek Area Stormwater
Finance Director McNallan reported that in June 2025, the Council had accepted a $2,805,150 funding package
for the Juniper Creek area stormwater project, consisting of $500,000 in grant funds and a $2,300,000 State
Revolving Fund loan. Since that time, Mr. McNallan explained that WithersRavenel had been instrumental in
identifying an alternative and superior funding source: a Stormwater Reuse Municipal Grant from NCDEQ in
the amount of $3,396,071.00.
Director McNallan emphasized that this is a true grant requiring no repayment, and that accepting it would
replace the previous funding package entirely, eliminating the need for the $2,300,000 loan.
Mayor Elmore characterized the news as straightforwardly positive before calling for a motion.
Motion by Council Member Sills, seconded by Council Member April Gaulden to adopt the Resolution
Accepting $3,396,071 of OSG-370417-08 Grant Funds from NCDEQ for the Juniper Creek Area
Stormwater Project. Motion carried unanimously. Copies of Resolution by Governing Body of Recipient (R2026-
08) and Capital Project Ordinance Amendment (02026-04) are incorporated into these minutes as Attachment#6.
Acceptance of AKC Reunite
K-9 Cop Grant
Chief of Police Lynn Gay presented this item, explaining that the AKC Reunite K-9 Cop Grant provides funding
assistance to law enforcement agencies for the purchase of trained police service dogs. The City was awarded
$7,500, representing 75 percent of the total cost of a new police canine. Chief Gay noted that the department
currently has one canine that is nearing retirement, and that this grant would fund an additional canine, with
the goal of having one (1) canine on duty at all times, providing 24/7 coverage for the City.
Motion by Council Member Bradham, seconded by Council Member Hargis to approve the acceptance
of the AKC Reunite K-9 Cop Grant and the attached Budget Amendment. Motion carried unanimously. A
copy of BudgetAmendment (BA-2026-20) is incorporated into these minutes as Attachment#7.
REPORTS & UPDATES
City Manager's Report
City Manager Justin Hembree directed the Council's attention to two (2) documents included in the agenda
packet: a summary report from the recent Budget Retreat prepared by the facilitator, Chad, and the facilitator's
slide deck presented at the retreat. Mr. Hembree stated that these documents were included to serve as a
guiding reference as the City moves into the budget development process for the upcoming fiscal year. He noted
that staff had already begun acting on the priorities identified at the retreat, including a meeting held that same
day focused specifically on improvements to the Water Utility System and Water Plant Projects planned for the
next fiscal year. Mr. Hembree expressed appreciation to the Council for their participation and input at the
retreat, stating that it provided significant clarity for staff as they develop the budget, and indicated that the
Council would see how those priorities are reflected during upcoming Budget Workshops.
Financial Report
Finance Director McNallan presented the monthly Financial Report as of the end of January 2026, with the City
seven months into the fiscal year and a benchmark of 58 percent of budget. He reported Cash and Investments
of $9,400,000, compared to $10,100,000 at the same point the prior year, with the decrease attributable
primarily to grant reimbursements not yet received. An additional $5,900,000 was held in the East Side Pump
Station construction account. Mr. McNallan reported that General Property Taxes collected through December
totaled $2,000,000 for the month, consistent with the prior year, and $4,500,000 year-to-date, representing
approximately 77 percent of the Property Tax Budget. For Sales Tax, November receipts came in at $346,000,
which was $43,000 more than the same period the prior year, with year-to-date collections of $1,600,000 or
48 percent of budget. Building Permits and Development Fees for January totaled $10,510, with year-to-date
collections of $109,000, or 59 percent of budget. Mr. McNallan noted that full Revenue and Expenditure Reports
were included in the Council's packet.
Departmental Reports & Project Updates
Code Enforcement
City Manager Hembree prefaced the Code Enforcement presentation by noting that the City had received
questions from residents regarding garbage carts being left at the curb for extended periods beyond scheduled
collection times. He noted that a City ordinance requires residents to return carts from the street after
collection. Hembree indicated that rather than immediately enforcing the ordinance through formal action,
staff planned to use public information tools —including flyers, mailers, the city website, and Facebook—to
educate and encourage residents to comply. He also noted a practical consequence of carts remaining at the
curb: street sweepers are unable to clear leaves and debris from those sections of the curb, contributing to
stormwater issues.
Code Enforcement Officers Cindy Rodriguez and Stephen Hodges then presented updates on recent
enforcement activity. Officer Rodriguez highlighted three properties that had been successfully remediated.
The first, at 1000 West Harnett, had accumulated boxes on the porch and was cleaned up in a timely manner.
The second, at 1103 East Johnson, had approximately five to six vehicles with flat tires on the property that
were removed by the resident in a timely fashion. The third, at 401 North Wilson Avenue, involved junk and
debris that required the City to send a contractor, but was ultimately resolved. Officer Rodriguez remarked that
residents had generally been cooperative in addressing code violations.
Officer Hodges provided a separate update on 611 West Pierce Valley, a property that had been of concern to
multiple residents. He reported that the owners had pulled Building Permits, performed significant interior
work, and that the property was looking considerably improved on the inside following his inspection the
previous week. He stated that the property would be removed from the City's minimum housing list, as the
owners were working toward completion with an apparent intention to list the home for sale.
City Manager Hembree commended the Code Enforcement team, noting that voluntary compliance was
becoming increasingly common and was allowing the City to avoid more burdensome formal enforcement
proceedings.
Probation Office
City Manager Hembree provided an update on the Probation Office situation, referencing two (2) documents
included in the agenda packet: an email from the County manager dated January 30 forwarded to the Council,
and a response received from the Chief Deputy Secretary of the Department of Adult Corrections. Mr. Hembree
noted that the County Manager's email indicated that provisions had been made for probation clients to use
restroom facilities at the office location, and that the County was still examining other related matters. He also
reported that Chief Gay and members of the Police Command staff had met with leadership at the Probation
Office to address specifically the issue of City officers being relied upon to transport probation clients. Mr.
Hembree indicated that the meeting appeared productive and had opened lines of communication, and that
while not all issues were fully resolved, the situation regarding client transport had improved. He noted that
the Chief made clear to the Probation Office that the Police Department is willing to assist but cannot serve as
the primary means of transportation for every client needing to travel to Lillington.
Council Member Alan Hargis offered pointed remarks on the matter, stating that he found the County's
response deeply frustrating given years of prior discussions. He argued that downtown Dunn was not an
appropriate location for the Probation Office, particularly given that clients from areas such as Anderson Creek
were required to travel to Dunn rather than to a more centrally located facility such as Lillington. Council
Member Hargis noted that the third floor of the courthouse in Lillington is entirely vacant and could readily
accommodate the office. He stated that the three (3) options outlined in the response —relocating to a newly
leased facility in Harnett County, constructing a new facility, or taking no action —were telling, and that taking
no action was entirely unacceptable. Mr. Hargis stated that he would be willing to speak before the County
Commission directly, asserting that the City's position is that the Probation Office should not remain in
downtown Dunn, citing the impact on businesses and their customers.
ANNOUNCEMENTS
Mayor Elmore announced the following upcoming events and meetings:
• A Work Session is scheduled for Tuesday, March 10, 2026, at 6:30 PM in the City Council Chambers.
• The Regular City Council Meeting will be held on Tuesday, March 24, 2026, at 6:30 PM.
• A Community Input Meeting regarding Codrington Park is scheduled for Monday, March 9, 2026,
from 6:00 PM to 8:00 PM. Mayor Elmore noted this would be the second such community input
meeting, following a well -attended session at the Senior Center a few weeks prior, and that the
marketing group conducting the study would present their findings. He encouraged residents to
attend.
• Several board and commission terms are set to expire on June 20, 2026. Mayor Elmore encouraged
interested residents to obtain an application online or at City Hall, as the City would be reviewing
applications in the coming weeks.
INFORMATION
No discussion was recorded under this item.
ADJOURNMENT
Motion by Council Member Sills, seconded by Mayor Pro Tem Gaulden, to adjourn. Motion carried
unanimously.
The meeting was adjourned at 7:08 p.m.
William P Elmore, Jr.
Mayor
Attest
Melissa R. Matti
City Clerk
CITY OF
DUNN
NORTH CAROLINA
XAue 6egu's/
Work Session, March 10, 2026
Agenda Item(s): Reconsideration of 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:
Attachment(s):
Yes
1) Original Rezoning Application
2) Original Staff Report
3) Map
Background
After a public hearing at the January 27, 2026, Regular Council meeting, rezoning request RZ-
25-04 — to rezone six (6) parcels along Fairground Road and Dogwood Knoll Street from
Shopping Center (C-2) District to the Residential 7 (R-7) District — was heard and denied by
Council. G.S. 160D-605 requires governing boards to adopt a Statement of Plan Consistency
and a Statement of Reasonableness when it adopts or rejects a petition for a zoning map
amendment. Due to administrative oversight, neither of these statements were adopted by
Council which subjects the decision to legal challenge. To cure the defect, Council must
vacate the original decision, advertise & schedule a new public hearing, and reconsider the
rezoning.
Budget Impact
None
Staff Recommendation(s)
Recommendation is that Council vacate the original decision on RZ-25-04, advertise &
schedule a new public hearing on RZ-25-04, and reconsider rezoning request RZ-25-04.
Page 1 of 2
Suggested Motions)
Motion to vacate the original decision on RZ-25-04, advertise & schedule a new public hearing
thereon set for the March 24, 2026, Regular Council Meeting, and at that meeting reconsider
rezoning request RZ-25-04.
Page 2 of 2
For Planning Department Use Only
C IT Y OP Case Number ?,T - 2 5- O�
Date Received 40NORTH
DLWN Fee Paid OO,p0
CAROL 1 N � Board Meeting
City Council Meeting
REZONING APPLICATION
OWNERSHIP INFORMATION:
Applicant: Cape Hatteras Partners, LLC
Applicant's Legal Interest in Property: Owner
Applicant's Address:
Property Owner:
919 524 8860
Phone Number: ( ) -
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 Pic pi 0
Tax PIN Number: _ -__..�-- .000 1517-61-6938.00 1517-61 8939.00
227a zss 1517-61-7939.00
Size (Sq. Ft. or Acres) 1.9 Street Frontage (ft) _ �n. 0/0 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: C-2 (See attached table)
Requested Zoning: R-7
B. Land Uses:
1. Existing land uses on property to be rezoned:
Vacant land
2. Existing or proposed land uses on all adjoining properties:
North R-10
South R-10 / C-2
East Hwy Comm West R-10
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.
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.
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.
WA/27-5
Signature Date
Sworn to and subscribed before me this arday of \ ,20 ").
•'*#‘5� B.a~y'I AO
s c• . Not,4, a to s Notary Public
O` A� r �:
BCC s
.
�>�•••. /Wi
.........•• My Commission Expires:
"•."v COUW,
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%); Highway Commercial (0.51%)
• Lot 9: Shopping Center(98.72%); Highway Commercial (0.84%);R-10(0.44%)
• Lot 10: Shopping Center(70.8%);R-10(29.2%)
piming CITY OF
imi DuNN
i887
PLANNING AND INSPECTIONS
102 N Power Ave • PO Box 1065 • Dunn,North Carolina 28335
(910)230-3505•CityofDunn.org
Case #: RZ-25-04
Meeting Date: January 6, 2026
PIN: 1517-62-6194.000, 1517-62-8128.000, 1517-61-6938.000,
1517-62-8110.000, 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.
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SITE DATA:
Acreage: 1.9 acres
Existing Use: Vacant land
Current Zoning: C-2
Proposed Zoning: 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.
O 1.2: Support residential development at varying densities based on the
Future Land Use Map, associated character area descriptions, and other
relevant plans.
O 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.
O 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.
CONSIDIEIRAT➢OHS:
G The Planning Board shall make a recommendation to approve or deny this
rezoning request.
e This rezoning request is conventional, not conditional, so no conditions of
approval may be imposed.
o Due to this rezoning request being conventional, all permitted uses in the
requested zoning district should be considered.
ATTACH M EFTS:
1. Rezoning Application
62020-P 366
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NOTICE OF PUBLIC HEARING
Notice is hereby given that a Public Hearing for a Rezoning application will be held by The Dunn City Council on March 24,
2026 at 6:30 P.M. in the Courtroom of the Dunn Municipal Building for the purpose of considering the following items:
SPECIAL USE APPLICATION SUP-26-01
Owner(s): Rodney Dunn
Applicant: Dunn Capital, LLC
PIN#s: 1516-89-4031.000,1516-89-4078.000,1516-89-5125.000
SUP-26-01 is a request to build townhomes in a multi-family district.
REZONING APPLICATION RZ-26-01
Owner(s): Cypress View Children's Home
Applicant: Cypress View Children's Home
PIN#s: 1506-76-7447.000
RZ-26-01 is a zoning map amendment request to rezone a conditional residential zoned parcel to multi-family(RM).
RECONSIDERATION OF REZONING APPLICATION RZ-25-04
Owner(s): Cape Hatteras Partners,LLC
Applicant: Cape Hatteras Partners,LLC
PIN#s: 1517-62-6194.000,1517-62-8128.000,1517-61-6938.000,1517-62-8110.000,1517-61-
8939.000, 1517-61-7939.000
RZ-25-04 is a zoning map amendment request to rezone the above-referenced parcels to Residential 7(R-7).
City Council will conduct a Public Hearing at said time and place to hear this application.All those wishing to speak on this
request are invited to attend and speak during the Public Hearing.
Please direct questions about this case to the Planning Department at 910-230-3505.
Copies of proposed items are available for review at the Planning Department during normal business hours
Monday through Friday. Written comments may be addressed to:
CITY OF DUNN PLANNING DEPARTMENT
P.O. BOX 1065
DUNN,NC 28335
ADVERTISE:
March 13, 2026
March 20, 2026
1
CITY OF
bid DuNN
1887
NORTH CAROLINA
lirll et&ce-ntotzot4 Iegu�!
Work Session, March 10, 2026
Agenda Item(s): Consideration of Rezoning / Map Amendment RZ-26-01, Cypress View
Children's Home
Presenter(s): Stephanie Goodrich, Senior Planner
Responsible Staff: Stephanie Goodrich, Senior Planner
Action Item: No
Attachment(s): 1) Planning Board Agenda Packet Information
Background
RZ-26-01 is a rezoning request submitted by Cypress View Children's Home PIN 1506-76-
7447.000 located on Susan Tart Road. The request is to go from R-7 Conditional Zoning to RM,
Residential Multifamily. The conditions on the current zoning are a provision to have lot sizes
smaller than R7 would allow in the conventional zoning classification.
At the March 3rd Planning Board meeting the Board unanimouslyvoted to recommend Approval.
This item will be placed on the March 24, 2026 Regular Meeting Agenda.
Budget Impact
None
Staff Recommendation(s)
None at this time.
Suggested Motion(s)
None
Page 1 of 2
For Planning Department Use Only
IT Y OF Case Number
�a - DUNN Date Received
Fee Paid
:zy
NORTH CAR L1i%ii\ Board Meeting
City Council Meeting
REZONING APPLICATION
OWNERSHIP INFORMATION:
Applicant: Laura White Phone Number: ( 984)800 -1903
Applicant's Legal Interest in Property: Executive Director of Corporation
Applicant's Address: 808 Barneswyck Drive, Fuquay Varina, NC 27526
Property Owner:
Cypress View Children's Home
Owner's Address: PO Box 72, Kipling, NC 27543
Date Property Acquired: 03/04/2025 Deed Reference: Book 4_ Page 0612
Tax PIN Number: 1506_76 _7447 .000
Size(Sq.Ft. or Acres) 19'55 Street Frontage(ft)
Location/Address: Susan Tart Road, Dunn, NC 28334
Attach a legal description(Metes and Bounds Description)of the area requested.
ZONING REQUEST:
A. Existing Zoning: Conditional-Residential
Requested Zoning: Residential-Multi Family
B. Land Uses:
1. Existing land uses on property to be rezoned: N/A
2. Existing or proposed land uses on all adjoining properties:
North Residential South 0& I
East 0& I West Conservation
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.
See Attached
4
ADJOINING PROPERTY OWNERS
(WITHIN 100 FEET OF REQUESTED CHANGE)
NAME MAILING ADDRESS PIN NUMBER
1, Cypress View Children's Home 808 Barneswyck Drive
Fuquay Varina, NC 27526 1506 _ 76 _ 7447 .000
2. Susan Tart Properties LLC 126 N Ennis Street
Fuquay Varina, NC 27526 1506 _ 66 _ 9838 .000
3. Harnett Health Systems, Inc PO Box 1706
Dunn, NC 28335 1506 _ 86 _ 9966 .000
4 Toby Dale and 1152 Old Hamilton Road
Amy Parker Pope Dunn, NC 28334 1506 65 _ 4930 .000
5. SDH Raleigh, LLC 2520 Reliance Avenue
Apex, NC 27539 1506 _ 87 _ 1178 .000
6 Danny E. Norris PO Box 727
Dunn, NC 28335 1506 _ 75 _ 8723 .000
7, Lou Ann Patrick 2121 Charles Newland Road
Dunn, NC 28334 1506 _ 86 - 3356 .000
8. Casper Road, LLC PO Box 277
Benson, NC 27504 1506 _ 85 _ 8513 .000
9. Susan Tart Property LLC 126 N Ennis Street
Fuquay Varina, NC 27526 1506 _ 77 _ 7440 .000
10.
.000
11.
.000
12.
-
.000
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 8' day of 42&C?in1Y ,20 2c.
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CurryENGINEERING
November 20, 2025
RE: Neighborhood Meeting for Rezoning Application
Dear Neighbor:
This letter is to invite you to a meeting to review a zoning amendment for the property located on
Susan Tart Road (Non-Addressed, PIN 1506-76-7447). This proposal would be to amend the zoning
for this property such that a Children's Home could be permitted for construction.The proposal is to
change the subject property from Conditional Residential to Residential-Multi Family. Please see
attached map for specific property.
Meeting Information:
Date: Tuesday, December 16, 2025
Location: Banquets Off Broad
110 S Wilson Avenue
Dunn, NC 28334
Time: 5:30 to 7:00 PM
Please feel free to contact me with any questions or concerns regarding this meeting. I can be reached
at donCdcurrveng.com or call at 919-552-0849 ext 101.
Sincerely,
The Curry Engineering Group, PLLC
11/cmt
Donald L. Curry,Jr
President
T (919) 552-0849 205 S.Fuquay Avenue GJ0R0( E NG/+F
F (9191 552-2043 Fuquay-Varina,NC 27526 <C`
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PLANNING AN\ D INSPECTIONS
102 N Powell Ave • PO Box 1065 • Dunn,North Carolina 28335
(910)230-3505•CityofDunn.org
Case #: RZ-26-01
Meeting Date: March 3, 2026
PIN: 1506-76-7447.000
Applicant: Cypress View Children's Home
Owner: Cypress View Children's Home
Location: Susan Tart Lane, Unaddressed
REQUEST: The applicant is requesting a zoning map amendment to rezone the
subject property from A conditional residential planned unit development to
multi-family. The subject property is shown in orange below.
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SITE DATA:
Acreage: 19.55 acres
Existing Use: Undeveloped
Current Zoning: R-7 CZDPUD Residential Conditional
Proposed Zoning: RM Residential Multifamily
Utilities: City Water/Sewer
SURROUNDING PROPERTY DATA:
Direction Zoning Existing Use
North R-7 CZDPUD - Residential Conditional Vacant
South 01 - Office and Institutional Vacant
West RD Rural District and CV Conservation Agricultural / Floodway
(Erwin)
East 01 - Office and Institutional Hospital
LAND USE PLAN CONSISTENCY:
This rezoning request is consistent with the City of Dunn Land Use Plan.
The Future Land Use Map designates this property as a Hospital District,
emphasizing supporting uses that include housing and accommodations.
Uses permitted in the RM zoning district are compatible with the City's vision for
the area surrounding the Hospital and the protected lands on the western side of
the subject parcel. In close proximity is the Avery Chase development, which was
part of the rezoning to R-7 Conditional Use, which was for single family
development at a smaller lot size than the UDO would allow. Therefore, the
proposed zoning would be harmonious with existing conditions in the area.
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 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.
RECOMMENDATION:
Staff recommends approval of RZ-26-01 based on the requested zoning's
consistency with the Dunn Land Use Plan. The uses permitted in the existing
conditional use and the proposed use are similar in nature, with compact housing.
Multifamily housing is compatible with the City's vision for areas designated as
the Hospital district on the Future Land Use Map. Uses permitted in Multi Family
are compatible with the City's vision for this character area, and properties
adjacent to the subject property are zoned as compact residential, although single
family.
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.
ATTACH M ENTS:
1. Rezoning Application
NOTICE OF PUBLIC HEARING
Notice is hereby given that a Public Hearing for a Rezoning application will be held by The Dunn City Council on March 24,
2026 at 6:30 P.M. in the Courtroom of the Dunn Municipal Building for the purpose of considering the following items:
SPECIAL USE APPLICATION SUP-26-01
Owner(s): Rodney Dunn
Applicant: Dunn Capital,LLC
PIN#s: 1516-89-4031.000,1516-89-4078.000, 1516-89-5125.000
SUP-26-01 is a request to build townhomes in a multi-family district.
REZONING APPLICATION RZ-26-01
Owner(s): Cypress View Children's Home
Applicant: Cypress View Children's Home
PIN#s: 1506-76-7447.000
RZ-26-01 is a zoning map amendment request to rezone a conditional residential zoned parcel to multi-family(RM).
RECONSIDERATION OF REZONING APPLICATION RZ-25-04
Owner(s): Cape Hatteras Partners,LLC
Applicant: Cape Hatteras Partners,LLC
PIN#s: 1517-62-6194.000,1517-62-8128.000, 1517-61-6938.000,1517-62-8110.000,1517-61-
8939.000, 1517-61-7939.000
RZ-25-04 is a zoning map amendment request to rezone the above-referenced parcels to Residential 7(R-7).
City Council will conduct a Public Hearing at said time and place to hear this application.All those wishing to speak on this
request are invited to attend and speak during the Public Hearing.
Please direct questions about this case to the Planning Department at 910-230-3505.
Copies of proposed items are available for review at the Planning Department during normal business hours
Monday through Friday. Written comments may be addressed to:
CITY OF DUNN PLANNING DEPARTMENT
P.O. BOX 1065
DUNN,NC 28335
ADVERTISE:
March 13, 2026
March 20, 2026
1
CITY OF
i
1887
NORTH CAROLINA
Gt1het&ce ,6egint l
Work Session, March 10, 2026
Agenda Item(s): USDA Loan Letter of Conditions- Public Works Equipment
Presenter(s): Cary McNallan, Finance Director
Responsible Staff: Cary McNallan, Finance Director
Action Item: Yes
Attachment(s): 1) USDA Letter of Intent to Meet Conditions
2) USDA Loan Resolution
Background
On August 12, 2025, a public hearing was held for input for a United States Department of
Agriculture (USDA)financing application for the purchase of a Public Works Boom Truck and
cab tractor. The estimated costs of these purchases were $290,000 and were approved as
part of the FY26 budget process.
The City has received notification that USDA has approved $275,000 of loan financing for
these purchases at a not-to-exceed interest rate of 4.625% for a period of ten years. The
estimated annual principal and interest payment is $34,969 and would be funded by the
General Fund.
Staff Recommendation(s)
Staff recommends the approval of the USDA documents to secure this financing.
Budget Impact
The first debt payment for this loan, estimated at $34,969, would be in FY27 and will be
included in the recommended General Fund budget.
Suggested Motion(s)
Motion to approve the resolution and related letter of conditions from the USDA forthe Public
Works equipment loan and authorize the Mayor and the City staff to execute all related USDA
documents.
Page 1 of 1
Position 5
USDA LOAN RESOLUTION
Form RD 1942-47 FORM APPROVED
(Rev. 12-97) (Public Bodies) OMB NO.0575-0015
A RESOLUTION OF THE City Council
OF THE City of Dunn
AUTHORIZING AND PROVIDING FOR THE INCURRENCE OF INDEBTEDNESS FOR THE PURPOSE OF PROVIDING
A PORTION OF THE COST OF ACQUIRING,CONSTRUCTING,ENLARGING,IMPROVING,AND/OR EXTENDING ITS
2026 Grapple Truck and Utility Tractor
FACILITY TO SERVE AN AREA LAWFULLY WITHIN ITS JURISDICTION TO SERVE.
WHEREAS,it is necessary for the City of Dunn
(Public Body)
(herein after called Association)to raise a portion of the cost of such undertaking by issuance of its bonds in the principal amount of
$275,000.00
pursuant to the provisions of N.C. General Statutes 160 ;and
WHEREAS,the Association intends to obtain assistance from the Rural Housing Service,Rural Business-Cooperative Service,Rural
Utilities Service,or their successor Agencies with the United States Department of Agriculture,(herein called the Government)acting
under the provisions of the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) in the planning, financing, and
supervision of such undertaking and the purchasing of bonds lawfully issued, in the event that no other acceptable purchaser for such
bonds is found by the Association:
NOW THEREFORE in consideration of the premises the Association hereby resolves:
1. To have prepared on its behalf and to adopt an ordinance or resolution for the issuance of its bonds containing such items
and in such forms as are required by State statutes and as are agreeable and acceptable to the Government.
2. To refinance the unpaid balance,in whole or in part,of its bonds upon the request of the Government if at any time it shall
appear to the Government that the Association is able to refinance its bonds by obtaining a loan for such purposes from
responsible cooperative or private sources at reasonable rates and terms for loans for similar purposes and periods of time as
required by section 333(c)of said Consolidated Farm and Rural Development Act(7 U.S.C. 1983(c)).
3. To provide for,execute,and comply with Form RD 400-4,"Assurance Agreement,"and Form RD 400-1,"Equal Opportunity
Agreement,"including an"Equal Opportunity Clause,"which clause is to be incorporated in,or attached as a rider to,each
construction contract and subcontract involving in excess of$ 10,000.
4. To indemnify the Government for any payments made or losses suffered by the Government on behalf of the Association.
Such indemnification shall be payable from the same source of funds pledged to pay the bonds or any other legal permissible
source.
5. That upon default in the payments of any principal and accrued interest on the bonds or in the performance of any covenant or
agreement contained herein or in the instruments incident to making or insuring the loan,the Government at its option may(a)
declare the entire principal amount then outstanding and accrued interest immediately due and payable,(b)for the account of the
Association(payable from the source of funds pledged to pay the bonds or any other legally permissible source),incur and pay
reasonable expenses for repair,maintenance,and operation of the facility and such other reasonable expenses as may be necessary
to cure the cause of default,and/or(c)take possession of the facility,repair,maintain,and operate or rent it.Default under the
provisions of this resolution or any instrument incident to the making or insuring of the loan may be construed by the Government
to constitute default under any other instrument held by the Government and executed or assumed by the Association,and default
under any such instrument may be construed by the Government to constitute default hereunder.
6. Not to sell,transfer,lease,or otherwise encumber the facility or any portion thereof,or interest therein,or permit others to
do so without the prior written consent of the Government.
7. Not to defease the bonds,or to borrow money,enter into any contract or agreement,or otherwise incur any liabilities for
any purpose in connection with the facility(exclusive of normal maintenance)without the prior written consent of the
Government if such undertaking would involve the source of funds pledged to pay the bonds.
8. To place the proceeds of the bonds on deposit in an account and in a manner approved by the Government.Funds may be
deposited in institutions insured by the State or Federal Government or invested in readily marketable securities backed by
the full faith and credit of the United States.Any income from these accounts will be considered as revenues of the system.
9. To comply with all applicable State and Federal laws and regulations and to continually operate and maintain the facility in
good condition.
10. To provide for the receipt of adequate revenues to meet the requirements of debt service,operation and maintenance,and the
establishment of adequate reserves.Revenue accumulated over and above that needed to pay operating and maintenance,debt
service and reserves may only be retained or used to make prepayments on the loan.Revenue cannot be used to pay any
expenses which are not directly incurred for the facility financed by the Government.No free service or use of the facility will
be permitted.
According to the Paperwork Reduction Act of 1995,no persons are required to respond to a collection of information ormation unless it displays a valid OMB control number.The valid OMB
control number for this information collection is 0575-0015.The time required to complete this in formation collection is estimated to average 1 hour per response,including the time for
reviewing instructions,searching existing data sources,gathering and maintaining the data needed,and completing and reviewing the collection of information.ormation.
-2-
11. To acquire and maintain such insurance and fidelity bond coverage as may be required by the Government.
12. To establish and maintain such books and records relating to the operation of the facility and its financial affairs and to
provide for required audit thereof as required by the Government,to provide the Government a copy of each such audit
without its request,and to forward to the Government such additional information and reports as it may from time to time
require.
13. To provide the Government at all reasonable times access to all books and records relating to the facility and access to the
property of the system so that the Government may ascertain that the Association is complying with the provisions hereof
and of the instruments incident to the making or insuring of the loan.
14. That if the Government requires that a reserve account be established and maintained,disbursements from that account
may be used when necessary for payments due on the bond if sufficient funds are not otherwise available.With the prior
written approval of the Government,funds may be withdrawn for:
(a)Paying the cost of repairing or replacing any damage to the facility caused by catastrophe.
(b)Repairing or replacing short-lived assets.
(c)Making extensions or improvements to the facility.
Any time funds are disbursed from the reserve account,additional deposits will be required until the reserve account has
reached the required funded level.
15. To provide adequate service to all persons within the service area who can feasibly and legally be served and to obtain the
Government's concurrence prior to refusing new or adequate services to such persons.Upon failure to provide services
which are feasible and legal,such person shall have a direct right of action against the Association or public body.
16. To comply with the measures identified in the Government's environmental impact analysis for this facility for the purpose
of avoiding or reducing the adverse environmental impacts of the facility's construction or operation.
17. To accept a grant in an amount not to exceed$ 0
under the terms offered by the Government;that the
and of the Association are hereby authorized and empowered to take all action necessary
or appropriate in the execution of all written instruments as may be required in regard to or as evidence of such grant;and
to operate the facility under the terms offered in said grant agreement(s).
The provisions hereof and the provisions of all instruments incident to the making or the insuring of the loan,unless
otherwise specifically provided by the terms of such instrument,shall be binding upon the Association as long as the
bonds are held or insured by the Government or assignee.The provisions of sections 6 through 17 hereof may be provided
for in more specific detail in the bond resolution or ordinance;to the extent that the provisions contained in such bond
resolution or ordinance should be found to be inconsistent with the provisions hereof,these provisions shall be construed
as controlling between the Association and the Government or assignee
The vote was: Yeas Nays Absent
IN WITNESS WHEREOF,the city Council of the
City of Dunn has duly adopted this resolution and caused it
to be executed by the officers below in duplicate on this 10th day of March , 2026
(SEAL)
By William Elmore, Jr.
Attest:
Title Mayor
Melissa Matti, City Clerk
Title
-3-
CERTIFICATION TO BE EXECUTED AT LOAN CLOSING
I,the undersigned,as of the City of Dunn
hereby certify that the of such Association is composed of
members,of whom ,constituting a quorum,were present at a meeting thereof duly called and
held on the day of ;and that the foregoing resolution was adopted at such meeting
by the vote shown above.I further certify that as of ,the date of closing of the loan from the Government,said resolution
remains in effect and has not been rescinded or amended in any way.
Dated,this day of
Title
USDA
United States Department of Agriculture
Date : March 10, 2026
City of Dunn
Attn:William Elmore,Jr., Mayor
401 East Broad Street-PO Box 1065
Dunn, NC 28334
Subject: Letter of Conditions for a Community Facilities Program Loan
2026 Grapple Truck and John Deere Utility Cab Tractor
Dear Mayor Elmore:
This letter,with attachments,establishes conditions that must be understood and agreed to by the
applicant before further consideration may be given to the application for Federal Assistance. The
State and Area Office staff of USDA Rural Development (RD or Agency) will administer the loan
and/or grant funds for this project on behalf of the Rural Housing Service. All parties may access
information and regulations referenced in this letter at our website located at:
https://www.rd.usda.gov/programs-services/community-facilities. Any changes in project cost,
source of funds, scope of services, or any other significant changes in the project or applicant(this
includes significant changes in the applicant's financial condition, operation, organizational
structure or executive leadership) must be reported to and approved by RD by written amendment
to this letter. Any changes not approved by RD will be cause for discontinuing processing of the
application. If you do not meet the conditions of this letter,the Agency reserves the right to withdraw
Agency funding.
This letter is not to be considered as loan approval or as representation to the availability of funds.
The application can be processed on the basis of a RD loan not to exceed$275,000.00Funds for this
project are provided by the Rural Housing Service (RHS).
Please complete and return the attached Form RD 1942-46, "Letter of Intent to Meet Conditions,"
and Form RD 1940-1, "Request for Obligation of Funds,"within the next ten (10) days, if you desire
that we give further consideration to your application. The execution of these and all other
documents required by RD must be authorized by appropriate resolutions of the applicant's
governing body.
The loan will be considered approved on the date Form RD 1940-1, "Request for Obligation of
Funds," is mailed to the applicant by RD. This is also the date that the interest rate is established. If
the interest rate is lower at the time of loan closing,you must make a request in writing to receive the
lower rate in effect.
The loan will be repayable over a period not to exceed 10 years from the date of loan closing at the
intermediate interest rate.The first combined principal and/or interest payment will be due one (1)
year following loan closing.The loan repayment will be made in amortized with annual installments.
City of Dunn —2026 Grapple Truck and Tractor March 10, 2026
Letter of Conditions
Page 12
Project Budget—Based on Standard Form 424, "Application for Federal Assistance," the project
cost and funding will be as follows:
a.
Project Expenses Costs
Development
Land &Rights
Legal $1,750.00
Architect Fees
Interest
Equipment $276,544.00
Contingencies
Refinancing
Other(Described)
Resident Inspection
Total $278,294.00
Source of Funds
b.
Funds Total
USDA Loan $275,000.00
Applicant Contributions $3,294.00
Other
Total $278,294.00
Any changes in funding sources following obligation of Agency funds must be reported to the
processing official. Project feasibility and funding will be reassessed if there is a significant change
in project costs after bids are received. If actual project costs exceed the project cost estimates,an
additional contribution by the applicant may be necessary.
The applicant will ensure projects are completed in a timely, efficient, and economical manner.
Section I of the attached conditions (Items 1-21) must be satisfied prior to interim loan closing or
before construction begins,whichever occurs first, in either case not later than one(1)year from the
date of this letter. The Agency reserves the right to cancel funds if the applicant does not comply
with all requirements as presented or subsequently modified,as needed.
In the event the project has not advanced to the point of construction within one (1)year, RD
reserves the right to discontinue the processing of the application.
This Letter of Conditions will require written approval to extend the Letter of Conditions offer
after one year from the date of this letter.
City of Dunn —2026 Grapple Truck and Tractor March 10, 2026
Letter of Conditions
Page 13
Also, please be aware of statute 31 US Code §1552 outlining procedure for appropriation
account for definite time period of five years:"on September 30th of the 5th fiscal year after the
period of availability ends,account shall be closed any remaining balance shall be cancelled.
If you have any questions,feel free to contact this office.
Sincerely,
TOBAIS FULLWOD
AREA SPECIALIST
cc: Community Programs Director, USDA Rural Development,
City of Dunn —2026 Grapple Truck and Tractor March 10, 2026
Letter of Conditions
Page 14
ATTACHMENT TO LETTER OF CONDITIONS
SECTION I. CONDITIONS TO BE SATISFIED PRIOR TO LOAN CLOSING OR BEFORE
CONSTRUCTION BEGINS,WHICHEVER OCCURS FIRST
1. Reserve_s__The applicant will establish a separate debt service reserve account in an amount
at least equal to an average annual loan installment. This reserve will be accumulated at the
rate of at least one-tenth of the average annual installment each year until the required level
is reached,which is one average annual loan installment. The reserve account balance must
be reported annually to the State Office and included in the audit as a separate and
identifiable line item as restricted.
For any fiscal year end in which the debt service reserve account balance is less than the
required account total;the applicant will provide the Agency with a twelve-month budget and
plan to correct the cash shortfall.
2. Disbursement of Funds
a. The applicant will provide evidence that funds from other sources will be made available
for the project cost in the amount of$3,294.00. This evidence should include a copy of
the loan/grant award that addresses how funds will be disbursed.
b. The applicant's contribution of funds toward the project cost shall be considered the first
funds expended and must be deposited in its project account before construction is
started. The applicant must provide evidence of this deposit to RD.
c. Agency funds will not be used to pre-finance funds committed to the project from other
sources.
d. The Debt Collection Improvement Act(DCIA) of 1996 requires that all Federal payments
be made by Electronic Funds Transfer/Automated Clearing House (EFT/ACH).
Applicants receiving payments by EFT will have funds directly deposited to a specified
account at a financial institution with funds being available to the recipient on the date
of payment. The borrower should complete Form SF-3881, Electronic Funds Transfer
Payment Enrollment Form,for each account where funds will be electronically received.
The completed form(s) must be received by RD at least forty-five (45) days prior to the
first advance of funds. Failure to do so could delay loan closing.
e. The applicant must formally adopt Form RD 400-4,"Assurance Agreement,"at a properly
called meeting of the governing body. Adoption of this document should be made a part
of the official minutes of the meeting. A certified copy of the minutes is to be attached to
the resolution and delivered to Rural Development.
Security Requirements
City of Dunn —2026 Grapple Truck and Tractor March 10, 2026
Letter of Conditions
Page 15
a. At loan closing the applicant will execute the attached Form RD 1942-47, "Loan
Resolution (Public Bodies)". Please note the refinancing provision in paragraph 2. Also,
on page 3 there is a certification to be executed at loan closing.
b. At loan closing, the applicant will execute the attached Form RD 1942-9 "Loan
Resolution (Security Agreement)". Please review the refinancing provision on page 4,
section 7. Also note the certification on the bottom of page 4,which is to be executed at
the time of loan closing.
c. A UCC Financing Statement lien search will be conducted by the Agency to identify lien
priority position. Form UCC-1, "Financing Statement," with Form UCC-1Ad, "UCC
Financing Statement Addendum," as appropriate, or other action as allowed by State
statute,will be prepared by RD and filed with the North Carolina Secretary of State and a
copy recorded with the County Recorder (if applicable) to perfect a
security interest in collateral to encumber the following:
A $38.00 filing fee (fee subject to change based on current North Carolina Secretary of
State fee schedule) payable to the Secretary of State must be provided to the Agency at
least 90 days prior to loan closing.
d. An Installment Purchase Contract will be secured by the United States of America,Acting
through the Rural Housing Service being named as the registered lien holder on the
Certificate of Title for the vehicle being financed.
e. The applicant is required to execute Form RD 440-15,Security Agreement, if required by
OGC.
f. The applicant and the applicant's financial institution(s) will execute the USDA RHS
Community Facility Program, Deposit Account Control Agreement.This is required on all
account(s) the applicant has which the Agency will be taking a security interest in,
including but not limited to, all primary accounts where the facilities operating and non-
operating revenues are deposited and any accounts holding the debt service reserve(s)
for the Agency loan(s). Please note the Termination of Agreement provision,item number
8.
3. Insurance and Bonding Requirements—The applicant must provide evidence of adequate
insurance and fidelity bond coverage by loan closing or start of construction, whichever
occurs first. Adequate coverage, in accordance with RD's regulations, must
then be maintained for the life of the loan and evidence must be submitted to RD annually.
Evidence that coverage is being maintained must be provided annually thereafter. It is the
City of Dunn —2026 Grapple Truck and Tractor March 10, 2026
Letter of Conditions
Page 16
responsibility of the applicant and not that of RD to assure that adequate insurance and
fidelity bond coverage is maintained. Applicants are encouraged to review coverage
amounts and deductible provisions with their attorney, consulting engineer, and/or
insurance provider(s).
a. Property Insurance—Fire and extended coverage will be required on all above-ground
structures, including applicant-owned equipment and machinery housed therein.
Provide RD with proof of coverage and attach Lender's Loss Payable Endorsement(438
BFU or equivalent) naming the UNITED STATES OF AMERICA as lender.
b. Corporate Liability Insurance - The Applicant will provide public liability, and property
damage insurance in an amount to adequately protect the applicant from civil action
arising from the function of the applicant relative to the project.
c. Workers' Compensation Insurance—The applicant will be required to carry workers'
compensation insurance for all employees in accordance with the State law.
d. General liability and vehicular coverage must be maintained.
e. Fidelity Bond—Persons who have access to the funds and custody to any property will
be covered bya fidelity bond or an adequate crime policythat protects the applicant from
an employee crime. Coverage may be provided either for all individual positions or
persons, or through "blanket" coverage providing protection for all appropriate
employees and/or officials. The amount of coverage required by RD will be sufficient to
cover the total annual debt and reserve service requirements for the loan. The United
States of America will be named as co-obligee on the bond. A certified power-of-attorney
with effective date will be attached to each bond.
4. Civil Rights&Equal Opportunity—The borrower has received an award of Federal funding
and is required to comply with U.S. statutory and public policy requirements, including but
not limited to:
a. Section 504 of the Rehabilitation Act of 1973—Under Section 504 of the Rehabilitation
Act of 1973, as amended (29 U.S.C. 794), no handicapped individual in the United States
shall,solely by reason of their handicap, be excluded from participation in, be denied the
benefits of, or be subjected to discrimination under any program or activity receiving
Agencyfinancial assistance.The Standard for compliance is the Architectural Barriers Act
Accessibility Standards(ABAAS).
b. Civil Rights Act of 1964—All recipients are subject to, and facilities must be operated in
accordance with, Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) and 7
CFR 1901,Subpart E, particularly as it relates to conducting and reporting of compliance
reviews. Instruments of conveyance for loans and/or grants subject to the Act must
contain the covenant required by Paragraph 1901.202(e)of this Title.
City of Dunn —2026 Grapple Truck and Tractor March 10, 2026
Letter of Conditions
Page 17
c. The Americans with Disabilities Act(ADA)of 1990-This Act (42 U.S.C. 12101 et seq.)
prohibits discrimination on the basis of disability in employment, State and local
government services, public transportation, public accommodations, facilities, and
telecommunications.
d. Age Discrimination Act of 1975-This Act(42 U.S.C.6101 et seq.)provides that no person
in the United States shall on the basis of age, be excluded from participation in, be denied
the benefits of, or be subjected to discrimination under any program or activity receiving
Federal financial assistance.
e. Controlled Substances Act - Even though state law may allow some activities, as a
recipient of Federal funding,you are subject to the Controlled Substances Act. Specific
questions about the Controlled Substances Act should be directed to the Servicing
Official who will contact OGC, as appropriate.
f. Limited English Proficiency(LEP)- LEP statutes and authorities prohibit exclusion from
participation in, denial of benefits of, and discrimination under Federally assisted and/or
conducted programs on the ground of race, color, or national origin. Title VI of the Civil
Rights Act of 1964 covers program access for LEP persons. LEP persons are individuals
who do not speak English as their primary language and who have a limited ability to read,
speak, write, or understand English. These individuals may be entitled to language
assistance, free of charge. The recipient must take reasonable steps to ensure that LEP
persons receive the language assistance necessary to have meaningful access to USDA
programs, services,and information the recipient provides.
Agency financial programs must be extended without regard to race, color, religion, sex, national
origin, marital status, age, or physical or mental handicap. The recipient must display posters
(provided by the Agency)informing users of these requirements,and the Agency will monitor
the recipient's compliance with these requirements during regular compliance reviews.
As a recipient of RD funding, you are required to post a copy of the Non-Discrimination
Statement listed below in your office and include in full,on all materials produced for public
information, public education, and public distribution both print and non-print.
Non-Discrimination Statement
"This institution is an equal opportunity provider and employer."
If you wish to file a Civil Rights program complaint of discrimination, complete the USDA
Program Discrimination Complaint Form, found online at https://www.usda.gov/about-
usda/general-information/staff-offices/office-assistant-secretary-civil-rights/how-file-
program-discrimination-complaint, or at any USDA office, or call(866) 632-9992 to request
the form.You may also write a letter containing all of the information requested in the form.
Send your completed complaint form or letter to us by mail at U.S.Department of Agriculture,
Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, S.W., Stop
9410, Washington, D.C. 20250-9410, by fax (202) 690-7442 or email at
program.intakeCfusda.gov.
City of Dunn —2026 Grapple Truck and Tractor March 10, 2026
Letter of Conditions
Page 18
If the material is too small to permit the full statement to be included, the material at a
minimum includes the statement in print size no smaller than the text that"This institution
is an equal opportunity provider and employer."
5. Written Agreements for Professional Services
a. The legal service agreement submitted by Pope Law, PLLC is satisfactory to RD.
6. Electronic Funds Transfer—All loan funds will be transferred to borrowers via Electronic
Funds Transfer/Automated Clearinghouse Systems (EFT/ACH). Normal transfers will be
ACH, with money being placed in Borrower's account two business days after the RD
processing office approves the pay request.The applicant must submit the Electronic Funds
Transfer Form containing the banking (ACH) information to the RD Servicing Office at least
90 days prior to the date of loan closing. Failure to do so could delay loan closing.
7. Automatic Payments -The applicant is required to participate in the Pre-Authorized Debit
(PAD) payment process for all new and existing indebtedness to RD. It will allow for the
applicant's payment to be electronically debited from its account on the date their payment
is due. Form RD 3550-28, "Authorization Agreement for Pre-Authorized Payments," is
attached. Please fill out and sign your"Individual/Company Information"section,then have
your financial institution/bank fill out the bottom portion prior to submitting the form to the
RD service office.
8. Loan Closing—The permanent loan will be closed in accordance with RD instructions, the
legal requirements of the USDA OGC, and this Letter of Conditions. All DRAFT applicable
closing documents, including bond documents, must be submitted to RD at least 90 days
prior to the planned closing date. Prior to loan closing,a request for reimbursement must be
submitted to RD with all the supporting invoices.
9. Operating Budget— Prior to loan closing, RD must review the applicant's approved
operating budget. The budget must balance and include the proposed USDA debt service
and reserve obligations. Each year the USDA loan is outstanding,the applicant will adopt an
annual budget which provides for the annual debt service and reserve payments.
10. System for Award Management Registration and Unique Entity ID—You as the recipient
must maintain the currency of your information in the System for Award Management(SAM)
until you submit the final financial report required under this award and all grant funds under
this award have been disbursed or de-obligated, whichever is later. This requires that you
review and update the information at least annually after the initial registration, and more
frequently if required by changes in your information or another award term. Recipients can
register on-line at(https://www.sam.gov)You as the recipient may not make a sub-award to
an entity unless the entity has provided its Unique Entity ID from SAM.gov to you.
11. Suspension and Debarment Screening—You will be asked to provide information on the
principals of your organization. Agency staff must conduct screening for suspension and
debarment of the entity,as well as its principals through the Do Not Pay Portal.
a. Principal—
City of Dunn —2026 Grapple Truck and Tractor March 10, 2026
Letter of Conditions
Page 19
i. An officer, director, owner, partner, principal investigator, or other person
within a participant with management or supervisory responsibilities related
to a covered transaction;or
ii. A consultant or other person,whether or not employed by the participant or
paid with federal funds,who—
1. Is in a position to handle federal funds;
2. Is in a position to influence or control the use of those funds;or,
occupies a technical or professional position capable of substantially
influencing the development or outcome of an activity required to
perform the covered transaction. (2 CFR§180.995)
12. Litigation. You are required to notify the Agency within 30 days of receiving notification of
being involved in any type of litigation prior to loan closing or start of construction,whichever
occurs first. Additional documentation regarding the situation and litigation may be
requested by the Agency.
SECTION III. LOAN CONDITIONS TO BE SATISFIED AFTER PROJECT COMPLETION
1. Financial Statements—To be submitted on an annual basis in accordance with the
following:
a. 2 CFR Part 200, Subpart F establishes audit requirements that borrowers and grantees
must follow. Borrowers and grantees who expend$1,000,000 or more in Federal awards
in their fiscal year, have CF loan balances totaling$1,000,000 or more,or a combination
of the two must submit an audit in accordance with 2 CFR 200, Subpart F.
Federal funds expended during a borrowers fiscal year: 2 CFR Part 200, Subpart F
requires a borrower that expends $1,000,000 or more in Federal awards in their fiscal
year to submit a single or program-specific audit. A CF direct loan, guaranteed loan,
and/or grant,or any combination thereof,are considered Federal awards.
Grantees: Grantees that expend $1,000,000 or more in a year in Federal awards must
have an audit conducted in accordance with 2 CFR Part 200, Subpart F except when the
grantee elects to have a program specific audit conducted.
Prior loan and loan guarantees: 2 CFR Part 200, §200.502(b) establishes the basis for
including loan and loan guarantees (loans) on the Schedule of Expenditures of Federal
Awards(SEFA).The value of new loans made or received during the audit period plus the
beginning of the audit period balance of loans from previous years for which the Federal
Government imposes continuing compliance requirements must be reported on the
SEFA. CF Program loans require its borrowers to meet continuing compliance
requirements. Continuing compliance requirements that CF borrowers must meet
include, but are not limited to,funding reserves, maintaining insurance,deposit funds in
Federally insured banks, meet financial covenants, maintain sufficient debt service
ratios, comply with civil rights requirements, and comply with additional requirements
established as part of the loan approval process.
City of Dunn —2026 Grapple Truck and Tractor March 10, 2026
Letter of Conditions
Page M10
Borrowers and grantees must submit audits within nine months from the end of the
borrower's fiscal year or 30 days after receipt from the auditor,whichever is earlier.The
audited financial statements must be submitted to the Federal Audit Clearinghouse.
b. All borrowers exempt from the audit requirements cited in 1(a) above, and who do not
otherwise have annual audits, will within 60 days following the end of the borrower's
fiscal year furnish RD with annual financial statements,consisting of a verification of the
organizations, balance sheet and statement of income and expenses.
Grantees exempt from the audit requirements cited in 1(a) above, and who do not
otherwise have annual audits, will within 60 days following the end of the fiscal year in
which any grant funds were expended furnish RD with annual financial statements
consisting of a verification of the organizations, balance sheet and statement of income
and expenses.
The borrower/grantee may use Forms RD 442-2 "Statement of Budget, Income and
Equity"and 442-3"Balance Sheet",or similar format to provide the financial information.
For borrowers using Form RD 442-2, the dual purpose of fourth quarter management
reports, when required, and annual statements of income will be met with this one
submission.
2. Quarterly Reports—A quarterly management report will be required for the first year of
operations for new borrowers,and existing borrowers operating a new facility,starting a new
type of operation or proposing a significant expansion of an existing facility. The borrower
may use Form RD 442-2 or similar format to provide this information, and the reports are to
be signed by the appropriate borrower official and submitted within 30 days of each quarter's
end.
3. Audit agreement—If you are required to obtain the services of a licensed Certified Public
Accountant(CPA),you must enter into a written audit agreement with the auditor. The audit
agreement may include terms and conditions that you and auditor deem appropriate.
4. Limitations of Additional Debt-You will not borrow any money from any source or enter into
any contract or agreement or incur any other liabilities in connection with making extensions
or improvements to the facility,exclusive of normal maintenance,without obtaining the prior
written consent of the Agency.
5. Compliance Reviews—RD will be required to periodically conduct a compliance review of
this facility and operation.Compliance reviews will be completed one year after loan closing
and every three years thereafter by utilizing Form RD 400-8. You will need to provide the local
office the statistical information as requested.The Agency will conduct regular compliance
reviews of the borrower and its operation in accordance with Architectural Barriers Act(ABA)
Accessibility Guidelines.
6. Continuation of Financing Statement-At the time of renewal (every 5 years)the borrower
must provide a$38.00(or applicable filing fee)check payable to the Secretary of State(fee
subject to change based on current Secretary of State fee schedule)for the continuation of
the Financing Statement until the loan is paid in full.
City of Dunn —2026 Grapple Truck and Tractor March 10, 2026
Letter of Conditions
Page I11
7. Security Inspections—RD is required to conduct an inspection of the facility a minimum of
once every three years.The recipient must participate in these inspections and provide the
required information. Compliance reviews will typically be conducted in conjunction with
the security inspections described in this letter. If beneficiaries (users) are required to
complete an application or screening for the review to collect data by race(American Indian
or Alaska Native, Asian, Black or African) the Agency will utilize this data as part of the
required compliance review.
8. Graduation—You may be required to refinance(graduate)the unpaid balance of the RD loan,
in whole or in part, if at any time RD determines your entity is able to obtain a loan for such
purposes from responsible cooperative or private sources at reasonable rates and terms for
loans for similar purposes and periods of time, the recipient will be requested to refinance.
The ability to refinance will be assessed every other year for those loans that are five years
old or older.
9. Prepayment and Extra Payments- Prepayments of scheduled installments, or any portion
thereof, may be made at any time at the option of borrower,with no penalty.
Security instruments, including bonding documents, must contain the following language
regarding extra payments, unless prohibited by State statute:
Prepayments of scheduled installments, or any portion thereof, maybe made at any time at
the option of borrower. Refunds, extra payments and loan proceeds obtained from outside
sources for the purpose of paying down the Agency debt, shall, after payment of interest, be
applied to the installments last to become due under this note and shall not affect the
obligation of borrower to pay the remaining installments as scheduled in your security
instruments.
10. Financial Covenants
a) Beginning in the First Full Year of 202x and tested annually,a debt service coverage ratio
(DSCR)of a least 1.25 will be maintained with debt service to include the loan payments
plus all required reserves. If the DSCR drops below 1.25 for any audited year, then an
independent management consultant shall be engaged at the expense of the Applicant
to prepare a fiscal strategy report that documents how the debt service requirement will
be met.This report must be provided to the Agency no later than 90 days after receipt of
the annual audit. *Debt service coverage is defined as net income plus depreciation and
amortization expense plus interest expense on structured debt divided by the sum of all
structured debt payments including required reserve payments still due.
CITY OF
1887
NORTH CAROLINA
Met&ce Xegiits/
Work Session, March 10, 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 on the following items:
a. Upcoming Agenda Items
Special Use Application
ii. Retirement of K-9 Officer
b. Updates
Cotton Gin
ii. Downtown Trees/Sidewalks
iii. Paving
Page 1 of 1
CITY OF
JUNN
NORTH CAROLINA
Gtl/et&ce-ststait4,6egu�!
Announcements :
• The next Regular Session of the Dunn City Council is
scheduled for Tuesday, March 24th at 6:30 p.m.
• The next Work Session of the Dunn City Council is
scheduled for Tuesday, April 10th at 6:30 p.m.
• The following boards have terms ending in June,
2026:
Alcohol Beverage Control Board
'Community Appearance Board
'Dunn Housing Authority Board
cParks & Recreation Board
'Planning Board
Applications are available at City Hall or on-line at
https://www.cityofdunn.org/boards-committees.asp