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HomeMy WebLinkAboutAgenda 05-26-26 RegularCITY OF DUNN NORTH CAROLINA Gdkuoesftftm_4 6Vuu/ CITY COUNCIL REGULAR MEETING 6:30pm, Tuesday, May 26, 2026 Dunn Municipal Building 401 East Broad Street Dunn, North Carolina 28334 -AGENDA- CERTIFICATION OF QUORUM & CALL TO ORDER —William R Elmore, Jr., Mayor INVOCATION— Reverend Tyler Ward, Senior Pastor— First Baptist Church PLEDGE OF ALLEGIANCE — Alan Hargis, Council Member CONSIDERATION & APPROVAL OF THE AGENDA PUBLIC COMMENT PERIOD The purpose of the public comment period is to allow an opportunity for the public to address the City Council and is not intended to require the City Council to answer questions or respond to comments. Per the City Council's Public Comment Policy, adopted August 4, 2005, anyone desiring to address the Council must register on a sign-up sheet prior to the meeting being called to order. Comments are limited to three minutes per speaker, and the total public comment portion of the meeting is limited to no more than 30 minutes. 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 under the Items for Discussion & Possible Action section of the agenda. 1. Approval of May 12, 2026 Budget Work Session Minutes 2. Approval of May 12, 2026 Work Session Minutes 3. Capital Project Ordinance Amendment I — East Bay Street & South Wilson Avenue Stormwater Project 4. Capital Project Ordinance Amendment II — Machine & Welding Outfall Sewer Line Improvement Project 5. Capital Project Ordinance Amendment II — Water Treatment Plant Land Purchase Project 6. Lead & Copper Line Rules— KCI Associates Contract —Amendment 1 7. Budget Amendment for Various Accounts ITEMS FOR DISCUSSION & POSSIBLE ACTION 8. Zoning /Map Amendment (RZ-26-02) — 809 & 811 E Cumberland Street a. Public Hearing b. Decision Page 1 of 2 CITY OF DUNN ® NORTH CAROLINA were, � �� �eg&tx 9. Consideration of Data Center Moratorium a. Public Hearing b. Decision REPORTS & UPDATES 10. City Manager's Report a. Employee Picnic Recap b. Public Information and Outreach 11. Financial Report 12. Departmental Reports & Project Updates a. Code Enforcement 13. Announcements CLOSED SESSION If called, the motion to enter closed session must cite the North Carolina General Statute that authorizes the closed session. ADJOURNMENT The City of Dunn is an equal opportunity provider and employer. Page 2 of 2 CITY OF � DUNN NORTH CAROLINA 4WAe400'e beg4qSl Regular Meeting, May 26, 2026 Agenda Item(s): Approval of May 12, 2026 Budget Work Session Minutes Presenter(s): Melissa Matti, City Clerk Responsible Staff: Melissa Matti, City Clerk Action Item: Yes Attachment(s): 1) May 12, 2026 Budget Work Session Minutes Background None Budget Impact None Staff Recommendation(s) Approval of Minutes as presented. Suggested Motion(s) Motion to approve May 12, 2026 Budget Work Session Minutes as presented. Page 1 of 1 Dunn City Council Budget Work Session Tuesday, May 12, 2 02 6, 4:00 p.m., Dunn Municipal Building Minutes PRESENT: Mayor William P. Elmore Jr., Mayor Pro Tem April Gaulden, Council Members Raquel McNeil, Alan Hargis, and Billy N. Tart. ABSENT: Council Members J. Wesley Sills and Dr. David L. Bradham PRESENTATION FY27 Budget Prese L,UUQ1UL1VG UU11LUAL - JLLI(.t: nyuVLI►UULIVII InUI LILu► ►will City Manager Justin Hembree opened by providing critical context for the Revised Budget Presentation. He informed the, Council that a Bill had passed the North Carolina State Senate the prior week that would place a pause on property reevaluation in approximately fifteen (15) counties, including Harnett County. If enacted, the Bill would invalidate the new schedule of values adopted by the Harnett County Board of Commissioners in January and revert property tax assessments to the prior year's values. City Manager Hembree stated that while the Bill had not yet passed the House, he anticipated that it would, citing widespread bipartisan support in the Senate and a parallel House Bill concerning a Property Tax Constitutional Amendment. The practical effect of the moratorium, City Manager Hembree explained, was the elimination of approximately $1,800,000 in anticipated additional tax revenue that had been presented to Council at a prior budget workshop. He described this as a return to the drawing board, noting that staff had been working to close a remaining budget gap now estimated at approximately $600,000. Major Cost Drivers City Manager Hembree outlined two (2) significant areas of increased expenditure driving the budget shortfall: • Employee benefit costs: Mandatory increased contributions to the Local Government Employees Retirement System (LGERS), a projected 10% increase in State Health Insurance Plan premiums, and a required additional contribution of 2.4% of retirement system amounts to address the health plan's deficit. Collectively, these benefit -related increases total approximately $300,000 in the General Fund. • Utility costs: Rising costs across all City departments due to increasing Water and Sewer rates (including the City paying its own rate increases), Duke Energy rate increases, and expanded infrastructure such as additional streetlights in new subdivisions. FY27 Recommended Budget — Version Z General Fund Finance Director Cary McNallan presented the Revised Recommended Budget, characterizing it as "Recommended Budget No. 2," reflecting a series of reductions from the previously distributed version. The total proposed General Fund Budget stands at $14,900,000. Key expenditure reductions from the prior version included: • Reduced COLA and merit increases (still included, but at a lower amount) • Reductions in travel, training, and business meal allowances • Reduction in the Harnett Economic Development Corporation contribution • Elimination of the Stewart Theatre contribution • Reduction in laptop requests • Elimination of the Codrington Park local match contribution • Deferral of a community building HVAC, replacement in Parks & Recreation • Reduction in athletic program materials • Reductions in the Planning Department's demolition and community appearance budget • Reduction in Police Department equipment requests (e.g., rifles reduced from 45 to 15) • Elimination of one new Public Works employee position request • Reduction in Public Works equipment Irequests. A copy of the FY27 Recommended Budget — Version 2 (General Fund)presentation is incorporated into these minutes as Attachment #1. City Manager Hembree clarified that the elimination of the Codrington Park Budget contribution did not halt the project: The grant application process through McAdams would continue, as a multi -year ramp -up period applies and a Federal matching grant opportunity remains available`. Finance Director McNallan also presented a list of FY27 unfunded requests that had not made either version of the recommended budget. These items were acknowledged as legitimate City needs but without available funding, and would likely be deferred to FY28 or FY29. A separate slide addressed vehicle and machinery requests totaling approximately $171,000 in annual debt service if fully funded. Finance Director McNallan noted these items would have no cost impact in FY27 itself, as debt service payments would not begin until FY28. The Council was asked to determine whether to proceed with any of these purchases. Discussion centered on Police fleet replacement, with Council members noting the transition away from Dodge Chargers toward Ford Durangos and the ongoing need to cycle through a fleet of approximately 40-50 police vehicles. Tax Rate Increase To balance the proposed $14,900,000 budget, Finance Director McNallan presented a recommended tax rate increase of 6 cents, bringing the operational rate from $0.50 to $0.56 per $100 of assessed value, and the total tax rate (including the existing $0.04 dedicated to the paving fund) from $0.54 to $0.60. Using the prior year's assessed values, each penny of tax rate generates approximately $115,000 in revenue, meaning the 6-cent increase would generate approximately $690,000. Finance Director McNallan illustrated the taxpayer impact: a home valued at $250,000 (using prior -year values) currently pays $1,350 in City taxes annually; the proposed increase would add $150 per year, or approximately $12.50 per month. A $500,000 home would see an increase of $300 per year, or $25 per month. Finance Director McNallan noted that the current General Fund balance stands at approximately 27.3% following the FY25 audit, and that failing to raise the needed revenue would reduce Fund Balance by approximately $690,000, likely pushing it below the 25% threshold required by the Local Government Commission. Council Discussion Council members engaged in substantive discussion on strategies to reduce the tax rate increase or offset the budget gap. Council Member Tart raised the possibility of selling City - owned vacant lots and properties, arguing that such sales could generate meaningful one- time revenue, reduce maintenance costs, and produce long-term Tax Revenue once properties are developed. City Manager Hembree and Finance Director McNallan expressed support for the idea. Finance Director McNalIan suggested that $100,000 in property sale proceeds could be conservatively budgeted, which would reduce the needed tax levy increase from 6 cents to approximately 5.5 cents. City Manager Hembree noted that an inventory of City -owned properties had been compiled and offered to share it with the Council for review. Council members also asked about the Tax Revenue impact of new residential growth. Finance Director McNallan confirmed that approximately two hundred (200) new homes had been added, and that he had included an estimated $200,000 in additional tax levy to account for that growth, though the County was unable to provide precise figures due to the reval transition. Council Member Tart estimated that 50-75 new homes could contribute $60,0004100,000 in additional annual tax revenue. Mayor Pro Tem Gaulden and other Council members sought clarification on where the approximately $700,000 increase over the prior year's budget was being directed. Finance Director McNallan summarized the major components as: approximately $365,000 in mandatory State -related benefit cost increases, approximately $240,000 in COLA and merit adjustments, and the remainder attributed to rising utility costs. Council Member Tart raised a question about the Tourism department appearing as a Budget Expenditure, noting it inflated the apparent total. Finance Director McNallan clarified that Tourism costs are fully offset by a corresponding reimbursement shown on the revenue side, resulting in a net cost of zero to the General Fund. City Manager Hembree addressed the broader budget philosophy, acknowledging that further expenditure reductions beyond what has already been cut would require examining service provision levels, as the majority of the City's budget consists of personnel costs. He cautioned that reducing services further would create a snowball effect on remaining staff. He also noted that staff was working to review the City's Fee Schedule across all departments by Friday of that week, with the goal of ensuring user fees more accurately reflect the cost of services provided. Finance Director McNallan reminded the Council that the statutory deadline to present a formal recommended budget to Council is May 31, 2026. Water and Sewer Rates City Manager Hembree briefly addressed the Water and Sewer Enterprise funds, noting that a rate increase is being recommended. He emphasized that if implemented, the proposed rates would bring the City to full cost recovery — a significant milestone following several years of Major Capital Investment, the resolution of a Special Order of Consent, and the lifting of a Development Moratorium. He credited the Council for the steps taken over the preceding four (4) to five (5) years. He noted that once full cost recovery is achieved, future rate adjustments would be expected to track closely with inflation rather than requiring large catch-up increases, unless significant new capital debt is undertaken. A Council member expressed concern that multiple simultaneous cost increases — property taxes, water and sewer rates, and solid waste fees including the Yard Waste Cart charge — would burden residents. The Council member noted receiving a high volume of constituent calls about the Yard Waste Cart fee specifically, and expressed frustration that a small number of abusers of the service were effectively penalizing compliant residents. Next Steps City Manager Hembree proposed scheduling another round of individual or two -by -two meetings with Council members the following week to review the budget in greater detail before the end -of -month deadline. Finance Director McNallan agreed to prepare and distribute by Thursday a Revised Budget Document showing a detailed comparison of FY26 adopted figures against the proposed FY27 figures at the line -item level, as requested by Council members. Council members agreed this format would be more useful for identifying specific areas of change and preparing to answer constituent questions. ADJOURNMENT With no further business, Mayor Elmore called for a motion to adjourn the Budget Work Session, with the regular work session set to reconvene at 6:30 PM. A motion to adjourn was made by Council Member Alan Hargis and seconded by Mayor Pro Tem April Gaulden to adjourn the Budget Work Session. The motion carried unanimously. The meeting was adjourned at 5:05 p.m. William P. Elmore, Jr. Mayor Attest: Melissa R. Matti City Clerk CITY OF M DUNN NORTH CAROLINA WA61;?,coA"nW4 Regular Meeting, May 26, 2026 Agenda Item(s): Approval of May 12, 2026 Work Session Minutes Presenter(s): Melissa Matti, City Clerk Responsible Staff: Melissa Matti, City Clerk Action Item: Yes Attachment(s): 1) May 12, 2026 Work Session Minutes Background None Budget Impact None Staff Recommendation(s) Approval of Minutes as presented. Suggested Motions) Motion to approve May 12, 2026 Work Session Minutes as presented. Page 1 of 1 Dunn City Council Work Session Tuesday, May 12, 2026 6:30 p.m., Dunn Municipal Building Minutes PRESENT: Mayor William P. Elmore Jr., Mayor Pro Tern April Gaulden, Council Members Raquel McNeil, Alan Hargis, and Billy N. Tart. ABSENT: Council Members J. Wesley Sills and Dr. David L. Bradham ALSO PRESENT: City Manager Justin Hembree, Assistant City Manager Billy R. Godwin, Finance Director Cary McNallan, Senior Planner Stephanie Goodrich, Police Chief Lynn Gay, Administrative Support Specialist Christy Sweeney, City Attorney Tilghman Pope and City Clerk Melissa Matti. CONSENT AGENDA • Approval of April 28, 2026 • 66th Annual Public Works Works Week Proclamation is ina lar Meeting Minutes (,.(May 17-23, 2026) Proclamation. A copy of the Public ted into these minutes as Attachment #1. (2) Council members were unable to attend due to prior . was present. Both Consent Agenda items were brought Motion by Mayor Pro Tem Gaulden and seconded by Council Member Hargis to approve the Consent Agenda as presented. The motion carried. ITEMS FOR DISCUSSION & CALENDARING FOR MAY 26, 2026 Designated Truck Routes A No Through Trucks - Phase Z Lieutenant Apelles Hart presented Phase 2 of the City's truck route review, building on the prior Work Session discussion. He explained that the presentation covered three (3) areas: the Proposed Designated Truck Routes, the No -Through -Truck Routes, and a Proposed City Ordinance Amendment. As a recap from Phase 1, Lieutenant Hart noted that the City currently has twenty-nine (29) outdated Designated Truck Routes, and that under the existing codification, any route that is not specifically designated a Designated Truck Route is essentially a No - Through -Truck Route. Proposed Designated Truck Route Lieutenant Hart presented a map showing a single proposed Designated Truck Route, depicted in yellow, running north -to -south and east -to -west through Dunn. This route mirrors the secondary alternate route already established by the North Carolina Department of Transportation (NCDOT) for use in emergencies such as an I-95 closure, so the City adopted it rather than creating a new designation. Red lines on the map indicated streets where No -Through -Truck signage is already posted. Council Discussion on Route Concerns Council Member Hargis raised a recurring concern about South Wilson Avenue, which is not currently on the No -Through -Truck list but has been asource of repeated complaints. He described a pattern of trucks turning onto Wilson Avenue to bypass the congested US- 301 intersection, traveling down to Pearsall Street, and in the process repeatedly damaging cable lines along the route. He noted that he had previously requested no -truck access on that street. Lieutenant Hart explained that the purpose of the ordinance amendment is precisely to address such situations =once `the new framework is in place, officers will be able to properly enforce the law and issue citations on any street not on the designated route, absent a legitimate delivery reason. The Council asked how officers would determine whether a truck had a legitimate reason to be on a non -designated street. Lieutenant Hart explained that officers would stop trucks found on non -designated routes and ask for documentation. Truck drivers are required to carry logs indicating their origin and destination, and if no delivery or legitimate business purpose can be established for that street, a citation may be issued. He noted that enforcement activity, once begun, tends to produce results quickly, as word spreads among drivers. Ordinance Amendment City Manager Hembree summarized the overall intent of the amendment: to correct a historical misunderstanding in which streets were codified as designated truck routes when the intent was to identify delivery areas —effectively making almost every City street a designated truck route. The proposed amendment, drafted by staff, would establish a single designated truck route, after which all other streets would be inherently no -through -truck routes subject to enforcement. The amendment also updates the definition of "commercial vehicle" to align with NCDOT's standards, avoiding the need to separately update the City's own definitions going forward. Lieutenant Hart confirmed he would follow up with NCDOT regarding the potential addition of Jonesboro Road to the truck route. No formal action was taken; the item is calendared for the May 26, 2026 regular meeting. Rezonina�p Amendment CRZ-26-021 809 & 811 E Cumberland Street Planner Goodrich presented a preview of a rezoning request for the properties at 809 and 811 East Cumberland Street, proposing a map amendment from Office and Institutional (0&1) to General Commercial (C-3), consistent with the surrounding commercial corridor. The Planning Board has reviewed the request and forwarded it with a unanimous recommendation of approval. The two (2) lots have been recombined into a single parcel, and site plans are currently undergoing; Technical Review Committee review. City Manager Hembree clarified that no action was requested at this meeting; the item is scheduled for a formal Public Hearing and full presentation at the May 26, 2026 Regular meeting. Mayor Elmore expressed his primary concern regarding traffic, specifically the need for a turn lane in front of the subject property, drawing a comparison to the backup issues experienced at the Starbucks location across US-421.' Ms. Goodrich confirmed that NCDOT has been invited to comment as part of the site planreview process, though a response has not yet been received. Data Center Discussion City Manager Hembree presented a staff overview of data centers, their characteristics, and the emerging regulatory landscape, noting that research for the presentation was largely conducted by staff member Alex Abling. Overview and Context A data center, as defined for purposes of this discussion, refers to the physical building that houses and stores data —not the data itself. Data centers range from small server rooms to large hyperscale facilities exceeding 10,000 square feet, consuming megawatts of electricity and significant volumes of water. Examples of large-scale facilities already operating in forth Carolina' include Google's data center in Lenoir, an Apple facility in Catawba County, and a Facebook facility in Bradford County. Benefits and Con Staff presented both sides of the issue. Potential benefits include property tax revenue (particularly from the building and equipment), construction -phase employment, possible community infrastructure contributions, and the potential to attract ancillary tech industry activity. Concerns noted included significant environmental impact (diesel generator exhaust, PFAS), very high water consumption for cooling systems, high energy demand and grid strain, a notably low number of permanent jobs relative to building size, and localized noise and light pollution. Staff cited a Federal study acknowledging that the true long-term impact of data centers remains under -researched due to the novelty and pace of the land use type. Legislative and Re u�q latory Landscape At the Federal level, the Clean Cloud Act (HR 6179) has been introduced to place energy accountability standards on data centers. At the State level, Bills under consideration include one that would remove tax incentives for data centers and the Ratepayer Resource Protection Act, which addresses who bears the cost of grid expansion needed to serve these facilities. Both State Bills are in committee. Locally, City Manager Hembree noted that North Carolina General Statute 160D allows municipalities and counties to adopt temporary development moratoriums for the purpose of studying a land use and developing appropriate regulations. Five counties in central North Carolina have already adopted moratoriums, including Harnett County, which acted the week prior. Several municipalities including Apex, Wendell, and Durham have also adopted moratoriums, and Cumberland County is actively discussing one. Current Status in Dunn Based on staff analysis, approximately twenty (20) parcels within Dunn's planning jurisdiction could currently meet conditions fora data center, under the existing ordinance, primarily within the I-100 (Heavy Industrial) zoning district, assuming a minimum of ten (10) acres and a 500-foot buffer from residential areas. City Manager Hembree stressed that because data centers are not explicitly listed in Dunn's Unified Development Ordinance, staff is currently relying on interpretation of other uses —and that if a qualifying applicant walked into the Planning]) epartment tomorrow, there may be limited grounds to deny a zoning permit. Any approval would also require a public utilities review to ensure adequate water supply capacity. City Attorney Tilghman Pope confirmed that Harnett County's moratorium does not apply within the City of Dunn's jurisdiction. Council Discussion and Direction Mayor Elmore expressed support for a 6-month moratorium, citing concern that allowing a data center to consume industrial land and City Water resources for a use that generates very few permanent jobs would undermine the'City's Economic Development priorities. Council Member Hargis agreed and asked about counties that have chosen to permit data centers. City Manager Hembree indicated those decisions were likely driven by the significant addition to the tax base, particularly in more rural counties, and noted that at least one recent attempt to locate a data center near Tarboro was denied and has since resulted in litigation. City Attorney Pope noted that a moratorium under 160D would require a Public Hearing before formal adoption, and that it would buy staff the time needed to properly address a land use that is not currently defined in the City's ordinance. He confirmed that the Council could lift the moratorium at any time. The consensus of the Council was to direct staff to prepare a Moratorium Ordinance for consideration, with a Public Hearing to be calendared for the May 26, 2026 Regular meeting if the timeline permits. A copy of the Data Center Presentation is incorporated into these minutes as Attachment #2. Dunn Representative for Harnett County Library Board of Trustee City Manager Hembree introduced Dunn Branch Library Manager Leslie Schultz, who was present to provide an annual update on library operations. He noted that the anticipated appointment recommendation for a seat on the Harnett County Library Board of Trustees was withdrawn because the prospective appointee was no longer available, and that portion of the agenda item was deferred. Ms. Schultz, who has served as Dunn Branch Manager since April 21, 2025, provided the following statistical highlights for the past year: • Circulations: 47,977 items circulated, including books, magazines, audiobooks, DVDs, and various specialty kits. • Patron Visits: 43,396 visits to the branch. • Programs: 261 programs held across all age groups, with 4,094 total program attendees. Programming included adult and youth cooking classes, book clubs, fitness classes, computer literacy classes, and story times. • Resources: The branch offers access to Libby (digital books and audiobooks), NC LIVE databases, Northstar Digital Literacy, Ancestry.com, and the Thousand Books Before Kindergarten program. Ms. Schultz thanked the Council and City staff for improvements made to the library facility over the past year, including bathroom upgrades,,a new HVAC unit, a ramp for the book drop, parking lot restriping, grounds maintenance,, and pest control. Upcoming branch events include a screening of the Paul Green documentary Playmaker on May 29, a Summer Reading Program kickoff on June 1 and a book sale at the main Lillington branch on June 5-6. REPORTS & UPDATES City Manager's Report'' agg Upcominga Agenda Items City Manager Hembree noted that the May 26, 2026 Regular Meeting agenda is relatively light, as a Special Use Permit previously expected for that meeting has been delayed to June. The primary substantive item anticipated is a budget discussion, as the Council works toward finalizing and publishing the formal recommended budget. He indicated he would be reaching out to Council members to schedule additional two (2) -by-two (2) Budget Meetings, Mayor Elmore noted that a Special Workshop Meeting could be called if needed. Assistant City Manager Godwin provided an update on the construction of the half - million -gallon elevated water storage tank on Highway 301 South, which will be the City's fourth water storage tank. Construction is divided into five (5) phases: preconstruction, fabrication, tank construction, painting, and punch list. The preconstruction phase, including foundation work, was completed in March 2026. The fabrication phase —during which tank components are manufactured off -site —is scheduled for June and July. A gap of several months then exists on the contractor's schedule before the on -site tank construction phase begins in October, with completion expected in mid -January 2027. Painting and punch list work would follow, with full project completion anticipated in early spring 2027. Assistant City Manager Godwin noted that the tank was originally scheduled for completion in fall 2026. Staff has engaged the project's managing engineering firm to seek an explanation from the tank contractor, Phoenix, for the delays and the gaps in the schedule. Council Member Hargis asked whether a penalty provision existed for delays. Mr. Godwin confirmed there is a liquidated damages clause of $2,000 per day of delay, and that staff is actively raising that provision with the contractor's team to determine whether it may apply. West Broad Street Paving City Manager Hembree addressed questions the Council has been fielding from residents regarding the status of West Broad Street paving. He explained that the paving project is currently on a planned two -week pause and then work will resume. However, the West Broad Street segment requires a more complex approach than a standard resurfacing due to the need for curb and gutter work and issues related to truck loading areas in front of businesses such as Sherwin-Williams. As a first step, the City has engaged East Coast Land Surveying to conduct a Survey and Topographic Assessment of the corridor. City Manager Hembree explained that over years of paving activity, the road surface has likely crept outside the original right-of-way, and a precise survey is needed to determine the correct road alignment and right-of-way boundaries before any reconstruction work is designed. The Topo Survey will also help address existing stormwater drainage concerns in the area. Once survey data is available, staff plans to consult with the contractor,.. Holland, on the best approach for reconstructing the segment. Family Day Picnic City Manager Hembree reminded Council members and staff of the City's Annual Family Day Picnic scheduled for Friday, beginning at 4:30 PM. Activities include cornhole, an egg race, and a home run derby at one of the City's baseball field5��,. The meeting was adjourned at 7:35 p.m. William P. Elmore, Jr. Mayor Attest: Melissa R. Matti City Clerk CITY OF DUNN 14; 87 CAROLINA NAeve, w~m4 i i Regular Meeting, May 26, 2026 Agenda Item(s): Capital Project Ordinance Amendment I East Bay Street & South Wilson Avenue Stormwater Project Presenter(s): Cary McNallan, Finance Director Responsible Staff: Cary McNallan, Finance Director Action Item: Yes Attachment(s): 1) Capital Project Ordinance Amendment Background The East Bay Street & South Wilson Avenue Stormwater Improvement Project was approved by the City Council in May 2024. The project included the purchase of land for future stormwater improvements. The project budget was $118,800 and included fundingfrom the General Fund Reserves of $118,800. The project's land purchase has now been completed, and the final cost of the project was $118,800.00 leaving a balance of $800.00 to be returned to the General Fund. In order to properly account for the funding and expenditures related to this project, an amendment to the previously adopted Capital Project Ordinance is required. Staff Recommendation(s) Staff recommend that the City Council approve a Capital Project Ordinance Amendment that will close out this project. Budget Impact The project balance of $800.00 will be returned to the General Fund Reserves. Suggested Motion(s) Motion to approve the attached Capital Project Ordinance Budget Amendment for the East Bay Street & South Wilson Avenue Stormwater Improvement Project. Page 1 of 1 1887 Capital Project Ordinance Amendment 1 East Bay Street & South Wilson Avenue Stormwater Improvements WHEREAS, the City Council for the City of Dunn, on June 24, 2025, adopted the Annual Budget Ordinance number 02025-15 for the fiscal year beginning July 1, 2025; and, WHEREAS, the City Council, on June 24, 2025, adopted the capital improvements plan for fiscal year 2025-26 that included the above -mentioned project; and, WHEREAS, the City Council, intends to construct stormwater improvements at the location of East Bay Street and South Wilson Avenue; and, WHEREAS, on May 28, 2024, the City Council approved the budget for the above -mentioned Capital Project; and, WHEREAS, it is necessary to amend this Capital Project to adjust the revenues and expenditures to close out the project; and, NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUNN, NC, PURSUANT TO SECTION 13.2 OF CHAPTER 159 OF THE GENERAL STATUTES OF NORTH CAROLINA, THAT: Section 1: Expenditures necessary for the purchase of land for the East Bay Street & South Wilson Avenue Stormwater Improvements Project is authorized to be undertaken until all project activity is completed, and is adopted as follows: Section 2. The amount of funding appropriated, and amounts budgeted for land acquisition and related costs are approved as follows: Funding Appropriations General Fund Operating Transfer Total Funding Expenditures: Administration Previous Budget Revised Budget Amendments Budget $ 118,800 $ 118,800 $ 118,800 $ - $ 118,800 Land Acquisition $ Operating Transfer to General Fund $ 800 $ (800) $ - 118,000 $ 118,000 - $ 800 $ 800 Total Expenditures $ 118,800 $ - $ 118,800 Section 3: The Finance Director is directed to report periodically on the financial status of each project element in Section 2 and on the total revenues received or claimed. 'Mere communi� 4ns! Section 4: Within five (5) days after this ordinance is adopted, the City Clerk shall file a copy of this ordinance with the Finance Director. Section 5: This Capital Project Ordinance shall be effective immediately. Duly adopted this 26th day of May 2026. Attest: Melissa R. Matti City Clerk William P. Elmore, Jr. Mayor Wtiere communify 6!�ins! Regular Meeting, May 26, 2026 Agenda Item(s): Capital Project Ordinance Amendment II Machine & Welding Outfall Sewer Line Improvement Project Presenter(s): Cary McNallan, Finance Director Responsible Staff: Cary McNallan, Finance Director Action Item: Yes Attachment(s): 1) Capital Project Ordinance Amendment Background The Machine & Welding Outfall Sewer Line Improvement Project was approved by the City Council in May 2024. The project included the construction of an outfall sewer line. The project construction budget was $6,663,619 and included funding from the General Fund Reserves of $419,719. The project has now been completed, and the final cost of the project was $6,637,931.88 leaving a balance of $25,687.12 to be returned to the General Fund. In order to properly account for the funding and expenditures related to this project, an amendment to the previously adopted Capital Project Ordinance is required. Staff also recommends that the remaining balance from this project be appropriated to the General Fund to provide funding for the contract to demolish the Cotton Gin building. Staff Recommendation(s) Staff recommend that the City Council approve a Capital Project Ordinance Amendment that will close out this project. Budget Impact The project balance of $25,687.12 will be returned to the General Fund and appropriated to the Non -Departmental operating budget. Suggested Motion(s) Motion to approve the attached Capital Project Ordinance Budget Amendment for the Machine & Welding Outfall Sewer Line Improvement Project and appropriate the project balance to the General Fund to fund the demolition of the Cotton Gin building. Page 1 of 1 Capital Project Ordinance Amendment II Machine and Welding Outfall Sewer Line Improvements Project WHEREAS, the City Council for the City of Dunn, on June 14, 2022, adopted the Annual Budget Ordinance number 02022-08 for the fiscal year beginning July 1, 2022; and, WHEREAS, the City Council, on March 8, 2022, approved a Capital Project Ordinance for the Eastside Pump Station, Force main, and Outfall line Improvements; and, WHEREAS, on March 8, 2022, a budget of $15,850,000 was approved for this project; and, WHEREAS, on January 10, 2023, a Budget Amendment was approved that reduced the overall project budget by $8,856,100; and, WHEREAS, on April 11, 2023, a Budget Amendment was approved to reflect a transfer of $2,347,102 of funding from the General Fund; and, WHEREAS, on May 28, 2024, an amendment to the original Capital Project Ordinance was approved to eliminate the Outfall Line portion of the project, so that it could be accounted for and constructed as its own separate Capital Project, and changes to the Revenue and Expenditure Budgets were adjusted accordingly; and, WHEREAS, on May 28, 2024, the Machine and Welding Outfall Sewer Line Improvements Capital Project ordinance was established and approved; and, WHEREAS, on December 10, 2024, this Capital Project was amended to reflect Program Income funding and a shift of General Fund monies to another project; and, WHEREAS, it is necessary to amend this Capital Project to adjust the Revenues and Expenditures to close out the project; and, NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUNN, NC, PURSUANT TO SECTION 13.2 OF CHAPTER 159 OF THE GENERAL STATUTES OF NORTH CAROLINA, THAT: Section 1: Construction for the Machine and Welding Outfall Sewer Line Improvements capital sewer project is authorized to be undertaken until all project activity is completed, and is adopted as follows: Section 2. The amount of funding appropriated, and amounts budgeted for construction and related costs are amended and approved as follows: 'Mere communi� kTins/ Funding Appropriations SRFR-ARPA Grant Funds ARPA Program Income Operating Trf fr General Fund Total Funding Expenditures: Administration Engineering Easements Construction Contingency Operating Trf to General Fund Operating Trf to Capital Projects Total Expenditures Previous Budget Revised Budget Amendments Budget $ 6,243,900 $ 6,243,900 $ 750,000 $ (750,000) $ - $ 2,347,102 $ 2,347,102 $ 9,341,002 $ (750,000) $ 8,591,002 $ 10,522 $ 247 $ 10,769 $ 557,500 $ 344 $ 557,844 $ 57,751 $ (1) $ 57,750 $ 6,464,615 $ (453,046) $ 6,011,569 $ 323,231 $ (323,231) $ - $ - $ 25,687 $ 25,687 $ 1,927,383 $ 1,927,383 $ 9,341,002 $ (750,000) $ 8,591,002 Section 3: Funds may be advanced from the General Fund for the purpose of making payments as due. Reimbursement requests should be made to the grantor agency in an orderly and timely manner. Section 4: The Finance Director is directed to report periodically on the financial status of each project element in Section 2 and on the total revenues received or claimed. Section 5: Within five (5) days after this ordinance is adopted, the City Clerk shall file a copy of this ordinance with the Finance Director. Section 6: This capital project ordinance shall be effective immediately. Duly adopted this 26th day of May 2026. Attest: Melissa R. Matti City Clerk William P. Elmore, Jr. Mayor Wkere cammuni� 6!Ms! CITY OF DUNN NORTH CAROLINA Wlzert,co~e&-s4xef""sl Regular Meeting, May 26, 2026 Agenda Item(s): Capital Project Ordinance Amendment II Water Treatment Plant Land Purchase Project Presenter(s): Cary McNallan, Finance Director Responsible Staff: Cary McNallan, Finance Director Action Item: Yes Attachment(s): 1) Capital Project Ordinance Amendment Background The Water Treatment Plant Land Project was approved by the City Council in June 2025. The project included the acquisition of land for future expansion of the City's Water Treatment Plant. The project budget was $5,325,000 and included funding from the water fund reserves of $325,000 and installment financing of $5,000,000. The project's land purchase has now been completed, and the final cost of the project was $5,194,791.41. The total installment financing received for this project was $3,350,000.00. These funds, along with the $325,000.00 of Water Fund Reserves that were previously transferred to the project, leave a deficit balance in the project of $1,519,791.41. This balance will be funded with an add itionaltransferfrom the Water Fund Reserves. In order to properly account for the funding and expenditures related to this project, an amendment to the previously adopted Capital Project Ordinance is required. Staff Recommendation(s) Staff recommend that the City Council approve a Capital Project Ordinance Amendment that will close out this project. Budget Impact The project balance of $1,519,791.41 will be funded from the Water Fund Reserves. Suggested Motion(s) Motion to approve the attached Capital Project Ordinance Budget Amendment for the Water Treatment Plant Land Purchase Project. Page 1 of 1 i i j 1887 Capital Project Ordinance Amendment 1 Water Treatment Plant Land Purchase Project WHEREAS, the City Council for the City of Dunn, on June 25, 2024, adopted the annual budget ordinance number 02024-13 for the fiscal year beginning July 1, 2024; and, WHEREAS, the City Council, on June 25, 2024, adopted the Capital Improvements Plan for Fiscal Year 2024-25; and, WHEREAS, the City of Dunn plans to expand its Water Treatment Plant (WTP); and, WHEREAS, it is necessary to purchase additional land to accommodate the WTP expansion and water storage facilities; and, WHEREAS, on June 10, 2025, the City Council approved the above -mentioned Capital Project Budget of $5,325,000; and, WHEREAS, the project is now completed and it is necessary to amend this Capital Project to adjust the Revenues and Expenditures to close out the project; and, NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUNN, NC, PURSUANT TO SECTION 13.2 OF CHAPTER 159 OF THE GENERAL STATUTES OF NORTH CAROLINA, THAT: Section 1: The Project authorized is the Water Treatment Plant Land Purchase Project with expenditures and funding as noted in Section 2 and is authorized to be undertaken until all project activity is completed. Section 2: The officers of this unit are hereby directed to proceed with the project within the terms of this Capital Project Ordinance and the Budget contained herein. The amount of funding appropriated, and amounts budgeted for construction and related costs, are approved as follows: V&re communi� 6Tins! Funding Appropriations Installment Financing Operating Trf fr Water Fund Total Funding Expenditures: Administration Contract Services Land Purchase Total Expenditures Previous Budget Revised Budget Amendments Budget $ 5,000,000 $ (1,650,000) $ 3,350,000 $ 325,000 $ 1,519,792 $ 1,844,792 $ 5,325,000 $ (130)208) $ 5,194,792 $ 6,000 $ 6,463 $ 12,463 $ 319,000 $ (136,671) $ 182,329 $ 5,000,000 $ 5,000,000 $ 5,325,000 $ (130,208) $ 5,194,792 Section 3: Funds may be advanced from the Water Fund or General Fund for the purpose of making payments as due. Section 4: The finance officer is directed to report, on a quarterly basis, on the financial status of each project element in section 2 and on the total revenues received or claimed. Section 5: The Budget Officer is directed to include a detailed analysis of past and future costs and revenues on this Capital Project in every Capital Budget submission made to this City Council. Section 6: Within five (5) days after this Ordinance is adopted, the City Clerk shall file a copy of this Ordinance with the Finance Director. Section 7: This Capital Project Ordinance shall be effective immediately. Duly adopted this 26th day of May 2026. Attest: Melissa R. Matti City Clerk William P. Elmore, Jr. Mayor Vhere communi� tiTins! Regular Meeting, May 26, 2026 Agenda Item(s): Lead and Copper Line Rules - KCI Associates Contract Amendment 1 Presenter(s): Ian Stroud, Water Treatment Plant Manager Responsible Staff: Ian Stroud, Water Treatment Plant Manager Action Item: Yes Attachment(s): 1) Amendment 1 - Professional Service Agreement Background On April 9, 2024, the City Council approved the City Managerto enter a contractwith KCI and Associates of North Carolina to conduct an assessment and inventory of the service lines throughout the City of Dunn. This is required by the Environment Protection Agency's (EPA) Lead and Copper Rule Revisions. Since then, the City has submitted its Initial Service Line Inventory on October 1,2024. Now the City must meet the deadline of November 1,2027 to submit a completed Service Line Inventory. An amendment to this contract will allow us to complete the inventory by the required deadline. Staff Recommendation(s) Staff are recommending that the City Council approve the City Manager to enter into the contract with the Amendment 1 Professional Service Agreement with KCI Associates of North Carolina. Budget Impact The City has received and accepted a State Water Infrastructure Authority (SWIA) grant in the amount of $500,000 that will be used to fund this contract. The grant funds and related expenditures have been appropriated in Capital Project #84 (Lead and Copper Service Assessment Project). Suggested Motion(s) Motion to approve the City Manager to enter into the contract with the Amendment 1 Professional Service Agreement with KCI Associates of North Carolina. Page 1 of 1 AMENDMENT 1 TO PROFESSIONAL SERVICES AGREEMENT KCI Project No. 412402734 THIS AMENDMENT 1 TO PROFESSIONAL SERVICES AGREEMENT ("Amendment") is entered into as of the date of last signature ("Effective Date") by and between KCI Associates of North Carolina, P.A. ("KCI") and City of Dunn ("Client"), hereinafter referred to jointly as the "Parties" or singularly as the "Party". 1. Amendments to the Agreement. The following sections of the Professional Services Agreement, effective May 22, 2024 between the Parties ("Agreement") are hereby amended by mutual agreement of the Parties as of the Effective Date: a. Section A (Scope of Services) of the Agreement is amended by addingthe following Additional Services: See Exhibit A (Pages 1&2 of 4) b. Section C (Fees and Payments) of the Agreement is amended to include the following fee for the Additional Services added by this Amendment: See Exhibit B (Pages 3&4 of 4) 2. Definitions. Capitalized terms used and not defined in this Amendment have the respective meanings assigned to them in the Agreement. 3. Agreement Remains in Effect. Except as expressly provided in this Amendment, all of the terms and provisions of the Agreement are and shall remain in full force and effect and are hereby ratified and confirmed by the Parties. On and after the Effective Date, each reference in the Agreement to "this Agreement," "the Agreement," "hereunder," "hereof," "herein," or words of like import will mean and be a reference to the Agreement as amended by this Amendment. 4. Counterparts. This Amendment may be executed in any number of counterparts, each of which will be deemed to be an original and all of which will constitute one and the same agreement, and it will not be necessary in making proof of this Amendment to produce or account for more than one such fully executed counterpart. Electronic signatures shall be deemed an original signed writing for all purposes hereof and that either Party may produce such copies or electronic signatures, without the need to produce original, hand- written signatures, to prove the existence of this Amendment in any proceeding brought hereunder. (Remainder of page left intentionally blank.) Amendment to Professional Services Agreement IN WITNESS WHEREOF, the Parties have caused this Amendment to bed uly executed. Each Party warrants and represents that its respective signatories are duly authorized to execute this Amendment. KC I : KCI Technologies, Inc. BY: Signature Name Title Date CLIENT: CITY OF DUNN BY: Signature Name Title Date Ver. March 2025 FXI-IIRIT 4 A. PROJECT UNDERSTANDING The project involves the investigation of all community water systems (CWS) and nontransient noncommunity (NTNC) systems and to develop a complete inventory of service line connections, both system -owned and customer -owned, and to identify the potential presence of lead in each connection. To complete the Lead and Copper Rule Improvement (LCRI) service line inventory for the City of Dunn by the November 1, 2027 deadline, Subsurface Utility Engineering (SUE) methods will be employed to accurately identify and verify water service line materials. KCI, in partnership with BlueConduit, will support the City of Dunn, North Carolina, in the next phase of its Lead and Copper Rule Revision project by providing GIS and data modeling services to identify areas needing further field investigation for the Lead Service Line Inventory (LSLI). This effort requires continuous project management, data collection, subsurface utility engineering (SUE), predictive modeling implementation, quality assurance and quality control (QA/QC), and NCDEQ regulatory review. B. SCOPE OF SERVICES TASK 1: PROJECT MANAGEMENT KCI will provide continuous project management and administration, including schedule tracking, QA/QC management, and resource allocation. The project manager will maintain regular communication with the City of Dunn regarding project status and conduct milestone review meetings. KCI will also prepare and submit monthly invoices accompanied by progress reports to keep the City of Dunn team fully informed throughout the project lifecycle. Deliverables: • Monthly invoices and progress reports. • Meeting agendas and meeting minutes. TASK 2: SUBSURFACE UTILITY ENGINEERING (SUE) KCI Subsurface Utility Engineering crews will provide professional vacuum excavation services to support the City of Dunn in meeting the inventory and verification requirements of the Lead Copper Rule Revision(LCRR). Using truck - mounted air vacuum excavation equipment, KCI crews will safely and nondestructively expose buried water service lines at specified meter locations to visually confirm pipe material on both the public and private sides of the service. Excavations will be performed in a controlled manner to minimize surface disturbance while protecting existing utilities and infrastructure. At each exposure, KCI will document pipe material (via scratch and magnet tests), diameter and depth. All findings will be recorded on standardized forms and compiled within the ESRI platform managed by KCI for tracking, mapping, and reporting. Upon completion, excavations will be properly backfilled and restored. This approach provides the City with defensible, field -verified data necessary to satisfy LCRR compliance while maintaining public safety and minimizing disruption to residents and traffic. noikiornhloc- • SUE findings incorporated into Esri ArcGIS software The City of Dunn Lead and Copper Rule Revisions Compliance —Scope and Fee Amendment TASK 3: GIS SUPPORT Task 3.1: Project Planning KCI T&I will hold a project kickoff meeting with KCI team, BlueConduit team and City of Dunn stakeholders, if necessary, officially beginning the project. A project schedule with milestones will be determined. Deliverables: • Project Kickoff meeting • Project kick off meeting notes • Project schedule Task 3.2: Requirements Gathering KCI T&I will hold a requirements gathering session with KCI team, BlueConduit team and City of Dunn stakeholders, if necessary, to ensure requirements and responsibilities are understood. Access to the Esri ArcGIS Online platform will be provided to BlueConduit. Deliverables: • Requirements gathering session Requirements gathering session notes Esri ArcGIS Online Access for BlueConduit Task 3.3: Solution Deployment, Configuration and Data Migration KCI T&I will deploy the Lead Service Line Inventory (LSLI) Solution within an ArcGIS Online Project Delivery subscription, a section of Esri's ArcGIS Online that KCI manages. The existing data will be prepped and migrated into the ServiceLine hosted feature layer. Quality assurance and control will be performed on the data after migration. If the modeling determines additional field investigation for service line material is required, KCI T&I will configure the appropriate field applications for data collection. Deliverables: • Deployed LSLI Solution • Prep and Migrate existing data into ServiceLine hosted feature layer • Perform QA/QC on populated data • Configuration of field data collection applications, as necessary Task 3.4: Ongoing GIS Support KCI T&I will provide ongoing GIS support for the BlueConduit modeling efforts and any additional field data collection by the KCI SUE and Survey teams. Deliverables: • Ongoing GIS support. Task 3.5: Data/Resource Delivery to Client 1of4 The City of Dunn Lead and Copper Rule Revisions Compliance —Scope and Fee Amendment KCI T&I will package the LSLI Solution with associated data and resources for the City of Dunn to utilize in their ArcGIS Online environment. Deliverables: • Lead Service Line Solution (Data/Resources) TASK 4: IMPLEMENT BLUECONDUIT PREDICTIVE MODELING SOFTWARE KCI will contract with BlueConduit to support the City of Dunn, North Carolina by providing GIS and data modeling services to identify areas needing further field investigation for the Lead Service Line Inventory (LSLI). BlueConduit's methodology and approach is closely aligned with the guiding Principles of Data Science for Lead Service Line Inventories and Replacement Programs and is in accordance with the EPA Guidance for Developing and Maintaining a Service Line Inventory r)olivornhloc- • BlueConduit LSL Predictions PaaS C. ASSUMPTIONS, EXCLUSION, AND CAVEATS • Public Outreach, including coordination or meetings with the City of Dunn property owners as investigations progress. • KCI will purchase an Esri ArcGIS Online Project Delivery Subscription to house data and resources related to this effort. • The Esri ArcGIS Online Project Delivery Subscription will be active for one year. At the end of one year, KCI will transfer the subscription to the City of Dunn, or it will expire without renewal. • BlueConduit requires one (1) Creator License within the Esri ArcGIS Online platform. • Updated lead service line inventory due to North Carolina Department of Environmental Quality (NCDEQ) by November 1, 2027 • Any other services not explicitly listed in the Scope of Services are excluded. 2of4 The City of Dunn Lead and Copper Rule Revisions Compliance — Scope and Fee Amendment EXHIBIT B A. FEE SCHEDULE In accordance with the ADJUSTMENTS TO FEE AND TIME provision in the attached General Provisions, the following fees are for the performance of the Services listed in the Scope of Services above. The fees listed in this section do not cover any Additional Services, or any other services that are not specifically described as part of the Services. KCI will submit monthly invoices for the Services and Additional Services rendered and the Direct Expenses and Charges incurred. Client agrees to comply with the PAYMENT terms in the General Provisions. KCI's fee for the Services will be the following hourly rates listed below by personnel classification multiplied by the number of hours worked by each respective person: Classification Hourly Rate Project Manager $240/Hr. Deputy Project Manager $220/Hr. Senior Engineer $170/Hr. Project Engineer $130/Hr. Engineer -in -Training $110/Hr. Designer $120/Hr. Drafter $95/Hr. Sampling Program Task Manager $225/Hr. GIS Associate Project Manager $173/Hr. Senior Solutions Engineer $256/Hr. GIS Data Analyst $114/Hr. SUE Project Manager $200/Hr. SUE Coordinator $140/Hr. Survey Project Manager $225/Hr. Survey Assistant Task Manager $185/Hr. Senior Survey Office Technician $135/Hr. 1-Person Robotic Survey Crew $150/Hr. 2-Person Survey Crew $200/Hr. 2Man Construction Survey Crew $250/Hr. 3 of 4 The City of Dunn Lead and Copper Rule Revisions Compliance —Scope and Fee Amendment Additionally, when Client agrees that KCI shall provide excavation methods for the LCRR service line inventory, the following methods include soft surface excavation and hard surface excavation. These services will both utilize vacuum truck and will include mobilization, meter investigation and markup, public and private water line exposure, documentation in ESRI, and asphalt or concrete repair if necessary. These rates shall be utilized: SUE Vacuum Soft Surface Extraction $850 per hole SUE Vacuum Hard Surface Extraction $950 per hole Traffic Control Actual Cost KCI represents that the total fee for all the services shall not exceed $490,000. B. DIRECT EXPENSES AND CHARGES In addition to the above fees, Client shall also pay KCI the following expenses and charges: 1. Cost plus fifteen (15) percent for fees associated with the filing of applications and permits and for reproductions and prints, special mailings and courier fees as requested or required in KCI's normal performance of the Services. 2. $0.725 per mile for all automobile mileage associated with KCI's normal performance of the Services. 3. Cost plus fifteen (15) percent for any subcontract services and equipment rental, if required. The determination as to whether subcontract services are required shall be made solely by KCI. BlueConduits's Services have been deemed required for the competition of this project. 4of4 Regular Meeting, May 26, 2026 Agenda Item(s): Budget Amendment — Various Operating Accounts Presenter(s): Cary McNallan, Finance Director Responsible Staff: Cary McNallan, Finance Director Action Item: Yes Attachment(s): 1) Budget Amendment Background Various operating budget amendments are requested for the following reasons: 1. Appropriate $35,000 of insurance proceeds for police vehicle repairs. 2. Appropriate $20,000 of prior year seized asset funds to the Police Department for eligible drug enforcement expenditures. 3. Appropriate $6,586 of prior year donated funds to the Animal Control Department for improvements to the shelter. 4. Appropriate unbudgeted Senior Center program revenues of $8,000 to the Senior Center operating expense budget. 5. Shift $45,425 of salary and benefit reserves from the Non -Departmental budget to the Administration budget to cover unbudgeted retirement/pension costs related to the retirement of the previous City Manager. 6. Shift $70,000 of salary and benefit budget from the Police Department to the Sanitation Department to cover unbudgeted contract service expenditures. 7. Shift $142,500 of contingency funds in the Water Fund to the Water Distribution Department to cover increasing costs forwater meter materials, increased volume of meter demands, and unbudgeted water line repairs. 8. Shift $55,022 from an operations line item to a Capital Improvement category within the Sewer Collections Department to fund replacement of sewer lines. 9. Appropriate $50,000 of water system development fee (SDF) revenue to the Water SDF Fund expenditure account to fund water meter and material costs. Appropriate $60,000 of sewer system development fee (SDF) revenue to the Sewer SDF Fund expenditure account to fund sewer meter and material costs. Page 1 of 2 Staff Recommendation(s) Staff are recommending that these Budget Amendments be approved. Budget Impact The overall budget for the General Fund will increase by $69,586. The budgets for the Water SDF Fund and Sewer SDF Fund will increase $50,000 and $60,000, respectively. Suggested Motion (s� Motion to approve the attached Budget Amendments for the various funds. Page 2 of 2 1 2 3 3 4 5 5 5 5 6 6 7 7 7 7 7 8 8 9 9 1 2&3 4 9 9 CITY OF DUNN BUDGET ORDINANCE AMENDMENT Department: Various Budget Amendment #: 29 FISCAL YEAR ENDING: 6/30/2026 Date: 5/26/2026 FUND Acct # LINE ITEM DESCRIPTION Appropriation Before Amendment Amount of Amendment Increase / (Decrease) Appropriation After Amendment General 010-0510-7002 Insurance Repair Expense $ 18,600.00 $ 35,000.00 $ 53,600.00 General 010-0510-5910 Drug Forfeiture Expense 20,000.00 20,000.00 40,000.00 General 010-0514-1500 Maint & Repair - Buildings 9,000.00 6,086.00 15,086.00 General 010-0514-7000 Non -Capital Equipment 350.00 500.00 850.00 General 010-0622-4500 Contract Services - 8,000.00 8,000.00 General 010-0420-0700 Retirement/401 K 69,001.00 45,425.00 114,426.00 General 010-0500-0200 Salaries and Wages 35,768.00 (35,768.00) - General 010-0500-0500 FICA/Medicare 2,736.00 (2,736.00) - General 010-0500-0700 Retirement/401 K 6,921.00 (6,921.00) - General 010-0510-0200 Salaries and Wages 2,886,938.00 (70,000.00) 2,816,938.00 General 010-0561-4500 Contract Services 820,000.00 70,000.00 890,000.00 Water 029-0709-5800 Reserve for Contingency 211,086.00 (142,500.00) 68,586.00 Water 029-0809-1307 Water & Sewer 1,680.00 10,000.00 11,680.00 Water 029-0809-3400 Materials 72,088.80 100,000.00 172,088.80 Water 029-0809-3403 Materials - Meters - 7,500.00 7,500.00 Water 029-0809-7402 Capital Improvement Projects 196,565.00 25,000.00 221,565.00 Sewer 030-0810-1601 Infiltration -Collections 75,000.00 (55,022.00) 19,978.00 Sewer 030-0810-7402 Capital Improvement Projects - 55,022.00 55,022.00 Water SDF 035-0929-3403 Materials - Meters - 50,000.00 50,000.00 Sewer SDF 036-0930-3403 Materials - Meters - 60,000.00 60,000.00 EXPENDITURE TOTAL: $ 4,425,733.80 $ 179,586.00 $ 4,605,319.80 Appropriation Amount of Appropriation FUND Acct # LINE ITEM DESCRIPTION Before Amendment After Amendment Increase / (Decrease) Amendment General 010-0360-0800 Police Insurance Proceeds $ 46,100.00 $ 35,000.00 $ 81,100.00 General 010-0368-2001 Fund Balance Appropriation 821,667.85 26,586.00 848,253.85 General 010-0357-0000 Senior Ctr Program Fees 3,200.00 8,000.00 11,200.00 Water SDF 035-0399-0811 Water System Development Fee - 50,000.00 50,000.00 Sewer SDF 036-0399-0821 Sewer System Development Fee - 60,000.00 60,000.00 REVENUE TOTAL: $ 870,967.85 $ 179,586.00 $ 1,050,553.85 3ERTIFICATION: I certify this requested budget amendment was approved by the City Council on: City Manager: 5/26/2026 Finance Director: 5/26/2026 CITY OF DUNN BUDGET ORDINANCE AMENDMENT Department: Various Budget Amendment #: 29 FISCAL YEAR ENDING: 6/30/2026 Date: 5/26/2026 JUSTIFICATION: 1. Appropriate insurance proceeds for police vehicle repairs. 2. Appropriate prior year drug seizure funds to fund eligible expenses. 3. Appropriate prior year donated funds to Animal Shelter for eligible expenses. 4. Appropriate program revenues to the Senior Center budget. 5. Shift expenditure budgets from Non -Departmental to Admin to fund unbudgeted retirement pension contribution. 6. Shift police salary budget to the Sanitation Dept. 7. Allocate contingency reserves to various water distribution operating accounts. 8. Shift funds from operations to capital for a sewer line replacement. 9. Appropriate System Development Fee revenue to fund material costs. FUNDING SOURCE: Various revenues and reserves along with shifts in expenditure line item budgets. 6 CITY OF DUNN NORTH CAROLINA GtlAerecs.n" 6e#`u1 Regular Meeting, May 26, 20226 Agenda Item(s): Rezoning / Map Amendment RZ-26-02 Presenter(s): Stephanie Goodrich , Senior Planner Responsible Staff: Stephanie Goodrich, Senior Planner Action Item: No Attachment(s): 1) Location and Current Zoning Map Background RZ-26-02 is a rezoning request submitted by Delight Restaurant Group for addresses 809 & 811 E Cumberland Street PINs 1516-85-5425.000 and 1516-85-5472.000. The request is to rezone from O & I, Office and Institutional to C-3, Highway Commercial. The Planning Board recommended approval at the May 5 Planning Board meeting. Budget Impact None Staff Recommendation(s) None Suggested Motions) None Page 1 of 2 808 t` 810 Uun 813 809 814 818 809 109 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 May 26, 2026 at 6:30 P.M. in the Courtroom of the Dunn Municipal Building for the purpose of considering the following items: REZONING APPLICATION RZ-26-02 Owner(s): John Sutton Applicant: Delight Restaurant Group PIN#s: 1516-85-5424.000 & 1516-85-5472.000 RZ-26-02 is a zoning map amendment request to rezone two Office and Institutional (0&1) zoned parcels to Highway Commercial (C-3) 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: May 15, 2026 May 22, 2026 CITY OF City CouncilStaff Report Case: RZ-26-02 DUNN .. Planning Meeting: May 5, 2026 PLAN NiNAND INSPECTIONS Unanimous Recommendation of approval 102 N Powell Ave - PO Box 1065 - Dunn, North Carolina 28335 Location: 809 and 811 E Cumberland Street (910) 230 -3505 • CityofDunn.orp Request: Zoning Map Amendmengrom Office and Institutional (OI) to Highway Commercial (6) The applicant requests a zoning map amendment from Office and Institutional (OI) to Highway Commercial (C-3) to encourage development of the subject properties in a manner that is in keeping with the surrounding Highway Commercial area. Property Information: OWNER: John Suttion APPLICANT: Delight Restaurant Group ADDRESS/LOCATION: 809 and 811 E Cumberland Street (1516-85-5425.000 & 1516-85-5472.000) r f " ram. 4); r s Y } 4.. x, C. E w 4 Ln SIZE: The subject properties total .454 acres EXISTING ZONING:Office & Institutional EXISTING LAND USE The subject parcels contain three single family dwellings. SURROUNDING LAND USE: Direction Zoning Existing Use North Highway Commercial (C-3) Undeveloped/parking South Highway Commercial (C-3) Gas station West Highway Commercial (C-3) Restaurant East Highway Commercial (C-3) Restaurant OTHER SITE CHARACTERISTICS: The subject properties are located along one of Dunn's major thoroughfares, E Cumberland Street, much of which is already zoned Central Commercial (C-1) or Highway Commercial (C-3) district. FUTURE LAND USE PLAN CLASSIFICATIONS: This rezoning request is consistent with the City of Dunn Land Use Plan. The Future Land Use Map designates this property as Gateways & Corridors, which focuses on opportunities for improvement and/or redevelopment of areas that are adjacent to downtown and several prominent entrances to the heart of the city. Uses permitted in the C-3 zoning district are compatible with the City's vision for the areas adjacent to downtown and several prominent entrances to the city. The Future Land Use Map indicates the desired land use pattern for the City of Dunn. The map is based on the City's Strategic Vision Plan. community input from citizens and stakeholders. land use analysis, and best practices in land use planning, The crap and its color -coded character areas are meant to guide growth and development "well as land use regulations m the City and its Extraterritorial Jurisdiction (ETA Descriptions for each character area are provided on the previous page of this plan. Traditional Neighborhood Nleditun Density Residential �lospitat_.11ist�ic -� intersutte 95 US Konway Other statenocai roads -�—. Railroad Riversrstreams Vkleroodies Dunn City Lim is ....... Dunn ETJ Gateways & Corridors District: This character area is anchored by downtown as well as the key entrances into the City of Dunn. There is a 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, office, restaurants, breweries, accommodations, and entertainment spaces. Associated plan goals and policies that may be considered include the following: Future Land Use Plan: Policy 1: Manage future growth and encourage quality development through implementation of the Strategic Vision Plan, the Land Use Plank, the Unified Development Ordinance (UDO), and other plans and regulations adopted by City Council. 1.1: Review development proposals for consistency with the Future Land Use Map. Policy 2: Strengthen Dunn's identity and enhance its character by encouraging high -quality design throughout the city 2.1: Develop design standards for commercial and mixed -use development in the Gateways & Corridors character area. Policy 5: Promote location and intensity of development that mitigates impacts to transportation infrastructure while maintaining mobility needs for people and goods. 5.1: Focus higher density growth in Downtown and Gateways & Corridors. MOTIONS 1. Approve as Presented Move to approve the map amendment to Highway Commercial (C-3) as presented, based on the competent, material, and substantial evidence in the record, and find the request consistent with the Future Land Use Plan. 2. Approve with Modification to a More Restrictive District Move to approve a map amendment to a more restrictive base zoning district in lieu of Highway Commercial (C-3), based on the competent, material, and substantial evidence in the record and find the modified request consistent with the Future Land Use Plan. 3. Deny Move to deny the map amendment request, based on the competent, material, and substantial evidence in the record, and set forth why the request is inconsistent with the Future Land Use Plan and is no in the public interest. ATTACHMENTS 1. Application materials For rur Planning Department Use Only CITY OF Case Number Date Received MIA Fee Paid aJFDUNN Board Meetin NORTH CAROLINA g City Council Meeting REZONING APPLICATION OWNERSHIP INFORMATION: Applicant: Pak Luu Phone Number: ( 804 432 Applicant's Legal Interest in Property: Developer Applicant's Address: 7469 12 Mountain Wood Drive, Greenwich, CT 06830 Property Owner: John Sutton Owner's Address: 814 Neighbors Road, Dunn, NC 28334 1 08/21/2009 2663 544 Date Property Acquired: Deed Reference: Book - Page Tax FIN Number: 1516 r-A)r- nnn V 1516 r, 5472.000 OTract Four & Tract Five of Book 2663, Page 544 11,454 AC 131.64' Size (Sq. Ft. or Acres) - Street Frontage (ft) Location/Address: 809 & 811 E Cumberland St., Dunn, NC 28334 Attach a legal description (Metes and Bounds Description) of the area requested. ZONING REQUEST: A. Existing Zoning: Office & Institution (0&1) Requested Zoning: Highway Commercial (C-3) B. Land Uses: Single -Family Residential 1. Existing land uses on property to be rezoned: 2. Existing or proposed land uses on all adjoining properties: North Undeveloped/Parking South Gas Station East Fast -Food Restaurant West Fast -Food Restaurant 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 requestcd 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. half of the above listed applicant and property owner, we are humbly requesting that the City of Dunn review and approve the rezoning of the property located at 809-811 E Cumberland St, Dunn, NC (PIN 1516-85-5425.000 & 1516-85-5472.000). This request is in the interest of modifying the current zone of Office & Institution (0&1) to the proposed zone of Highway Commercial (C-3). This request is also concurrently submitted alongside a lot combination (exempt subdivision) to combine the two lots into one, as well as a site plan review application. There are currently three single-family residences located on the property. This is out of place amongst the surrounding development of uses more suited to Highway Commercial, such as drive -through restaurants, gas stations, and miscellaneous retail stores. The proposed rezoning would create more synergy throughout the corridor for options of more well -fitting uses, such as the applicant's proposed drive -through coffee shop. This rezoning would further be in the best interest of the City as it would be easier for future development to move into the area — development that would help improve the corridor. An example of this sentiment would be right next door at the new Burger King location, where street -facing landscaping and pedestrian sidewalks have been recently added. INSTRUCTIONS FOR FILING A REZONING APPLICATION 1) A petitioner for a zoning change must complete this application in full. This application will not be processed unless all information is provided. 2) Include the filing fee for each rezoning petition which is $500. 3) If the request includes the entire area of an existing recorded parcel of land a copy of the metes and bounds for the parcel shall be included with a copy of the deed. IF NOT, an accurate survey of the property proposed for rezoning must accompany the application. The survey must be completed by a registered land surveyor or professional engineer, and shall describe the subject property by metes and bounds. 4) In compliance with State Law (GS 160A-382 and 383), the justification statements under Item "C" should be typed or written legibly to answer each condition that applies to the request. Substantial weight is given to the answers provided. Please consider your answers carefully and be prepared to address your answers at each public hearing. 5) The application must be signed by the owner or by an authorized agent of the property to be rezoned; the signature shall be notarized. 6) The Planning Board meets regularly on the fourth Tuesday of each month at 6:30 p.m. at the Dunn Municipal Building located at 401 E. Broad St, and shall make recommendations to the City Council on all rezoning requests. 7) The City Council meets regularly on the second Tuesday of each month at 7:00 p.m. in the Dunn Municipal Building located at 401 E. Broad St., and is the approving authority for all rezoning requests. For additional information or assistance, call the Planning Department at (910) 230-3503. ADJOINING PROPERTY OWNERS (WITHIN 100 FEET OF REQUESTED CHANGE) NAME MAILING ADDRESS PIN NUMBER I' Sinay Family Holding Co M S Beverly Dr. #327. 1516 - 85 - 4652 .000 LLC Beverly Hilts, CA 90212-Ml 2 Vault Holdings LLC PO Box 2234, Angier, 1516 - 85 - 6526 NC 27501 .000 3. MCS DNC LLC & C/O 3 W 35th St, Ft 9, 151 fi - 85 - 6491 Holm and O'Hara LLP New York, NY, 10001-2204 .000 4. 16220 N Soottsdale Rd Wilcohess LLC Shy LLC CIO Ryan LLC Ste 650 1516 - 85 - 4290 .000 Sco tsdale. AZ 85254-1781 5. - - .000 6. - - .000 7. - - .000 8. - - .000 9. ----.000 10. - - .000 11. - - .000 12. - - .000 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. .00�Signature Date Notary Public (( w Harnett County MY om . Exp. y P BAR tea` r Sworn to and subscribed before me this day of , 20 2(D . rWiff IT, 71- Commission Expires: CITY OF DUNN NORTH CAROLINA GdAere cso""j4 bey6qd Regular Meeting, May 26, 2026 Agenda Item(s): Consideration of Data Center Moratorium Presenter(s): Justin Hembree, City Manager Responsible Staff: Justin Hembree, City Manager Action Item: Yes Attachment(s): 1) Public Hearing Notice 2) Ordinance Instituting 180 Day Moratorium Background At the April 28, 2026, Regular Meeting, the City Manager provided an overview to the Council concerning the emerging issue of data centers and how local governments across North Carolina are responding. The Council directed further study and wanted the matter placed on the agenda for the May Work Session. At the May 12, 2026, Work Session, the City Manager presented a staff overview of data centers, their characteristics, and the emerging regulatory landscape. He noted that Chapter 160D of the General Statutes allows municipalities and counties to adopt temporary development moratoriums for the purpose of studying land uses and developing appropriate regulations. After the presentation, the Council directed staff to prepare a data center Moratorium Ordinance for consideration at the May 26t" Regular Council meeting and to advertise a Public Hearing on the moratorium to be held during the May 26, 2026, Regular meeting. The attached moratorium would impose a 180 day freeze on the permitting of data centers within the City of Dunn's planning jurisdiction during which time the City would develop and consider adopting development and zoning standards and mitigation methods applicable to data centers. If adopted the moratorium would begin on May 27, 2026, and terminate on November 22, 2026. Staff Recommendation Staff recommends Council adopt the attached 180 day moratorium on the permitting of data centers within the City's planning jurisdiction. Budget Impact N/A Page 1 of 2 Suggested Motion(s) Motion to adopt the attached 180 day moratorium on the permitting of data centers within the City's planning jurisdiction. Page 2 of 2 NOTICE OF PUBLIC HEARING PROPOSED TEMPORARY MORATORIUM ON DATA CENTERS, DATA PROCESSING FACILITIES, CRYPTOCURRENCY MINING, AND OTHER USES ASSOCIATED WITH DATA PROCESSING FACILITIES The Dunn City Council will hold a Public Hearing on Tuesday, May 26, 2026 at 6:30 p.m. or as soon thereafter as possible in the Council Chambers at the Dunn Municipal Building, located at 401 East Broad Street, Dunn, NC to consider the following: Proposed temporary moratorium on the development approval of data centers, data processing facilities, cryptocurrency mining, and other uses associated with data processing facilities pursuant to NCGS 160D-107, while the City of Dunn considers updates to its Unified Development Ordinance governing such uses. The public is invited to attend this Public Hearing to express their views, either in favor of or in opposition to the proposed moratorium. Persons wishing to be heard are invited to make written or oral comments. This the 13th day of May, 2026. Melissa R. Matti City Clerk Legal Ad: Advertise on May 15, 2026 and May 19, 2026 ORDINANCE OF THE CITY OF DUNN CITY COUNCIL INSTITUTING ATEMPORARY MORATORIUM ON THE PERMITTING OF DATA CENTERS, DATA PROCESSING FACILITIES, CRYPTOCURRENCY MINING OPERATIONS AND ANY USE ASSOCIATED WITH DATA PROCESSING FACILITIES WITHIN THE CITY OF DUNN, NORTH CAROLINA PURSUANT TO NORTH CAROLINA GENERAL STATUTE §160D-107 WHEREAS, pursuant to North Carolina General Statute §160D-107, local governments may adopt an ordinance authorizing a temporary moratorium on any development approval required by law; and WHEREAS, the City of Dunn Unified Development Ordinance (UDO) does not define data centers, data processing facilities, cryptocurrency mining, and other uses associated with data processing facilities as specific uses; and WHEREAS, the City of Dunn City Council, at its May 26, 2026, Regular Meeting held a legislative public hearing regarding this moratorium in accordance with North Carolina General Statute §160D-107; and WHEREAS, the City of Dunn City Council believe such a moratorium will protect the public interest and welfare of the residents of the City of Dunn until such regulations regarding the aforementioned uses are adopted. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Dunn: Section 1. A temporary moratorium is hereby imposed commencing on May 27, 2026, and expiring no Later than November 22, 2026, or upon adoption by the Dunn City Council of Unified Development Ordinance amendments regarding data centers, data processing facilities, cryptocurrency mining operations, and uses associated with data processing facilities not yet defined in the City of Dunn's Unified Development Ordinance. This moratorium specifically includes the corporate limits and extraterritorial jurisdiction of the City of Dunn, as well as any future City of Dunn planning area as depicted on the City of Dunn Land Use Map. For the purposes of this moratorium, a data center, data processing facility, or cryptocurrency operation is a building, a dedicated space within a building, or group of buildings housing computer systems and associated components, such as telecommunication and data processing systems, to be used for remote storage, processing, or distribution of large amounts of data. Examples of such data include, but are not limited to, computationally intensive applications such as cryptocurrency mining, artificial intelligence (A.I.) computing, weather modeling, genome sequencing, application hosting, cloud storage, video and technical streaming services, etc. This moratorium shall not apply to data processing equipment or server rooms that are clearly incidental and subordinate to a permitted principal use and are intended solely to Page 1 of 3 support the on -site operations of such principal use, provided that such equipment or server rooms comply with all applicable provisions of the City's Unified Development Ordinance. Such principal use may include, but is not limited to, hospitals, medical facilities, financial institutions, offices, educational institutions, or similar uses, as long as such data processing activities are not offered as a primary service to off -site users. Section 2. In compliance with the requirements of North Carolina General Statute §160D-107, the City of Dunn adopts the following statements: (1) Data centers, data processing facilities, cryptocurrency mining operations, and uses associated with data processing facilities require considerable amounts of electricity and water usage, create noise, and possible environmental contamination which can result in negative impacts for residents and communities near the facilities. As an alternative course of action to a moratorium, the City reviewed the adequacy of its existing development regulations to ascertain whether any action at all was needed. This resulted in a determination that current regulations contained no permitting, siting, definitions, or general development standards applicable to data centers, data processing facilities, cryptocurrency mining operations, and uses associated with data processing facilities and such regulations were thus inadequate. The City has therefore determined that to simply allow this intensive land use to be permitted without regard to location, height, size, density, population, industry, residence or other purposes would be counter to the stated goals of the City's Land Use Plan and not in the public's best interest. (2) City of Dunn staff are in the process of developing zoning standards and mitigation methods to address these intensive land use types that may cause detrimental harm to the natural environment and the quality of life of City residents. The City seeks time to develop such standards. (3) The moratorium shall begin on May27, 2026, and shallterminate November22, 2026, or upon adoption by the Dunn City Council of a UDO amendment addressing the land uses of data centers, data processing facilities, cryptocurrency mining operations, and uses associated with data processing facilities, whichever comes first. This one - hundred and eighty day moratorium is necessary to allow City staff and the Planning Board sufficient time to study these uses and their impacts, to consider zoning standards and mitigation methods, and to prepare an amendment to the UDO to address data centers, data processing facilities, cryptocurrency mining operations, and uses associated with data processing facilities prior to the expiration of the moratorium. (4) During the moratorium, City staff and the Planning Board will study the impacts of data centers, data processing facilities, cryptocurrency mining operations, and uses associated with data processing facilities on communities. City staff and the Page 2 of 3 Planning Board will also investigate how other communities in North Carolina and across the United States have addressed these impacts through zoning regulations. City staff and the Planning Board will develop the land use regulations required to mitigate the negative impacts associated with land uses described as data centers, data processing facilities, cryptocurrency mining operations, and uses associated with data processing facilities. Subsequently, UDO amendments will be proposed which will then follow the legislative process for adoption. Public input will besought throughout the process. The research, policy development, and legislative processes necessitate an adequate moratorium time limit of one -hundred and eighty days. Section 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is, for any reason, held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subsection, sentence, clause, or phrase thereof irrespective of the fact that anyone or more sections, subsections, sentences, clauses, or phrases be declared invalid. Section 4. All ordinances or parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict. Section 5. This Ordinance shall be in full force and effect beginning on May 27, 2026. Adopted, this the 26th day of May, 2026. CITY OF DUNN William P. Elmore, Jr., Mayor ATTEST: Melissa R. Matti, City Clerk Page 3 of 3 CITY OF � DEN NORTH CAROLINA muec"ukw4 6efixs! Regular Meeting, May 26, 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. Employee Picnic Recap b. Public Information and Outreach Page 1 of 1 luiliu[Q:7a �Ilul To: Honorable Mayor, City Council Members From: Cary McNallan, Finance Director Subject: April 2026 Financial Report (unaudited) May12,2026 Mayor William P. Elmore, Jr. Mayor Pro Tern April Gaulden Council Members J. Wesley Sills Raquel McNeil Billy Tart Alan Hargis Dr. David L. Bradham City Manager Justin Hembree • Cash & Investment Balances: Cash and investment balances for all funds totaled $13,564,170 as of April 30, 2026, compared to $7,605,483 a year ago. The increase is the result of receiving a number of state grant reimbursements for water & sewer project expenditures. The city also has a balance of $4,549,934 in the Eastside Pump Station Construction account. Cash Balances by Fund $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 O,tib O,LP O,�b O,yh .yh oyh -$5,000,OQ,(p�~ $10,000,000 ■ General & Grant Funds + Misc Projs • Powell Bill/Street Resurf Stormwater Fund ■ Water Ops & Projs ■ Sewer SRF Fund Cash and Investments $1,11S,609 , $360 , 0.0% 6.2% $4,549,934, r 25.1% ■ Sewer/Water Ops & Projs (Swr only FY26) a Water SRF Fund $1,327,715, j $11,120,486, 7.3% J( 61.4% ■ NC Capital Mgmt Trust 0 First Citizen Bank ■ BAN Constr Acct KS Trust Investments ■ Misc Other Wkere commani� 6Tins! • The benchmark for this period is 83.3% of the budget, however, revenues and expenditures will continue to be recorded for the next few weeks. • General Fund Property Taxes collected by the County for the month of March 2026 totaled $125,484 compared to $117,525 for March 2025. FY26 year to date property tax revenues received are $5,769,355. Our total estimated taxes for FY26 are $5,931,100. These totals include taxes for Property, Motor Vehicles, & Downtown District. Ad Valorem Tax Revenues by Month Collected $2,500,000.00 $2,000,000.00 $1, 500,000.00 $1,000,000.00 $500,000.00 a, v to «- > U Ln -0 > C Ln W 41 > U m a M C ry n a 0 d r4 to M a m tv M 0. 0 N d M 3 >•gcn0ZQ u S�Q� q a0ZQ LZZ> c > C M 5 • For Sales Taxes, our February receipts were $301,268. This is $44,875 more than the same period last year. Our budget for sales tax revenue for FY26 is set at $3,450,000, and so far, this year we have recorded $2,627,683, or 76.16%. Sales Tax Reports from the Department of Revenue are provided at least two months behind actual collections. Our next sales tax deposit will be June 15 tn. Sales Tax Collections by Month $400,000.00 $350,000.00 $300,000.00 - $250,000.00 $200,000.00 $150,000.00 $100,000.00 $50,000.00 �Y S] L >a, M C v Oo +r > U to .0 > C to to +. u > U Ln f V LL Q L -i N Q V Z C! N LZ Q -r+ N Q IV 8 Z o `-„ tL C _> H C >. +/� C M M • Building Permit and Development Fees for the month of April were $15,310. To date we have collected a total of $185,928 or 101.0% of the budget. At the same time last year, our year-to-date revenue was $125,033. The budget for the 2026 budget year is $184,000. • The following charts and graphs include Budgeted and Actual, Revenue and Expenditures for the General Fund, Water & Sewer Fund, Stormwater Fund, and the Powell Bill Fund. FY26 YTD Actuals vs Budgets - Revenues FY25 YTD Actuals vs Budgets - Revenues All Funds - FY25 April FY26 All Funds - FY24 April FY25 Revenue Category/Fund FY26 Budget MTD Actuals YTD Actuals % of Bdet Revenue Category/Fund FY25 Budget MTD Actuals YTD Actuals % of Bde GF-Ad Valorem Taxes 5,931,100.00 125,484.52 5,809,883.88 98.0% GF-Ad Valorem Taxes 5,759,728.00 151,736.43 5,700,079.21 99.0% GF-Sales Taxes 3,481,000.00 301,067.10 2,349,766.65 67.5% GF-Sales Taxes 3,387,400.00 271,981.55 2,053,392.41 60.6% GF-Other Taxes 783,450.00 - 390,155.57 49.8% GF-Other Taxes 718,150.00 - 397,608.85 55.4% GF-Licenses & Permits 564,250.00 52,320.54 545,190.01 96.6% GF-Licenses & Permits 563,650.00 48,498.50 467,503.35 82.9% GF-Charges for Services 1,701,779.00 139,556.63 1,440,807.55 84.7% GF-Charges for Services 1,566,162.73 137,952.36 1,380,660.29 88.2% GF-Other Revenue 2,637,930.38 49,005.73 1,285,797.63 48.7% GF-Other Revenue 4,702,346.56 163,751.53 1,381,441.05 29.4% GF-Operating Trfs In 126,473.15 - 126,471.15 100.0% GF-Operating Trfs In 2,047,889.00 - 1,927,383.00 94.1% General Fund Totals 15,225,982.53 667,434.52 11,948,072.44 78.5% General Fund Totals 18,745,326.29 773,920.37 13,308,068.16 71.0% Utility Chgs-Water 4,777,600.00 447,829.86 4,098,210.09 85.8% W&S Utility Chgs-Water 4,362,325.00 374,729.87 3,445,232.26 79.0% Utility Chgs-Sewer - - - #DIV/0! W&S Utility Chgs-Sewer 3,897,450.00 329,390.99 3,049,047.90 78.2% Water Utility Other Rev 408,748.45 20,340.41 354,209.83 86.7% W&S Utility Other Rev 3,114,070.06 22,090.57 460,196.05 14.8% Water Utility Oper Trfs In 35,448.09 - 35,448.09 100.0% W&S Utility Oper Trfs In - - - #DIV/0! Water Fund Totals 5,221,796.54 468,170.27 4,487,868.01 85.9% W&S Fund Totals 11,373,845.06 726,211.43 6,954,476.21 61.1% Utility Chgs-Water - - - #DIV/0! W&S Utility Chgs-Water - - - #DIV/0! Utility Chgs-Sewer 5,071,232.00 443,662.23 3,983,125.85 78.5% W&S Utility Chgs-Sewer - - - #DIV/0! Sewer Utility Other Rev 688,583.17 15,806.88 55,600.66 8.1% W&S Utility Other Rev - - - #DIV/0! Sewer Utility Oper Trfs In 53,172.13 - 53,172.13 100.0% W&S Utility Oper Trfs In - - - #DIV/0! Sewer Fund Totals 5,812,987.30 459,469.11 4,091,898.64 70.4% W&S Fund Totals - - - #DIV/01 Stormwater Revenues 661,163.69 11,844.88 661,572.72 100.1% Stormwater Revenues 524,382.11 10,455.16 529,839.16 101.0% StormwaterTotals 661,163.69 11,844.88 661,572.72 100.1% StormwaterTotats 524,382.11 10,455.16 529,839.16 101.0% Powell Bill Revenues 1,734,554.00 34,080.77 994,445.52 57.3% Powell Bill Revenues 974,000.00 35,756.15 972,623.84 99.9% Powell Bill Totals 1,734,554.00 34,080.77 994,445.52 57.3% Powell Bill Totals 974,000.00 35,756.15 972,623.84 99.90/6 Budget to Actual - FY25 Revenues GF-Ad Valorem Taxes GF-Sales Taxes GF-Other Taxes GF-Licenses & Permits GF-Charges for Services OF -Other Revenue GF-Operating Trfs In Utility Chgs-Water Utility Chgs-Sewer Water Utility Other Rev i Sewer Utility Other Rev 6 Water Utility Oper Trfs In J Sewer Utility Oper Trfs In Sto rmwate r Tota Is - Powell Bill Revenues $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 ■ YTD Actuats ■ FY26 Budget FY26 YTD Actuals vs Budgets - Expenditures FY25 YTD Actuals vs Budgets - Expenditures All Funds - FY25 April FY26 All Funds - FY24 April FY25 Departments/Funds FY26 Budget MTDActuals YTD Actuals %of%ofBdet Departments/Funds FY25 Budget MTD Actuals YTD Actuals %ofBdgt General Govt 3,395,698.61 213,759.42 2,673,723.40 78.7% General Govt 3,156,827.15 185,327.79 2,366,285.57 75.0% Public Safety 5,619,699.00 448,585.48 4,531,479.10 80.6% Public Safety 5,345,922.83 329,206.06 4,180,076.68 78.2% Public Works 2,059,160.30 153,569.80 1,625,923.12 79.0% Public Works 2,012,515.26 157,128.37 1,536,458.73 76.3% Sanitation & Waste Removal 876,000.00 8,105.36 714,790.06 81.6% Sanitation & Waste Removal 857,000.00 3,246.90 626,352.17 73.1% Parks, Recreation, & Cemetery 1,763,861.62 141,448.70 1,489,015.86 84.4% Parks, Recreation, & Cemetery 1,690,341.75 131,295.88 1,310,799.26 77.5% Library 19,495.00 14,363.67 18,719.32 96.0% Library 6,006.00 297.85 4,713.66 78.5% GF Debt Service 806,708.00 15,684.68 696,028.61 86.3% GF Debt Service 2,529,718.00 35,037.38 810,235.17 32.0% GF OperatingTrfs Out & Resrvs 685,360.00 111,658.02 601,406.33 87.8% GF OperatingTrfs Out & Resrvs 3,146,995.30 20,575.00 2,172,287.30 69.0% General Fund Totals 15.225,982.53 1,107,175.13 12,351,085.80 81.1% General Fund Totals 18,745,326,29 862,115.23 13,007,208.54 69.4% Water Admin & Finance 883,463.53 38,724.15 499,824.45 56.6% W&S Admin & Finance 1,224,657.73 76,473.48 995,755.40 81.3% Water Distribution/Collection 1,306,868.92 59,863.96 1,181,329.96 90.4% W&SDistribution/Collection 2,798,726.34 143,799.54 2,431,030.80 86.9% Water Treatment Plant 2,101,159.00 104,224.32 1,520,178.91 72.3% Water Treatment Plant 2,237,896.69 360,904.54 1,703,521.34 76.1% Sewage Treatment Plant - - - #DIV/O! Sewage Treatment Plant 2,113,296.22 163,042.58 1,748,961.19 82.8% Water Debt Service 930,305.09 22,030.16 236,776.21 25.5% W&S Debt Service 1,671,593.00 15,938.41 451,692.68 27.0% Water OperatingTrfs Out & Resrvs - - - #DIV/O! W&S OperatingTrfs Out & Resrvs 1,327,675.08 7,500.00 766,346.00 57.7% Water Fund Totals 5,221,796.54 224,842.59 3,438,109.53 65.8% W&S Fund Totals 11,373,845.06 767,658.55 8,097,307.41 71.2% Sewer Admin & Finance 934,269.79 36,515.15 544,759.57 58.3% W&S Admin & Finance - #DIV/O! Sewer Distribution/Collection 1,054,551.38 57,213.49 745,833.74 70.7% W&S Distribution/Collection #DIV/0! Water Treatment Plant - - #DIV/O! Water Treatment Plant #DIV/O! Sewage Treatment Plant 2,167,809.00 161,784.47 1,781,497.01 82.2% Sewage Treatment Plant #DIV/O! Sewer Debt Service 1,641,585.13 325,433.38 643,694.79 39.2% W&S Debt Service #DIV/O! Sewer OperatingTrfs Out & Resrvs 14,772.00 - - 0.0% W&S OperatingTrfs Out & Resrvs #DIV/O! Sewer Fund Totals 6,812,907.30 S80,946.49 3,715,785,11 63.9% W&S Fund Totals - - - #MVIO! Stormwater Operations 444,650.69 1,060.69 42,839.66 9.6% Stormwater Operations 427,751.61 2,193.52 223,835.59 52.3% Stormwater Debt Service 177,303.00 412.90 3,190.60 1.8% Stormwater Debt Service 52,630.00 2,812.69 5,567.61 10.6% St/W OperatingTrfs Out & Resrvs 39,210.00 - 29,753.01 75.9% St/W OperatingTrfs Out & Resrvs 44,000.50 - 0.50 0.0% StormwaterTotais 661,163.69 1,473.59 75,783.27 11.5% Stormwater Totals 524,382.11 5,006.21 229,403.70 43.7% Powell Bill Operations 1,519,302.00 2,444.28 1,492,028.32 98.2% Powell Bill Operations 308,747.00 3,129.96 210,852.16 68.3% Powell Bill Debt Service 215,252.00 107,625.88 215,251.76 100.0% Powell Bill Debt Service 665,253.00 107,625.88 215,251.76 32.4% PB OperatingTrfs Out & Resrvs - - - #DIV/O! PB OperatingTrfs Out & Resrvs - - - #DIV/O! Powell Bill Totals 1,734,554.00 110,070.16 1,707,280.06 98.411/a Powell Bill Totals 974,000.00 110,755.84 426,103.92 43.7% Budget to Actual - FY26 Expenditures General Govt Public Safety Public Works Sanitation & Waste Removal Parks, Recreation, & Cemetery Library , GF Debt Service GF OperatingTrfs Out & Resrvs Water Admin & Finance Sewer Admin & Finance Water Distribution/Collection Sewer Distribution/Collection Water Treatment Plant Sewage Treatment Plant Water Debt Service Sewer Debt Service Water OperatingTrfs Out & Resrvs Sewer OperatingTrfs Out & Resrvs , Stormwater Operations Stormwater Debt Service St/W OperatingTrfs Out & Resrvs Powell Bill Operations Powell Bill Debt Service PB OperatingTrfs Out & Resrvs $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 CITY OF JDUNN �.��. NORTH CAROLINA WlVecros.~4 bVirs! Regular Meeting, May 26, 2026 Agenda Item(s): Departmental Reports Presenter(s): Various Departments Responsible Staff: Various Departments Action Item: No Attachment(s): None Updates will be provided on the following: a. Code Enforcement Page 1 of 1 Monthly Recreation Report 2026 April Monthly Narrative Report Indoor Soccer The season concluded on April 7th. Brandon Brockmeyer's 13U team won the tournament. Spring Sports Opening ceremonies for baseball and softball were held on Thursday, April 2nd at Clarence Lee Tart Memorial Park. The ceremony was followed by games to kick off the start of the regular season. The AA (8u) baseball league is playing in-house while the other leagues are playing within the county. T-ball (4u) and A -League (6u) teams began practices the week of April 6th. Each team practices twice a week Monday - Saturday. Games will begin May 5th and will be played at Tart Park softball fields. Miracle League Registration began on March 12th and remains open. Track and Field The track and field program began on April 20th at Triton High School. Senior Center April was a more relaxed month for the seniors following a busy March. They continued to participate in their regular weekly activities, and we also hosted three guest speakers during the month. Recreation Advisory Board The last meeting was held on Tuesday, April 21 St at 6:00 pm in the Dunn Community Center. The next meeting is on August 18th at 6:00 p. m. in the Dunn Community Center. 10F,1DUNN I &:N:(C PFF PARKS AND RECREATION 205 Jackson Rd - PO Box 1065 (910) 892-2976 Dunn, North Carolina 28335 CityofDunn.org April Monthly Report Dunn Parks & Recreation Rentals Facility Rentals, Programs & Etc. Facility Dunn Community Building Numbers 3 Clarence Lee Tart Memorial Park 0 Multipurpose Room 0 Codrin ton Park 0 Nathan Harris Athletic Complex @ Tyler Park 1 Baseball & Softball Field Rentals 1 Tennis Courts 0 Picnic Shelter Rentals 3 Sports Registrations Miracle League 11 P K V as Recreational Walkers 272 Free Play 14-17 years old 67 Free Play 11-13 years old 35 Free Play 10 & Under years old 7 Adult Play 12 Batting Cage Rentals 0 Pickleball Players 107 Racquetball Court 0 Senior General Sign In 84 Bible Study 26 Bingo 62 Exercise Class 103 Educational Class & Other Activities 10 Line Dancing 40 Cemetery Report Resthaven Cemetery SectionsTotal Existing section 1-9, 11, 13 & 15 6,960 6,557 Available 403 Section 12 (opened May 2023) 432 40 390 Section 14 (opened May 2023) 488 56 432 Section 10 & 16 (not yet o en) 1,248 0 0 Greenwood Memorial-7 Existing Section A — Z Existing Section A — F 7-10,092 3,448 9,743 1,508 349 1,828 Existing section I, 11, III 272 272 0 Section G— P (not yet open) 35336 0 0 jOF cDiJNN PARKS AND RECREATION Social Media Activity April 2026 Happy Friday!! We began our morning a Miracle League game. Dunn Elementary School EC class and their buddies took the field and what a ballgame! ! ! It was the Best way to begin such a beautiful day. Planning &Inspections Monthly Report TO: City Manager and City Council FROM: Stephanie Goodrich DATE: May 5, 2026 SUBJECT: Planning & Inspections - Monthly Report Please see the following report for the month of April 2026 from the Planning & Inspections Department. Planning Development Permits 10 Rezonings Conditional General Site Plans 2 Subdivision Plans Plats Inspections Permits Issued Commercial 1 Demolition 1 Electrical 4 Mechanical 20 Plumbing 6 Swimming Pools Residential 13 Signs 1 Tent/Temporary Membrane 1 Permit Fees $ 73,807.00 Inspections Performed 499 Certificate of Occupancy/Completion Issued 3 Public Utilities Dept I April 2026 I Monthly Report 101 E. Cleveland St., Dunn, NC 28334 phone 910-892-2948 1 fax 910-892-8871 www.dunn-nc.org Black River Wastewater April Treatment Facility Total Million Gallons Treated 42.764 Average Million Gallons Per Day 1.425 Treated Rainfall in Inches 1.31 *Data from NC DEQ DMR documents and Black River Wastewater Treatment Plant records $ S y ...A. ..,' ',?,.1-:—... _*Vii "'i'.:4-: 14 -.,.:, .,,,., --,..„,_ .. .,4144,,,-..::::..., t - ‘.,:,. ffiliab'fir-g6,''' 0 — 4 Maintenance building Average Daily Flow 2 1.8 1.6 1.4 0 1.2 c 0 C7 1 c 0 0.8 0.6 0.4 0.2 0 0.6 0.4 CC 4- 0 0.3 V) t V C 0.2 0.1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 April Rain Fall 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 April Total Million Gallons Treated 51.992 V) 50 48.031 C- 0 44.909 40 C: 0 20 10 Jan. Feb. March 42.764 April May June , July Aug. Sept. Oct. Nov. Dec. CITY OF DUNN PUBLIC UTILITIES Public Utilities Dept April 2026 Monthly Report 101 E. Cleveland St., Dunn, NC 28334 phone 910-892-2948 fax 910-892-8871 www.dunn-nc.org New Sewer Tap Sewer Tap Renewals Water Construction Sewer Stoppage Sewer Construction Manhole Inspection 35 _. Outfall Maintenance 2 . Hydrant Repair 5 Utility Locates 712 Fe Water Meter 144 Repair/Investigations Retire Water and Sewer Services AL Valve Maintenance 44 �Taste and Odor Complaint Water Quality Flushing 1 Low Pressure Complaint Other — Water 10 Other — Sewer 14 Public Utilities Dept-WTP April 2026 Monthly Report 101 E. Cleveland St., Dunn, NC 28334 phone 910-892-2948 fax 910-892-8871 www.dunn-nc.or Total Million Gallons Pumped 88.175 Average Million Gallons Per Day 2.939 Pumped Total Million Gallons Bulk Sales 56.968 Water Plant Averages and Total Million Gallons Pumped 2025 -2026 120 100 80 c I 0 60 15 j o 61 40 1 20 6 5 7 37 1 2.M 2.M 2.M 3.M 3.M 3.M 3.M 2.M 2.M 2.M 2.M 2.M 2. Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 2025-2026 V Daily Average Pumped uTotal Million Gallons Bulk Sales Li Total Million Gallons Pumped Bulk Chemicals and Rain Fall Totals 2025-2026 90 80 70 �. 60 50 40 30 20 ... 10 0 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 -Chemicals Used X 1,OOOlbs -Rain Fall in Inches *Data from A.B. Uzzle Water Treatment Plant records, and Finance Department billing. PUBLIC WORKS DEPARTMENT APRIL 2026 MONTHLY REPORT 101 E CLEVELAND ST, DUNN NC 28334 PHONE 910-892-2948 FAX 910-892-8871 www.dunn-nc.org STREET DEPARTMENT TYPE ALLEY MAINTENANCE BULK ITEM BRUSH -LIMB PICKUP CATCH BASIN LID CITIZEN COMPLETE CUT LEAVES-G RASS ON CALL POTHOLE/STREET REPAIRS ROAD CONDITION INSPECTION ROADWAY ROOTS SAFETY CONCERN TREE REMOVAL TREE TRIM NEEDED TOTAL WORK ORDERS NUMBER 1 201 535 1 3 14 79 12 21 1 1 2 1 250 1122 PUBLIC WORKS DEPARTMENT APRIL 2026 MONTHLY REPORT 101 E CLEVELAND ST, DUNN NC 28334 PHONE 910-892-2948 FAX 910-892-8871 www.dunn-nc.org TONNAGE REPORT TYPE NUMBER SOLID WASTE IN TONS 230.03 YARD WASTE IN TONS 32.18 RECYCLING WASTE IN TONS 49.95 GRAND TOTAL TONS 312.16 *Data from Republic Services Report PUBLIC WORKS DEPARTMENT APRIL 2026 MONTHLY REPORT 101 E CLEVELAND ST, DUNN NC 28334 PHONE 910-892-2948 FAX 910-892-8871 www.dunn-nc.org CEMETERY DEPARTMENT TYPE NUMBER FILL GRAVE 9 GRASS MOWING & WEED EATING 66 OPEN/CLOSE 9 TOMBSTONE MAINTENANCE 250 TOTAL WORK ORDERS 334 CITY OF DUNN NORTH CAROLINA WAe�eco-mft&j4 bV'ssl Announcements: • The next Work Session of the Dunn City Council is scheduled for Tuesday, June9that 6:30 p.m. • The next Regular Session of the Dunn City Council is scheduled for Tuesday, June 23rd at 6:30 p.m. • Deadline for adopting FY 26-27 Budget is Tuesday, June 3 01h. a