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HomeMy WebLinkAboutAgenda 06-09-2026 WSCITY OF n DUNN ® NORTH CAROLINA lw"-"ewrnu nifdr befowl CITY COUNCIL WORK SESSION 6:30pm, Tuesday, June 9, 2026 Dunn Municipal Building 401 East Broad Street Dunn, North Carolina 28334 -AGENDA- CALL TOORDER- William P. Elmore, Jr., Mayor INVOCATION & PLEDGE OF ALLEGIANCE- Dr. David Bradham, Council Member CONSIDERATION & APPROVAL OF THE AGENDA PRESENTATIONS 1. Juneteenth Proclamation CONSENTAGENDA Consent Agenda items are considered and approved by a single motion and vote. Any member of the City Council may request an item be removed, without a motion or a vote, from the Consent Agenda for separate consideration. If an item is removed from the Consent Agenda, that item will be placed under the Items for Discussion & Possible Action section of the agenda. 2. Approval of May 26, 2026 Regular Meeting Minutes ITEMS FOR DISCUSSION & CALENDARING FOR JUNE 23, 2026 3. Medical Retirement of K9 Max 4. Public Hearing- FY27 Recommended Budget REPORTS & UPDATES 5. City Manager's Report a. Cotton Gin Demolition 6. 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 1 of 1 OF CITY ® NORTH CAROLINA I Juneteenth 2026 WHEREAS, Juneteenth has been celebrated annually since June 19, 1866, to mark the abolition of sanctioned slavery in the United States; and WHEREAS, on September 22, 1862, President Abraham Lincoln issued the Emancipation Proclamation, declaring that as of January 1, 1863 all enslaved people in the rebellious area would be thenceforward and foreverfree; changingthe nature of the Civil War; and WHEREAS, in addition to freeing enslaved people held in Confederate States, the Emancipation Proclamation enable African Americans to enlist in the Union Arm as U.S. Colored Troops; and WHEREAS, it took almost three more years of conflict and loss to bring about the end of the Civil War, and the ratification of the Thirteenth Amendment to the United States Constitution in December 1865, to officially end slavery in the United States; and WHEREAS, the news of freedom disseminated gradually throughout the nation; on June 19, 1865, two months after the official surrender of the Confederacy at Appomattox, Union Soldiers arrived in Galveston, Texas, and issued General Order No. 3 announcing freedom to some of the last enslaved people in the united States; and WHEREAS, in 2026, America celebrates the 250t" anniversary of the signing of the Declaration of Independence marking the freedom of the United States, though not all Americans were truly free, and WHEREAS, despite more than 150 years sine the abolition of slavery, there remain economic, institution and social barriers for Black people in America; and WHEREAS, on this anniversary each year, organizations and individuals throughout North Carolina and our nation celebrate African American history, heritage, culture, and freedom with events and ceremonies that reflect the power of community, family, art, and tradition in the face of oppression; and WHEREAS, the North Carolina General Assembly established in 2008 the North Carolina African American Heritage Commission to preserve, protect, and promote African American history, art and culture for all people in addition to stewarding NC Freedom Park in Raleigh, dedicated to the African American fight for freedom; and WHEREAS, the City of Dunn encourages people to observe Juneteenth as an opportunity to reflect, rejoice, and work in community toward a brighter future as we continue to address racial injustices in our societytoday; NOW, THEREFORE BE IT RESOLVED that I, Mayor William P. Elmore Jr., of the City of Dunn do hereby proclaim June 19, 2026 as "Juneteenth" in the City of Dunn and commend its observance to all residents. Proclaimed this the 9" day of June, 2026 William P. Elmore Jr, Mayor ATTEST: Melissa R. Matti, City Clerk V&re commtfnif 6Tinr! CITY OF DUNN ® NORTH CAROLINA Mwe,co..cmw4 ky6v/ Work Session, June 9, 2026 Agenda Item(s): Approval of May 26, 2026 Regular Meeting Minutes Presenter(s): Melissa Matti, City Clerk Responsible Staff: Melissa Matti, City Clerk Action Item: Yes Attachment(s): 1) May 26, 2026 Regular Meeting Minutes Background None Budget pact None Staff Recommendation(s) Approval of Minutes as presented. Suggested Motion s Motion to approve May 26, 2026 Regular Meeting Minutes as presented. Page 1 of 1 Dunn City Council Regular Meeting Tuesday, May 26, 2026, 6:30 p.m., Dunn Municipal Building Minutes PRESENT: Mayor William P. Elmore Jr., Mayor Pro Tern April Gaulden, Council Members J. Wesley Sills, Raquel McNeil, Billy N. Tart, Alan Hargis, and Dr. David L. Bradham. Also present: City Manager Justin Hembree, Assistant City Manager Billy R. Godwin, HR Director Connie Jernigan, Finance Director Cary McNallan, Senior Planner Stephanie'Goodrich, Police Chief Lynn Gay, Public Works Director Dwayne Williams, Water Plant Mo Officer Stephen Hodges, Code Enforcement Officer Alan Cana, Christy Sweeney, City Attorney Tilghman Pope and City Clerk ME CALL TO ORDER Mayor William P. Elmore, Jr. called the meetingto orderat'6: Elmore noted the warm conditions in the chamberdue,'o air to silence their cell phones. INVOCATION Reverend Tyler Ward, Senior Pastor at First Baptist Church o PLEDGE OF ALLEGIANCE Council Member Hargis led in the Pledge CONSIDERATION & APPROVAL OF THE Motion by Council h motion unanimously CONSIDERATION M Mayor Elmore called the agenda as preset Jheri Hardaway 311 North Ellis venue second by er,r Steoud, Code Enforcement Administrative Support Specialist a Matti. on Tuesday, May 26, 2026. Mayor ionin¢ issues and°asked attendees gave the invocation. to approve the agenda. The AGENDA :hanges to th Benda. Hearing none, a motion to approve by Council Member McNeil to approve the agenda. The Ms. Hardaway addressed the Council on three (3) matters. First, she expressed gratitude to the Mayor " \a- v and Commissioner McNeil for their assistance in facilitating stair repairs for an elderly neighbor, 87- year -old Mr. Matthews, noting that the repairs allowed him to continue living independently in his home. Second, she raised concerns about the property at 402 North Orange Avenue, located across the street from an elementary school. She described the property as unmaintained with overgrown grass, a history of open doors, and past issues with rats and a long-standing construction dumpster, expressing concern about public safety, particularly for children. Third, she proposed the creation of a community garden as a potential revenue stream and community engagement tool, citing examples from nearby communities, the possibility of connecting with local schools and nursing homes, and the potential to complement the upcoming farmer's market. CONSENTAGENDA Mayor Elmore presented the Consent Agenda items, which included seven (7) items: • Approval of May 12, 2026 Budget Work Session Minutes • Approval of May 12, 2026 Work Session Minutes • Capital Project Ordinance Amendment I — East Bay Street & South Wilson Avenue Stormwater Project • Capital Project Ordinance Amendment II — Machine & Welding Outfall Sewer Line Improvement Project • Capital Project Ordinance Amendment II — Water Treatment Plant Land Purchase Project • Lead & Copper Line Rules —KCI Associates Contract —Amendment I • Budget Amendment for Various Accounts Motion by Council Member Bradham, second by Mayor Pro TernGaulden to approve the Consent Agenda, comprised of items 1 through 7. The motion carried unanim us y Copies of the Capital Project Ordinance Amendment I — East Bay Street & South Wilson Avenue Stormwater Project (02026-06), Capital Project Ordinance Amendment 11 — Machine & Welding Outfall Sewer Line Improvemenf�P.roject (02026-07) and Budget Amendment (BA-2016-31), Capital Project Ordinance Amendment II — Water TreotmenNPlant Land Purchase Project (02026-08), Lead & Copper Line Rules — KCI Associates Contract Amendment 1, and Budg t Amendment for Various Accounts (BA-2026-29) are incorporated into these minutes as Attachment #1 ITEMS FOR DISCUSSION & POSSIBLE ACTION Zoning/Map Amendment (RZ-26-02) 809 & 811 E Cumberland Street Public Hearine Mayor Elmore opened the Public Hearirig, 1 Goodrich to present the request. Ms. Good( Amendment from Office & Institutional (0&1) 811 East Cumberland and issued a unanim was to consider all F intended use. /,_- Ms. Goodrich including undi Cumberland S The.City's Future Land UE Corridor character area vu Staff found'the request coi and appropriatpdensity in No members 61 was closed at 6 Decision noted thattH iendation of p.m. and called-uponSenior Planner Stephanie lained that the Tapp cant sought a Zoning Map hway Commercial (C-3) for properties at 809 and rung Board had reviewed the request on May 5th ;val. Ms. Goodrich emphasized that the hearing r the C-3 classification, not solely the assumed =_surrounding contexjtas consistent with commercial development, ng,(a gas station, and restaurants, all zoned C-3. She noted that East thoroughfare and that much of its corridor is already zoned C-1 or C-3. Plan identifies the subject properties as being within a Gateway and ch envisions "retail, office, restaurants, entertainment, and similar uses. s'tentwith�Future Land Use Plan policies promoting quality development Iteway and corridor areas. I e forward to speak in favor or against the request. The Public Hearing Mayor Elmore noted his intention, carried over from the prior work session, to ensure that the state examines the need for a turn lane in front of the subject property. Ms. Goodrich confirmed that the site plan would be reviewed by the Technical Review Committee, of which NCDOT is a member, providing the opportunity for that evaluation. Motion by Council Member Wesley Sills, seconded by Mayor Pro Tem Gaulden to adopt Option 1 and approve the Zoning Map Amendment to Highway Commercial (C-3) as presented, finding the request consistent with the Future Land Use Plan based on competent, material, and substantial evidence in the record. The motion carried unanimously. A copy of the Zoning Map Amendment (RZ-26-02) is incorporated into these minutes as Attachment N2. Consideration of Data Center Moratorium Public Hearine Mayor Elmore opened the Public Hearing at 6:43 p.m. and invited City Manager Justin Hembree to present. City Manager Hembree recapped the background, noting that the Council had received staff presentations on data centers at both the April Regular Meeting and the May Work Session, covering development options, the status of the Unified Development Ordinance (UDO) as it relates to data centers, and the general characteristics of the land use. Atthe May meeting, the Council directed staff to prepare a moratorium and advertise a Public Hearing for this meeting. City Manager Hembree explained that the proposed moratorium would impose a 180-day freeze on the permitting of data centers within the City of Dunn's entire planning jurriisdiction, including both the City limits and the extraterritorial jurisdiction (ETJ). The primary d,`rriver ofthe moratorium is that the UDO currently contains no definition of "data center" and therefore no applicable land use \, regulations or development standards. The moratorium wouldEprovide,staaff with the time needed to develop a text amendment, route it through the Planning,Board for recommendation, and bring it before the Council for final approval. He noted thatotheracommunit es have enacted similar moratoriums, and that the 180-day duration is short6ir than what many other jurisdictions have adopted. He expressed confidence that staff could rmeet the timeline and develop standards that balance economic development opportunities with protections for the community. No members of the public came forward to speak. The Public'Hearing was closed at 6:45 p.m. Decision The floor was opened for discussion. Council Member Sills spoke in opposition to\the moratorium, arguing,that it amounted to a signal of being "closed for business" to outside site selecto and! economic development prospects. He expressed concern that a.moratorium, even one limited to data; enters —could discourage a broader range of businesses fro con`sideri�g Dunn, as site selectors traveling the East Coast would simply move on upon seeingrsuch a restriction. He contended the UDO could be updated quickly by referencing ordinances already in place in nearby municipalities such as Sanford and Fayetteville and iu t.,��_ . Jf „ characterized the moratonum,as*�:a so(ution_in search of a problem driven by a national narrative that he believed ultimately disadvantaged --communities like Dunn from accessing significant tax revenue.$He o`hoted-that modern data centers have substantially improved their operational footprint, citing advances n,closed`-loop,cooling systems and noise reduction, and reiterated his view that the tax revenue generated b'data centers could meaningfully support City programs and Mayor Elmore expressed respect for those concerns but disagreed that a single -industry moratorium signals a City-wide closurefto development. He noted two (2) specific concerns. First, under the current UDO, a data ce te/r could potentially locate in a residential area, which he viewed as a significant risk warranting immediate attention. Second, he expressed concern that data centers — while generating a large tax base —employ relatively few workers and consume significant municipal resources, potentially crowding out other industrial prospects that offer greater employment benefits. Council Member Hargis offered a conciliatory view, agreeing with points raised on both sides. He acknowledged the concern about signaling but noted that 180 days is a relatively short window in the context of government operations, and that six (6) months is a practical and necessary period for staff to craft appropriate ordinance language. He emphasized that the goal was to ensure data centers, should they choose to come to Dunn, are placed in appropriate locations and subject to clear development standards —rather than arriving under an ordinance that had not been designed with them in mind. Motion by Council Member Tart second by Council Member Bradham to adopt the 180-day moratorium on the permitting of data centers within the City of Dunn's planning jurisdiction as presented. The motion carried, with one (1) opposing vote — Council Member Sills. A copy of the Ordinance Instituting a Temporary Moratorium on the Permitting of Data Centers (02026-09) is incorporated into these minutes as Attachment #3. REPORTS & UPDATES City Manager's Report Employee Picnic Recap City Manager Hembree reported on the employee picnic held the pri well -attended and well -received event. He noted that turnout excee event provided a valuable opportunity for employees from different d of the work environment. He recognized staff members Connie Ji organizing the event despite Connie being unable to attend due to community partners who made donations to the event: Kim's;'which Sherry's Bakery, and Bernie's, which each donated cakes..City-Ma ages to make the picnic an annual event. Council Member Hargis also recognized City involvement in preparing food for the event beg Public Information and Outreach City Manager Hembree provided an update o noting that while the incoming Downfown� responsibilities upon joining in July, staff had presence in the interim. Staff members Christy this initiative, which includes.weekly employ e City's Facebook page and•otherpltforms. City the increased activity: e Friday, describing it as a ;pectations and that the ents to interact outside i and Brian McNeill for He also acknowledged adside dishes; Carly C's, iee�expressed the intent personally for -his hands-on the City's public information and outreach efforts, irector would eventually assume many of these nactivejy llaunched is ore consistent social media w ney and,:Alex Abling were credited with leading potlights and regular project updates posted to the oager Hembree noted positive public response to FINANCIAL REPORT i Finance Director Cary McN la lan.presented-the Financial Report for the end of April, with the City ten months into tt abyear ag'ainst,a b ne ch`mark of-83.3%. Highlights included cash and investments of $13.5 million, comparre&to $7 6,millliion at the same point the prior year, with an additional $4.5 milli on(remaining in the East Side Pump Station Construction Account. Property Tax collections for the month of March totaled. $125 000'compared to $117,000 the prior year, with year-to-date collections of�$5.7 million. Sales Tax receipts for February were $301,000, representing a $44,000 increase over the same month last year, with year-to-date collections of $2.6 million, or 76% of budget. Buildih&Permit Revenues for April were $15,310, with year-to-date collections of $185,000, representing 101% ofthe Annual Budget, compared to $125,000 collected at the same point last year. No questions were raised y the Council. DEPARTMENTAL REPORTS & PROJECT UPDATES Code Enforcement Code Enforcement Officer Alan Canady presented two (2) cases, both from the West Divine Street area. The first involved a complaint regarding a resident operating a small engine repair business out of a residential property. The property ownerwas cooperative and came into compliance within thirty (30) days. Officer Canady noted the property would continue to be monitored, as the owner is permitted to work on his own equipment but not on equipment belonging to paying customers. The second case, at 1214 West Divine Street, involved a recently sold property where construction debris and trash had accumulated in the driveway without a permit. A compliance letter was issued, and the property has since been cleaned up. Officer Canady noted that staff are still working to contact the property owners to assess what unpermitted work may have been performed, and the case remains ongoing. Following the report, Council Member Sills inquired about the property at 402 North Orange Avenue raised during the Public Comment Period. Officer Canady confirmed that staff would follow up on the property, noting that while an active building permit would authorize a construction dumpster, overgrowth and open doors are separate concerns that staff would investigate and address. Mayor Elmore also acknowledged the collaborative process that resolved the stair repair situation for Mr. Matthews, crediting the resident, Commissioner McNeil, City Manager Hembree, and staff for working together effectively. ANNOUNCEMENTS Mayor Elmore made the following announcements: • The next Dunn City Council Work Session is scheduled for Tuesday, June 9, 2026, at 6:30 PM in Council Chambers., • The next Dunn City Council Regular Meeting is scheduled+for Tuesday,7une•23, 2026, also in Council Chambers. • The deadline for adopting the FY 2026-2027 Budget is Tuesday, June 30, 2026. " CLOSED SESSION�� Mayor Elmore announced that the Council would convene`i' losed session following the meeting for a consultation with the City's attorney. Council Member Sills moved that Pursr session to consult with its attorney in o Mayor Pro Tern Gaulden. Motion passed Members of the publicwere=dism issed prior to ADJOURNMENT' 1. A Motion was properly mad'e�andOconcled to Attest: Melissa R. Matti, City Clerk to G.S. 143-318.11(a)(3)-the Council go into closed to preserve_the attorn y client privilege, second by closed session at 7:10 p.m. the meeting. Motion carried unanimously. William P. Elmore Jr. Mayor CITY OF DUNN ® NORTH CAROLINA Ae--&C"OLAA4 Avihs! Work Session, June 9, 2026 Agenda Item(s): Medical Retirement of K9 Max Presenter(s): Chief of Police, Lynn Gay Responsible Staff: Chief of Police, Lynn Gay Action Item: Yes Attachment(s): 1) Retirement Resolution 2) Release and Hold Harmless Agreement K9 Max is a Belgian Malinois born on October 6, 2023. On June 24, 2024, the Dunn Police Department purchased K9 Max from Orchard Knoll K9 for $8,900 and assigned him to Officer Cody Chavis. In November 2025, Officer Chavis, noticed Max stumbling and unable to walk straight and took him to Triangle Veterinary Referral Hospital for emergency treatment. In April 2026, an indentation appeared on Max's head just behind his left eye and X-rays determined an MRI would be necessary. The May 6, 2026, MRI revealed that Max has either a malignant tumor or lymphoma located on the nerve running from his left eye toward his brain. On May 26, 2026, veterinarian Dr. Josh Warren advised Chief Gay and Deputy Chief Simmons that Max's tumor location is atypical and without treatment, would likely continue growing toward the brain stem, eventually causing death. Dr. Warren further opined that radiation therapy is available, but whether radiation would prolong Max's life beyond one year is uncertain. Additionally, during any radiation treatment, Max would be unable to work. Dr. Warren did not recommend euthanasia at this time but stated that Max could be medically retired and allowed to live with his handler for the remainder of Max's life. Upon the medical retirement of Max, Officer Chavis desires to assume ownership of Max and has signed a Release and Hold Harmless Agreement binding him to take full responsibility for the physical and financial welfare, upkeep, and medical care of MAX should the City Council so authorize. Page 1 of 2 Staff Recommendations) Staff recommends that K9 Max be medically retired, declared surplus property, and given to his handler Officer Cody Chavis. Budget Impact n/a Suggested Motion(s) Motion to adopt the attached resolution to medically retire the K9 Max, declare him surplus property, and give him to his handler Officer Cody Chavis. Page 2 of 2 CITY OF NN NORTH DUCAROLINA MEDICALLY RETIRING MAX A CANINE ASSIGNED TO THE DUNN POLICE DEPARTMENT WHEREAS, police canine MAX has faithfully served the Dunn Police Department since he was placed into service in June 2024 and upon adoption of this Resolution, will medically retire June 9, 2024; and WHEREAS, MAX, a specially trained Belgian Malinois has rendered a valuable service to the Dunn Police Department along with the community in which he served; and WHEREAS, MAX has performed his canine responsibilities as a professional police service K- 9 with the highest standards; and WHEREAS, MAX has been diagnosed with a terminal cancerous tumor near his brain and though limited treatment options are available, MAX would be unable to work and fulfill his duties while receiving treatment and even with such treatment, the treating veterinarian opines that there is no guarantee that such treatment would extend MAX's life beyond one additionalyear of either life or of service; and WHEREAS, should MAX be medically retired and declared surplus bythe City of Dunn, Officer Cody Chavis, handler for MAX, has agreed to assume full responsibility for the physical and financial welfare, upkeep, and medical care of MAX; and NOW, THEREFORE, BE RESOLVED that the City Council of the City of Dunn does now medically retire Canine MAX and in accordance with NCGS §160A-266(d), declares Canine MAX to be surplus property and transfers ownership of MAX to his assigned handler, Office Cody Chavis, who henceforth assumes full responsibility for the physical and financial welfare, upkeep, and medical care of MAX. Adopted this 9th day of June, 2026. William P. Elmore, Jr, Mayor Attest: Melissa Matti, City Clerk STATE OF NORTH CAROLINA COUNTY OF HARNETT RELEASEAND HOLD HARMLESS AGREEMENT H� This Release and Hold Harmless Agreement executed thisDay of June, 2026, by Cody Chavis, K9 officer with the Dunn Police Department, and City of Dunn, 401 E. Broad Street, Dunn, N.C., 28334 In consideration of a resolution by the Dunn City Council (1) declaring K9 Max as surplus property, (ii) medically retiring K9 Max due to a terminal illness, and (ill) transferring ownership of K9 Max to his handler Officer Cody Chavis of the Dunn Police Department, the said Cody Chavis does hereby accept receipt and- ownership of K9 Max AS -IS, without warranty of any kind express orimplied, and with full knowledge of K9 Max's terminal medical condition and in so doing, does fully and unconditionally release and forever hold harmless the City of Dunn, its elected officials, managers, and employees, including the Dunn Police Department, its Chief, and employees, from any and all past, present, or future claims, Losses, liabilities, demands, actions, causes of action or any other liability, whether in contract, tort, or otherwise arising out of the medical condition of K9 Max and does acknowledge that upon execution of this Release and Hold Harmless Agreement, the said Officer Cody Chavis will thereafter be solely responsible for the physical and financial welfare, upkeep, responsibility, and medical care of K9 Max. This Release and Hold Harmless Agreement is binding upon the parties, their heirs, personal representatives, successors, agents, and assigns. CITY OF DUNN Justin Hembree, City Manager ATTEST Melissa Matti, City Clerk Cody Chavis CITY OF DUNN ® NORTH CAROLINA Mee&c"wa# 4,6e 6ul Work Session, June 9, 2026 Agenda Item(s): Public Hearing- FY27 Recommended Budget Presenter(s): Justin Hembree, City Manager Cary McNallan, Finance Director Responsible Staff: Justin Hembree, City Manager Action Item: Yes Attachment(s): 1) Public Hearing Notice 2) Recommended FY27 Budget Ordinance 3) Budget Alternative— Property Tax Revaluation Background The City Council is required to hold a Public Hearing on the proposed FY27 recommended budget, which was submitted to the City Council on May 29, 2026, and published on the City's website. The Public Hearing notice was advertised on May 29, 2026, and promoted on the City's website. The budget message and proposed ordinance have been available on the website since the published date, and the complete document has been available for viewing in the City Clerk's office and in the Dunn Library. Staff Recommendation(s) Staff are recommending that the FY27 Recommended Budget be approved. Budget Impact The action of holding the Public Hearing has no budget impact. Suggested Motion(s) Open the Public Hearing and receive comments from the public regardingthe FY27 recommended budget. Page 1 of 1 City of Dunn NOTICE OF PUBLIC HEARING — FY 2027 BUDGET The proposed Fiscal Year 2026-2027 budget for the City of Dunn has been presented to the City Council and is available for public inspection on the City's website at cityofdunn.org/ inance, in the of ice of the City Clerk at the Dunn Municipal Building from 8:00 a.m. to 4:00 p.m. weekdays, and at the Dunn Library during normal business hours. The City Council will hold a public hearing on the proposed budget on June 9, 2026, at 6:30 p.m. in Council Chambers at the Dunn Municipal Building, 401 E. Broad Street, Dunn, NC, for the purpose of receiving comments pertaining to the budget. Persons wishing to be heard are invited to make written or oral comments. Melissa Matti City Clerk 910-230-3500 Advertise: May 29, 2026 Attachment A ANNUAL BUDGET ORDINANCE FY 2026-27 CITY OF DUNN, NORTH CAROLINA WHEREAS the recommended budget for FY 2026-27 was submitted to the City Council on May 29, 2026, by the City Manager pursuant to General Statutes (G.S.) 159-11 and filed with the City Clerk pursuant to G.S. 159-12; and WHEREAS, on June 9, 2026, the City Council held a public hearing on the budget pursuant to G.S. 159-12; and WHEREAS, on June 23, 2026, the City Council adopted a" budget ordinance making appropriations and levying taxes in such sums as the City Council considers sufficien_ t and d proper in accordance with G.S.159-13; \\\\\\ BE IT ORDAINED BY THE CITY COUNCIL OF � CITY OF DUNN, NORTH CAROLINA: Section 1. General Fund Revenu It is estimated that the rev year beginning Jul1, 2026, and the toll to June Permits for Services Earnings Other Operating Transfers Total General Fund Section 2. General Fund Expenditures 19 ajor sources,will be available during the fiscal to meet the -general fund expenditures. 6,819,552 \3,731,000 822,800 584,900 1,690,748 190,917 1,116,935 106,342 $ 15,063,194 City of Dunn, NC Recommended Annual Budget Fiscal Year 2027 Attachment A The following amounts are hereby appropriated by function for the operation of the City and its activities for the fiscal year beginning July 1, 2026, and ending June 30, 2027. General Government Mayor & Council $ 148,642 Administration 802.058- Tourism 152-,785 Finance �9 046 City Hall Facility 121,324 Non -Departmental < 537,532 Planning & Inspections 963,505 Public Safety Public Works Section 3. Levy of Taxes $ 3,134,892 6,051,030 1,693,408 127,880 6,106 800,793 $ 15,063,194 There is hereby levied the following rate of tax on each one hundred dollars ($100.00) valuation of taxable property, as listed for taxes as of January 1, 2026, for the purpose of raising the revenue constituting the general property taxes, as set forth in the foregoing estimates of revenue (Article I, Section 1); General Tax Rate per $100 Valuation of Taxable Property $0.60 FIX City of Dunn, NC Recommended Annual Budget Fiscal Year 2027 Attachment A Special Downtown Tax District Rate per $100 Valuation of Taxable Property $0.12 Motor Vehicle Tax Pursuant to provisions of General Statute 20-97 (bI) an annual motor vehicle tax in the amount of thirty dollars ($30) is hereby levied upon any vehicle resident in the City. ARTICLE II — WATER Section 1. Water Enterprise Fund Revenues It is estimated that the revenues from the following major -sources will,be available during the fiscal year beginning July 1, 2026, and ending June 30, 2027, to meet the water fund expenditures. Water Sales $ 5,026,0000 Penalties and Interest t \ Section 2. Water The Investment Earnings Other Total Water Reve: irise Fund Expen�r are`h� appropri ear beginning July 1 Water Treatment Plant Capital Projects Expenditures for the operation of the City and its June 30, 2027. $ 271,425 349,459 1,151,284 2,115,916 744,477 The following source amounts and appropriations are for the Water System Development Fee (WSDF) Fund for the fiscal year beginning July 1, 2026, and ending June 30, 2027. Water System Development Fees Investment Earnings Total Water SDF Revenues 21 City of Dunn, NC $ 49,500 500 $ 50,000 Recommended Annual Budget Fiscal Year 2027 Attachment A Water System Improvements $ 50,000 Total Water SDF Expenditures $ 50,000 ARTICLE III — SEWER FUND Section 1. Sewer Enterprise Fund Revenues It is estimated that the revenues from the following = year beginning July 1, 2026, and ending June 30, 2027, Sewer Sales Penalties and Interest Investment Earnings Other The 'follbwina amounts be available during the fiscal :r fund expenditures. 5,666,640 ated by function for the operation of the City and its 2026, and ending June 30, 2027. Treatment Plant $ 343,720 $ 360,127 $ 1,182,862 $ 2,347,957 Debt -Service $ 10,178,974 Total Sewer Expenditures $ 14,413,640 The following source amounts and appropriations are for the Sewer System Development Fee (SSDF) Fund for the fiscal year beginning July 1, 2026, and ending June 30, 2027. Sewer System Development Fees Investment Earnings 22 City of Dunn, NC $ 59,500 500 Recommended Annual Budget Fiscal Year 2027 Attachment A Total Sewer SDF Revenues $ 60,000 Sewer System Improvements $ 60,000 Total Sewer SDF Expenditures $ 60,000 ARTICLE IV — Section 1. Stormwater Enterprise Fund Revenues�L / It is estimated that the revenues from the following major sources will be available during the fiscal year beginning July 1, 2026, and ending June 30, 2027, to meet the �storm ate fun- d expenditures. Stormwater Sales $ / 723,885\\ Investment Ba^tttings / cnn i Total Stormwat er -Revenues $, 724 885 Section 2. Stormwater Enterprise Fund \ The following amounts are he appropriatcd by�functt m�for the or of the City and its activities for the fiscal amounts egimmng+July 1, 2026, and ending June 30, 2027. Stormwater Operations $ 162,278 Debt Service 89,026 Transfers to Ca ital Projects 85,000 Reserves �� zuu nui Total Stonnwater,Expenditures _$ 724385 — SPECIAL REVENUE FUND AND CAPITAL PROJECTS FUND Pursuant to G.S. 159-13.2, the City Council may authorize and budget for capital projects and special revenue funds in its annual budget or project ordinance. The project ordinance appropriates revenues and expenditures for however long it takes to complete the project rather than for a single fiscal year. Ad Valorem Tax Powell Bill Revenue Interest Earnings Oper Trf fr Gen Fund Total Special Revenue Sources 23 $ 481,276 350,500 15,000 195,000 $ 1,041,776 City of Dunn, NC Recommended Annual Budget Fiscal Year 2027 Attachment A Administration Powell Bill/Street Operations Capital Costs Debt Service Total Special Revenue SECTION VI — Charges for services and fees by City�Departments are lavi Miscellaneous Fees and Charges Schedule -(Attachment F Council. Section 1. The following authorities shall apply: $ 12,000 107,000 /342;523 580.253 \$ 1;041,776 amounts set forth'in the ordinance) as adopted by the City A. P_ursua`nt toVG.S. 159-15, this budget may`beamended by submission of proposed changes �to the City'Council except as noted,in�s section under paragraph C and F. B. The Flnance�Ditector is hereby designated Finance Officer and is authorized to make \\interfund loans fora period ofnot more than 60 days. The Finance Officer shall establish and,maintain accounting procedures which are in compliance with the Statutes of the State of North Carolina anhs authorized to approve and process budget amendments between expens` accounts, within departments, that do not change the total budget for that departmen\tt� / C. The City Manager shall be authorized to approve and process intrafund budget amendments 'up to $10,000, that do not change the adopted budget total for that fund, without further action by the City Council. D. The use of funds from the Reserve for Contingency requires prior approval from the City Council. E. Interfund transfers, established in the adopted budget document, may be accomplished without recourse to the Council. F. At the fiscal year end, all funds encumbered or, designated within fund balance for expenditures shall be re -appropriated to the next fiscal year's adopted budget without further action by the City Council. G. The Harnett County Tax Collector is authorized, empowered, and commanded to collect the taxes and stormwater fees set forth in the tax records filed in the office of the Harnett County Tax Assessor, and in the tax receipts herewith delivered to the Tax Collector, in 24 City of Dunn, NC Recommended Annual Budget Fiscal Year 2027 Attachment A the amounts and from the taxpayers likewise set forth. Such taxes are hereby declared to be a first lien upon all real property of the respective taxpayers in the County of Harnett. This section of the ordinance shall be a full and sufficient authority to direct, require, and enable the Harnett County Tax Collector to levy on, and sell any, real or personal property of such taxpayers, for and on account thereof, in accordance with law. SECTION VIII. - UTILIZATION OF BUDGET AND BUDGET ORDINANCE The Ordinance and the Budget Document shall be the basis of the financial plan for the Dunn Municipal Government during the 2026-27 fiscal year. The City,Manager shall administer the budget and shall ensure that the operating facilities are provided with guidance and sufficient details to implement their appropriate portion of the budget. (� SECTION IX. - `DI, ST_RIBUTI Ih accordance with G.S. 159-13, copt copies Ordinance shall be provided to the City Clerk City Manager, and Finance Director to behepfon file by them for their direction in the disbursement of funds. \ \�`'O° .N'a Adopted this 231 Mayor Attest: Melissa R. Matti City Clerk P. Elmore, Jr. The budget ordinance, and all additional amendments, are available in the office of the City Clerk, Dunn Municipal Building, 401 East Broad St, Dunn, North Carolina, 28334. Justin B. Hembree City Manager 25 City of Dunn, NC Recommended Annual Budget Fiscal Year 2027 CITY OF NDTUNN Agz&_ onu bvurs! BUDGET ALTERNATIVE — PROPERTY TAX REVALUATION As noted, Harnett County recently conducted a revaluation of all real property throughout the County, including property located within the City of Dunn. The last revaluation of real property occurred in 2022. The North Carolina State Senate recently passed a bill (SB889) that would postpone any tax revaluations in the State for this year. SB889 is currently in the State House Rules Committee. City staff expect the bill will be passed by the House in the coming weeks and expects it to become law before June 30, 2026. If this occurs, the City of Dunn would not receive the additional tax revenues that are anticipated from the property tax revaluation. Therefore, the recommended budget is presented as though SB889 will become law. With this in mind, the University of North Carolina School of Government recommends that staff present an alternative budget ordinance that could be adopted in the event that SB889 does not become law. Based on this recommendation, the enclosed budget ordinance (Attachment A2) is presented for information purposes. State law requires units of local governments to publish a revenue -neutral tax rate as part of the budget process following the completion of a revaluation of real property. The purpose of the revenue -neutral tax rate is to provide residents with comparative information. The revenue -neutral tax rate as set forth in the NCGS 159-1I(e) is the rate that is estimated to produce revenues for the next fiscal year as if no revaluation had occurred. The rate is then adjusted by a growth factor equal to the average annual percentage increase in the tax base due to improvements or new construction since the last general reappraisal. The revenue -neutral tax rate suggests taxes paid will be the same as in the previous year. However, taxes paid may vary by individual taxpayer based on the fair market value assessed on real property in the countywide reappraisal and the amount of personal property owned. Because real property is required to be revalued at least every eight years, and personal property is revalued annually, the reappraisal of real property re -equalizes real and personal property values. The revaluation also re -equalizes the tax burden where some owners of real property may pay more, or less, following a revaluation. The revaluation produced a property tax base value as of January 1, 2026 of $1,602,812,930 for Dunn. Using the formula mandated by State law, the revenue -neutral tax rate for Dunn is 40.09 cents per $100 compared to the existing tax rate of 54.00 cents, of which 4.00 cents is dedicated to street paving. Both rates produce annual tax revenues of $6,425,023. The growth factor over the past four years since the last general reappraisal is 2.00% for an adjusted revenue neutral tax rate adjusted for growth of 40.89 cents. The updated property tax base values will produce total revenues for real property and personal property taxes of $8,655,190 for the City, of which Page 1 of 2 $641,125 is dedicated to the street paving fund. If SB889 does not become law and given that Dunn has not increased its real property tax rate for the essential governmental operations since FY2014, it is recommended that the overall tax rate remain steady at 54.00 cents. The revaluation of real property also affects the City's downtown properties that have an additional "downtown tax". The revaluation of downtown properties produced a property tax base value on January I, 2026 of $50,714,120. Using the formula mandated by State law, the revenue -neutral tax rate for downtown Dunn is 10.12 cents per $100 compared to the existing tax rate of 12.00 cents. Both rates produce annual tax revenues of $51,337. The growth factor over the past four years since the last general revaluation is 1.10% for an adjusted revenue neutral tax rate adjusted for growth of 10.23 cents. The updated property tax base values will produce total revenues for real property and personal properly taxes of $60,857 for the city. It is recommended that the overall tax rate remain steady at 12.00 cents. If SB889 does not become law it is recommended that the downtown tax rate remain steady at 12.00 cents. Page 2 of 2 Attachment A2 ANNUAL BUDGET ORDINANCE FY 2026-27 CITY OF DUNN, NORTH CAROLINA WHEREAS the recommended budget for FY 2026-27 was submitted to the City Council on May 29, 2026, by the City Manager pursuant to General Statutes (G.S.) 159-I 1 and filed with the City Clerk pursuant to G.S. 159-12; and WHEREAS, on June 9, 2026, the City Council held a public hearing on the budget pursuant to G.S. 159-12;and WHEREAS, on June 23, 2026, the City Council adopted a and levying taxes in such sums as the City Council consi( with G.S. 159-13; BE IT ORDAINED BY THE CITY CAROLINA: Section]. General Fund Revenues It is estimated that the revenues from the year beginning July 1;*2026-and ending J Ad I — Tax OF THE $ 7,723,600 3,631,000 822,800 i-Permits 582,800 -s for Services 1,690,748 ment Eariungs 165,917 1,112,883 ting Transfers 106,342 General Fund $ 15,836,090 Section 2. General Fund Expenditures ice making appropriations and proper in accordance OF DUNN, NORTH available during the fiscal fund expenditures. The following amounts are hereby appropriated by function for the operation of the City and its activities for the fiscal year beginning July 1, 2026, and ending June 30, 2027. 1 General Government Mayor & Council Administration Tourism Finance City Hall Facility Non -Departmental Planning & Inspections Public Safety Public Works Public Works Sanitation Parks, Recreation, & Cem Dunn Senior Center Library Debt Service Total General Fun' d \ Section 3. Levy of Taxes There is hereby I taxable property, constituting the € Section 1): Tax Rate per Motor Vehicle Tax Pursuant to provis on thirty dollars ($30) is following rate of t;. for taxes\as of Jai merty taxes, as set of Taxable Prouettvi$0.12 $ 174,241 823,958 154,733 437,518 121,437 866,876 980,820 $ 3,559,583 6,197,319 3,369,073 $ 15,836,090 Attachment A2 ;hone hundred dollars ($100.00) valuation of ,026, f6r the purpose of raising the revenue the foregoing estimates of revenue (Article I, tatute 20-97 (b1) an annual motor vehicle tax in the amount of upon any vehicle resident in the City. ARTICLE H — WATER FUND Section 1. Water Enterprise Fund Revenues It is estimated that the revenues from the following major sources will be available during the fiscal year beginning July 1, 2026, and ending June 30, 2027, to meet the water fund expenditures. +] Water Sales Penalties and Interest Investment Earnings Other Total Water Revenues Section 2. Water Enterprise Fund Expenditures The following amounts are hereby appropriated by function activities for the fiscal year beginning July 1, 2026, and endin€ Administration Finance Services Operations Water Treatment Plant < Debt Service Transfers to Capital Projects Total Water Expenditures The following source amounts and appropriatic (WSDF) Fund for the fiscal y arbeginning�July, 1, Section 1. Sewer Attachment A2 $ 5,026,000 20,000 55,000 165,546 $ 5,266,546 operation of the City and its , 2027. y 35J,323 1,144,811 2,124 6 744,477 theNWater System Development Fee ending June 30, 2027. $ 49,500 500 $ 50,000 $ 50,000 $ 50,000 III — SEWER FUND It is estimated that the revenues from the following major sources will be available during the fiscal year beginning July 1, 2026, and ending June 30, 2027, to meet the sewer fund expenditures. Sewer Sales 5,666,640 Penalties and Interest 36,000 Investment Earnings 78,000 Other 7,000 Installment Financing 8,626,000 Total Sewer Revenues $14,413,640 Section 2. Sewer Enterprise Fund Expenditures 3 Attach ment A2 The following amounts are hereby appropriated by function for the operation of the City and its activities for the fiscal year beginning July 1, 2026, and ending June 30, 2027. Administration Finance Services Operations Waste Water Treatment Plant Debt Service Total Sewer Expenditures The following source amounts and appropriations are (SSDF) Fund for the fiscal year beginning July 1, 2026, a Section L It is estimated that the year beginning July I, Section 2. The following amouri activities for the fiscal Sewer System Deve Investment Earnings Total Sewer SDF I Sewer Syster Total Sewer I Expenditures $ 353,516 $ 362,116 $ 1,162,713 $ 2,356,321 $ 10,178,974 System Development Fee 30, 2027. sources will be available during the fiscal meet the stormwater fund expenditures. $ 723,885 500 $ 724,385 appropriated by function for the operation of the City and its g July 1, 2026, and ending June 30, 2027. Stormwater Operations $ 159,804 Debt Service 89,026 Transfers to Capital Projects 85,000 Reserves 390,555 Total StormwaterExpenditures S 724,385 4 Attachment A2 ARTICLE V — SPECIAL REVENUE FUND AND CAPITAL PROJECTS FUND Pursuant to G.S..159-13.2, the City Council may authorize and budget for capital projects and special revenue funds in its annual budget or project ordinance. The project ordinance appropriates revenues and expenditures for however long it takes to complete the project rather than for a single fiscal year. Ad Valorem Tax $. 612,300 Powell Bill Revenue 350,500 Interest Earnings 15,000 Oper Trf fr Gen Fund 195,000 Total Special Revenue Sources $1 112,800 Administration $ 12,000 Powell Bill/Street Operations 107,000 Capital Costs 580,547 253 Debt Service � 58Q253 Total Special Revenue Expenditures $1,172,800 Charges for services Section L The following authdi ties shall apply: CHARGES are levied in the amounts set forth in the F to this ordinance) as adopted by the City AUTHORITIES A. Pursuarit�".S f159115, this budget may be amended by submission of proposed changes to the City Council, except as noted in this section under paragraph C and F. B. The Finance Dircc(or is hereby designated Finance Officer and is authorized to make interfund loans for a period of not more than 60 days. The Finance Officer shall establish and maintain accounting procedures which are in compliance with the Statutes of the State of North Carolina and is authorized to approve and process budget amendments between expense accounts, within departments, that do not change the total budget for that department. C. The City Manager shall be authorized to approve and process intrafund budget amendments, up to $10,000, that do not change the adopted budget total for that fund, without further action by the City Council. D. The use of funds from the Reserve for Contingency requires prior approval from the City Council. E. Interfund transfers, established in the adopted budget document, may be accomplished without recourse to the Council. AttachmentA2 F, At the fiscal year end, all funds encumbered or designated within fund balance for expenditures shall be re -appropriated to the next fiscal year's adopted budget without further action by the City Council. G. The Harnett County Tax Collector is authorized, empowered, and commanded to collect the taxes and stormwater fees set forth in the tax records filed in the office of the Harnett County Tax Assessor, and in the tax receipts herewith delivered to the Tax Collector, in the amounts and from the taxpayers likewise set forth. Such taxes are hereby declared to be a first lien upon all real property of the respective taxpayers in the County of Harnett. This section of the ordinance shall be a full and sufficient authority to direct, require, and enable the Harnett County Tax Collector to levyton, and sell any, real or personal property of such taxpayers, for and on account thereof, iaccordance with law. SECTION VIII. - UTILIZATION OF BUDGET AND The Ordinance and the Budget Document shall be' the basis of the Municipal Government during the 2026-27 McaNyear. The City 1 budget and shall ensure that the operating facilities,a e•provided w>ith F to implement their appropriate portion.of the budget In accordance with G Manager, and Finance funds. Melissa R. Matti City Clerk kept be ORDINANCE plan for the Dunn fall administer the id.sufficient details to the City Clerk, City in the disbursement of William P. Elmore, Jr. Mayor The budget ordinance, and all additional amendments, are available in the office of the City Clerk, Dunn Municipal Building, 401 East Broad St, Dunn, North Carolina, 28334. Justin B. Hembree City Manager CITY OF DUNN ® NORTH CAROLINA Wl:e� co-..~A4 k64bw! Work Session, June 9, 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. Cotton Gin Demolition Page 1 of 1 CITY OF DUNN ® NORTH CAROLINA G�/�iercconunwu� /.e�uu/ Announcements: • The next Regular Session of the Dunn City Council is scheduled for Tuesday, June 23rd at 6:30 p.m. • The next Work Session of the Dunn City Council is scheduled for Tuesday, August 11th at 6:30 p.m. • Deadline for adopting FY 26-27 Budget is Tuesday, June 301h VL