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HomeMy WebLinkAboutAgenda 06-23-2026 RegularCITY OF NORTH CITY COUNCIL REGULAR MEETING 6:30pm, Tuesday, June 23, 2026 Dunn Municipal Building 401 East Broad Street Dunn, North Carolina 28334 -AGENDA- CERTIFICATION OF QUORUM & CALL TO ORDER— William P. Elmore, Jr., Mayor INVOCATION— Kelly Clarke, Administrator of Gospel Tabernacle Church PLEDGE OFALLEGIANCE — Dr. David Bradham, Council Member CONSIDERATION & APPROVAL OF THE AGENDA PRESENTATIONS 1. Proclamation Honoring the 2501" Anniversary of the United States of America 2. Proclamation Honoring Sherrill Allen Pope 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. 3. Approval of June 9, 2026 Work Session Minutes 4. Budget Amendment — Various Operating Accounts 5. Capital Project Ordinance Amendment I — 2023 Paving Project 6. Capital Project Ordinance Amendment I — Champion Pump Station Conversion Project ITEMS FOR DISCUSSION & POSSIBLE ACTION 7. Consider Master Services Agreement for On -Call Professional Services 8. Governing Body Resolution — Interlocal Agreement for A Group Self -Insurance Pool for Workers' Compensation Risk Sharing 9. FY27 Budget Update Page 1 of 2 CITY OF DUNN ® NORTH CAROLINA REPORTS & UPDATES 10. City Manager's Report 11. Financial Report 12. Departmental Reports & Project Updates a. Code Enforcement b. Police 13. Announcements 14. Important Information CLOSED SESSION If called, the motion to enter closed session must cite the North Carolina General Statute that authorizes the closed session. ADJOURNMENT The City of Dunn is an equal opportunity provider and employer. Page 2 of 2 CITE` �r r DUNN ,88, NORTH CAROLINA Gdhiereeo IdItA ,6eginsi greoehmardikia HONORING THE 250TH ANNIVERSARY OF THE UNITED STATE OF AMERICA WHEREAS, the year 2026 marks the 250th anniversary of the founding of the United States of America, commemorating the adoption of the Declaration of Independence on July 4, 1776, and the birth of a nation dedicated to the principles of liberty, equality, self-government, and the pursuit of opportunity; and WHEREAS, for two and half centuries, the United States has endured and prospered through the courage, sacrifice, innovation, and civic engagement of generations of Americans who have worked to preserve and strengthen our democratic institution; and WHEREAS, the Semiquincentennial provides an opportunity for Americans to reflect upon our nation's history, honor the contributions of those who came before us, recognize the progress that has been achieved, and renew our commitment to the ideals upon which our country was founded; and WHEREAS, the citizens of Dunn have contributed to the strength and vitality of our nation through military service, public service, volunteerism, entrepreneurship, education, stewardship of our natural resources, and active participation in civic life; and WHEREAS, this historic milestone invites all residents to learn more about our nation's history, celebrate our shared heritage, and inspire future generations to embrace the responsibilities and privileges of citizenship; and WHEREAS, throughout 2026, communities across the nation will participate in commemorative events, educational programs, service projects, and celebrations recognizing America's 250-year journey; NOW, THEREFORE, I,William P. Elmore, Jr., Mayor of the City of Dunn, do hereby recognize and commemorate the 250th Anniversary of the United States of America and encourage all residents to observe this historic occasion by reflecting on our nation's history, honoring those who have served and sacrificed for our freedom, and participating in activities that celebrate the enduring ideals of liberty, democracy, and civic responsibility. This the 23rd day of June, 2026 William P. Elmore, Jr. Mayor ATTEST: Melissa R. Matti City Clerk ?(}mere communi y I Jim! • 1ss7 HONORING SHERRILL ALLEN POPE WHEREAS, Sherrill Allen Pope, a lifelong member of the Dunn Community, was born in 1926, the 150th anniversary of the signing of the United States of America Declaration of Independence; and WHEREAS, Mr. Pope will celebrate his 100th birthday on July 4, 2026; and WHEREAS, Mr. Pope began his service to our Country by serving in the North Carolina National Guard and was drafted into the United State Army in 1944; and WHEREAS, Mr. Pope served honorably for two years as a Combat Engineer in the European Theater during the Second World War in General George S. Patton's Third Army; and WHEREAS, after the War, Mr. Pope married Ms. Annie Lois Neighbors in 1947; and WHEREAS, Mr. and Mrs. Pope were married for 58 years until Mrs. Pope's death in 2005; and WHEREAS, Mr. Pope is the proud father of eight children, seven sons and one daughter; and WHEREAS, in 1955, Mr. Pope was ordained as a minister with the Pentecostal Denomination, headquartered in Falcon, North Carolina; and WHEREAS, to provide for his young family, Mr. Pope worked at the local Coca-Cola bottling plant, served as a minister, and worked at a local flea market; and WHEREAS, Mr. Pope also served as Chaplin for Dunn Emergency Services where he comforted both first responders and impacted citizens after traumatic events; and WHEREAS, after 30 years of service, Mr. Pope retired from Coca-Cola in 1988; and WHEREAS, the City of Dunn wishes to honor Mr. Pope on the occasion of his 100th birthday for his service to our country and our community. NOW, THEREFORE, BE IT HEREBY PROCLAIMED that the City of Dunn hereby honors Sherrill Allen Pope as a pillar of the Dunn community for his exemplary, devout, and patriotic life well lived and its positive impact on others. Proclaimed this the 23rd day of June, 2026. William P. Elmore, Jr., Mayor ATTEST: Melissa M. Matti, City Clerk CtTv nF "'DUNN 1w NORTH CAROLINA G�e,ea.n� 6eyi`ts/ Regular Meeting, June 23, 2026 Agenda Item(s): Approval of June 9, 2026 Work Session Minutes Presenter(s): Melissa Matti, City Clerk Responsible Staff: Melissa Matti, City Clerk Action Item: Yes Attachment(s): 1) Background None Budget Impact None June 9, 2026 Work Session Minutes Staff Recommendation(s) Approval of Minutes as presented. Suggested Motion(s) Motion to approve June 9, 2026 Work Session Minutes as presented. Page 1 of 1 Dunn City Council Work Session Tuesday, June 9, 2026 6:30 p.m. Dunn Municipal Building Minutes PRESENT: Mayor William P. Elmore Jr., Council Members J. Wesley Sills, Raquel McNeil, Alan Hargis, and Dr. David L. Bradham. ABSENT: Mayor Pro Tem April Gaulden and Council Member Billy N. Tart. ALSO PRESENT: City Manager Justin Hembree, Assistant City Manager Billy R. Godwin, Finance Director, Cary McNallan, Police Chief Lynn Gay, Senior Planner Stephanie Goodrich, HR Director Connie Jernigan, Code Enforcement Officer Alan Canady, Administrative Support Specialist Christy Sweeney, CityAttorney Wiley Pope and City Clerk Melissa Matti. CALL TO ORDER Mayor William P. Elmore, Jr. called the City Council Work Session to order at 6:30 PM on Tuesday, June 9, 2026, at the Dunn Municipal Building, 401 East Broad Street, Dunn, North Carolina. Mayor Elmore welcomed those in attendance, including a member of the press (Emily Weaver), and acknowledged two (2) absent Council Members, noting that a quorum was nonetheless present. INVOCATION & PLEDGE OF ALLEGIANCE The invocation was led by Council Member Dr. David Bradham, who also led the Pledge of Allegiance. CONSIDERATION & APPROVAL OF THE AGENDA Motion by Council Member Sills, seconded by Council Member Hargis to approve the agenda as presented. The motion carried unanimously. PRESENTATIONS Juneteenth Proclamation Mayor Elmore introduced Council Member Raquel McNeil, Chairperson of the Dunn Juneteenth Celebration Committee, who read the official proclamation aloud on behalf of the Mayor. The Proclamation recognized June 19th, 2026 as Juneteenth in the City of Dunn, acknowledging the holiday's historical significance in marking the abolition of slavery in the United States, and commended its observance to all residents. Following the reading, Ms. McNeil announced that the annual Juneteenth Celebration would be held on Sunday, June 21 st, in the lot adjacent to City Hall on Broad Street. The event will feature vendors, food trucks, and youth entertainment from Davis Chapel. Four (4) community members are to be honored: Mr. Joseph Smith (Flowers by Riverside), Mr. Shepherd Massey (education honoree), Mr. Corey Williams and Mr. Reese Cameron (humanitarian honoree from a local barbershop). The City Managerwas noted as this year's welcome speaker. The Mayor encouraged all residents to attend. A copy of the Juneteenth Proclamation (P2026-12) is incorporated into these minutes as Attachment #1 CONSENTAGENDA The Consent Agenda included one (1) item: • Approval of May 26, 2026 Regular Meeting Minutes Motion by Council Member Bradham and seconded by Council Member Hargis to approve the May 26, 2026 Regular Meeting Minutes. The motion carried unanimously. ITEMS FOR DISCUSSION & CALENDARING FOR JUNE 23, 2026 Medical Retirement of K9 Max Chief of Police Gay presented the matter of K9 Max, a police canine who has been diagnosed with an inoperable brain tumor. Chief Gay explained that after evaluating all available options, the recommended course of action was a medical retirement, allowing K9 Max to live out his remaining time with his handler, Officer Cody Chavis, at his farm. The City Manager added that the dog is currently not in pain or suffering but is no longer fit for active duty. Chief Gay noted that Officer Chavis fully understands and accepts the terms of the medical retirement, including a hold harmless release, and intends to pursue natural remedies to maintain the dog's quality of life. The handler does not seek any future recourse from the City. Chief Gay also confirmed that the City's insurance carrier had been consulted and that no insurance claim would be applicable in this situation. On a positive note, Chief Gay informed the Council that a previously approved grant is being used to procure a replacement canine. Since the department's handler is already trained, onboarding the new dog is expected to be a smooth process. Council Member Bradham inquired about the appropriate number of canines for a City of Dunn's size; Chief Gay indicated that two (2) dogs —one (1) for day shift and one (1) for night shift —would be ideal and expressed hope to work toward that staffing level over time. Council Member Hargis raised the question of canine life insurance for future animals, and Chief Gay confirmed this was worth exploring going forward. Motion by Council Member Hargis and seconded by Council Member Bradham to adopt the attached resolution to medically retire K9 Max, declare him surplus property, and transfer ownership to his handler, Officer Cody Chavis. The motion carried unanimously. A copy of the Retirement Resolution (R2026-14) is incorporated into these minutes as Attachment #2. Public Hearin FY27 Recommended Budget Mayor Elmore opened the advertised Public Hearing on the FY27 Recommended Budget at 6:43 p.m. No members of the public came forward to speak, and the Public Hearing was closed at 6:44 p.m. The City Manager presented a significant update regarding the status of the Recommended Budget. He explained that the Budget had been developed under the assumption that Senate Bill 889—the Property Revaluation Moratorium Bill —would become law and therefore was built around the existing schedule of values rather than Harnett County's new revaluation figures. The City Manager reported that SB 889 had passed through the House State and Local Government Committee and the Rules Committee that same day, received a favorable vote on second reading before the full House, and was expected to pass its final reading the following day. However, a significant complication emerged. A separate bill, Senate Bill 474, was amended and moved through the same legislative process on the same day. This bill would exempt certain categories of counties from the moratorium —including counties under 12,000 in population, counties impacted by Hurricane Helene (effectively Buncombe County), and counties under 150,000 in population. Harnett County falls into that last category, meaning that if SB 474 also becomes law, the City of Dunn could be subject to the new schedule of values rather than the moratorium. The City Manager noted that the sponsors of both bills are largely the same, suggesting the two (2) pieces of legislation may have been developed in coordination. Given this uncertainty, the City Manager recommended against adopting any budget before the legislative picture clarifies. He noted that the North Carolina School of Government had recently published guidance advising Local Governments in affected counties to wait as long as possible into June before adopting a budget. He indicated that the situation should be much clearer by the end of the week, potentially as soon as the following day. Council Member Hargis asked whether the Council could simply affirm a spending level and allow the tax rate to adjust accordingly, rather than revisiting the entire budget. The City Manager acknowledged that while the philosophical conversation about spending priorities is valid, State Statute requires that a governing bodyformally adopt a specific Tax Rate based on an established schedule of values at the time of Budget adoption, making it necessary to know which schedule applies before a Budget can be legally adopted. The City Manager recommended that the full Council remain on standby for a potential Special Called Budget Workshop Meeting. With a 48-hour notice requirement for special meetings, he proposed waiting until at least the end of the week to assess the legislative outcome before scheduling that meeting. The goal would be to hold a workshop to revisit priorities and revenue figures under whichever schedule of values applies, with the intention of bringing the Final Budget to a vote at the regular June 23rd Council Meeting. The Budget adoption deadline of June 30th was noted. No motion was required on this item. REPORTS & UPDATES City Manager's Report Cotton Gin Demolition The City Manager reported that three (3) bids had been received for demolition of the Cotton Gin structure and were being evaluated. He indicated that workwas expected to begin within approximately three (3) to four (4) weeks, once the selected contractor is mobilized. He emphasized that the project also includes grading and seeding the lot following demolition to ensure the area is left in clean, presentable condition. He acknowledged the demolition has been long -anticipated and noted the building presents structural liability concerns in its current state. Additional Discussion: West Broad Street Paving Council Member Bradham asked for an update on paving conditions along West Broad Street, particularly in the area near Kim's Barbecue, which he described as the worst - traveled street in the City. The City Manager reported that a survey of the area had just been completed, with two (2) primary goals: to determine the City's right-of-way boundaries (noting that pavement responsibility had historically crept beyond what the City should be maintaining) and to assess the placement of utility poles with a view toward potentially adding a lane to accommodate delivery truck traffic without fully blocking the street. Staff planned to meet with Public Works personnel the following morning and would subsequently consult with the paving contractor to determine the best approach, including whether curb and gutter work should be incorporated for a more permanent solution. Council Member Hargis raised a separate concern about abandoned utility poles throughout the City. He described a pattern where Duke Energy had installed new, taller poles and consolidated equipment from old poles onto them, but the old, shortened poles had not been removed, leaving double poles on many blocks. He requested that staff identify the responsible utility companies and follow up to have the unused poles removed. The City Manager agreed to investigate the matter. Council Member Wes Sills inquired about the status of the stormwater project in the Westover area. The City Manager confirmed that final grant funding approval had been received, a project number had been established with the funding agency, and engineering and construction drawings were being finalized. He stated that the project should be underway before Council Member Sills' term expires, though he acknowledged he could not confirm completion within that timeframe. ANNOUNCEMENTS Mayor Elmore provided the following announcements: • The next Regular City Council Meeting is scheduled for Tuesday, June 23, 2026, at 6:30 PM. • The next Work Session is scheduled for Tuesday, August 11, 2026, at 6:30 PM. No work session will be held in July. • The Budget Adoption deadline is Tuesday, June 30, 2026. The Council anticipates receiving further guidance from the City Manager before the end of the week. • The Dunn Juneteenth Celebration will be held on Sunday, June 21, 2026, adjacent to City Hall on Broad Street. The Mayor encouraged all residents to attend. CLOSED SESSION Mayor Elmore announced that the Council would convene in closed session following the meeting for a consultation with the City's attorney. Motion by Council Member Hargis and seconded by Council Member Sills to enter closed session pursuant to G.S. 143-318.11(a)(3) to consult with the City Attorney in order to preserve the attorney -client privilege. The motion carried unanimously. Members pf the public were dismissed prior to the closed session at 7:10 p-in . ADJOURNMENT A Motion was properly made and seconded to adjourn the meeting. Motion carried unanimously. William P. Elmore, Jr. Mayor ATTEST: Melissa R. Matti, CMC, NCC City Clerk CITY OF � DUNN NUkI H C:AROUNA GdAere co"Zpn wu% ,6ey"',sl Regular Meeting, June 23, 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. Shift $16,500 of Capital Outlay Budget from the Non -Departmental Budget to the City Hall Capital Outlay Budget to cover the replacement of an HVAC system. 2. Appropriate $30,919 of prior year Seized Asset Funds to the Police Department for Eligible Drug Enforcement Expenditures. Staff Recommendation(s) Staff are recommending that these Budget Amendments be approved. Budget Impact The overall Budget for the General Fund will increase by $30,919. Suggested Motions) Motion to approve the attached Budget Amendments for the General Fund. Page 1 of 1 1 1 2 2 2 2 2 2 CITY OF DUNN BUDGET ORDINANCE AMENDMENT Department: Various Budget Amendment #: 34 FISCAL YEAR ENDING: 6/30/2026 Date: 6/23/2026 FUND Acct # LINE ITEM DESCRIPTION Appropriation Before Amendment Amount of Amendment Increase / (Decrease) Appropriation After Amendment General 010-0450-7400 Capital Outlay $ 5,550.00 $ 16,500.00 $ 22,050.00 General 010-0500-7400 Capital Outlay 133,088.41 (16,500.00) 116,588.41 General 010-0510-1400 Travel and Training 28,587.00 4,308.00 32,895.00 General 010-0510-4500 Contract Services 131,535.00 7,920.00 139,455.00 General 010-0510-5200 K9 Expense 7,250.00 4,083.00 11,333.00 General 010-0510-7000 Non -Capital Equipment 30,000.00 1,170.00 31,170.00 General 010-0510-7400 Capital Outlay 53,980.00 13,438.00 67,418.00 EXPENDITURE TOTAL: $ 389,990.41 $ 30,919.00 $ 420,909.41 Appropriation Amount of Appropriation FUND Acct # LINE ITEM DESCRIPTION Before Amendment After Amendment Increase / (Decrease) Amendment General 010-0368-2001 Fund Balance Appropriation $ 847,453.85 $ 30,919.00 $ 878,372.85 REVENUE TOTAL: $ 847,453.85 $ 30,919.00 $ 878,372.85 CERTIFICATION: I certify this requested budget amendment was approved by the City Council on: City Manager: 6/23/2026 Finance Director: 6/23/2026 JUSTIFICATION: 1.Shift $16,500 of capital outlay budget from the Non -Departmental budget to the City Hall capital outlay budget to cover the replacement of an HVAC system. 2. Appropriate prior year drug seizure funds to fund eligible expenses. FUNDING SOURCE: Shifting of expenditure line item budgets and fund balance appropriations. CITY OF ruld DUNN 1W NORTH LAROLINA WAe.�C'O-At� 6 d4"Si Regular Meeting, June 23, 2026 Agenda Item(s): Capital Project Ordinance Amendment I - 2023 Paving Project Presenter(s): Cary McNallan, Finance Director Responsible Staff: Billy Godwin, Assistant City Manager Action Item: Yes Attachment(s): 1) Capital Project Ordinance Amendment 1 2) Budget Amendment Background The 2023 Paving Project was approved by the City Council in September 2022. The project included City-wide street resurfacing and improvements to the Friendly Road area. The project budget was $2,100,000 and included $100,000 of funding from the Stormwater Fund Reserves, Installment Financing of $1,000,000, DMV License Fee Revenue of $455,000, and Powell Bill Funds of $545,000. The project has been completed, and the final cost of the project was $2,034,013. Additional Stormwater Funds of $76,929 are to be transferred to the project to cover stormwater related expenses which will leave a balance of $142,916 to be returned to the Street Resurfacing 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 $142,916 will be returned to the Street Resurfacing Fund. Suggested Motions) Motion to approve the attached Capital Project Ordinance Budget Amendment for the 2023 Paving Project. Page 1 of 1 1887 Capital Project Ordinance Amendment I 2023 Paving 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 9, 2021, approved a contract with SEPI Inc. to conduct a City-wide Street Pavement Condition Study; and, WHEREAS, the City Council, on November 15, 2021, approved a City-wide Pavement Implementation Plan presented by SEPI Inc.; and, WHEREAS, the City Council, on September 13, 2022, approved a loan with Truist Bank for $1,000,000 to partially fund the City-wide Pavement Project; and, WHEREAS, the City Council, on February 7, 2023, approved a Capital Project Ordinance authorizing the above -mentioned project for a total budget amount of $2,100,000; 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 2023 Paving 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 approved as follows: Funding Appropriations Installment Financing Powell Bill Funds DMV License Fees Stormwater Funds Total Funding Expenditures: Previous Budget Revised Budget Amendments Budget $1,000,000 $1,000,000 $ 545,000 $ 545,000 $ 455,000 $ 455,000 $ 100,000 $ 76,929 $ 176,929 $ 2,100,000 $ 76,929 $ 2,176,929 Administration $ - $ 58 $ 58 Engineering $ 150,000 $ (92,670) $ 57,330 Construction $1,950,000 $ 26,625 $1,976,625 Transfers to Street Resurfacing Fund $ - $ 142,916 $ 142,916 Total Expenditures $ 2,100,000 $ 76,929 $ 2,176,929 Vtiere communi� hTinr! 1887 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 23rd day of June 2026. Attest: Melissa R. Matti City Clerk William P. Elmore, Jr. Mayor Wkere communif 6Tinsf CITY OF DUNN BUDGET ORDINANCE AMENDMENT Department: Various Budget Amendment #: 36 FISCAL YEAR ENDING: 6/30/2026 Date: 6/23/2026 FUND Acct # LINE ITEM DESCRIPTION Appropriation Before Amendment Amount of Amendment Increase / (Decrease) Appropriation After Amendment 2023 Paving Proj 100-0910-0001 Administration - 58.00 $ 58.00 2023 Paving Proj 100-0910-4000 Engineering 150,000.00 (92,670.00) 57,330.00 2023 Paving Proj 100-0910-7600 Construction 1,950,000.00 26,624.72 1,976,624.72 2023 Paving Proj 100-0910-8541 Oper Transfers to Street Resurfacing Fund - 142,916.28 142,916.28 Street Resurfacing 041-0841-7300 Paving and Resurfacing 1,270,000.00 142,916.28 1,412,916.28 Stormwater 031-0831-8510 Oper Trfs to Capital Projects - 76,929.00 76,929.00 Stormwater 031-0831-5800 Reserve for Contingency 162,388.00 (76,929.00) 85,459.00 EXPENDITURE TOTAL: $ 3,532,388.00 $ 219,845.28 $ 3,752,233.28 Appropriation Amount of Appropriation FUND Acct # LINE ITEM DESCRIPTION Before Amendment After Amendment Increase / (Decrease) Amendment Street Resurfacing 041-0369-0100 Oper Transfers from Fund 100 - $ 142,916.28 $ 142,916.28 2023 Paving Proj 100-0399-1431 Oper Transfers from Stormwater Fund $ 100,000.00 $ 76,929.00 $ 176,929.00 REVENUE TOTAL: $ 100,000.00 $ 219,845.28 $ 319,845.28 CERTIFICATION: I certify this requested budget amendment was approved by the City Council on: City Manager: 6/23/2026 Finance Director: 6/23/2026 JUSTIFICATION: Close out the 2023 Paving Project and return funds to the Street Resurfacing Fund. FUNDING SOURCE: Operating transfer from the capital project to the Street Resurfacing Fund and addtl funding from the Stormwater Fund. CITY OF Mill 1�w DUNN NORTH CAROLINA GdAerecsAtm� /Vc`cs/ Regular Meeting, June 23, 2026 Agenda Item(s): Capital Project Ordinance Amendment I - Champion Pump Station Conversion Project Presenter(s): Cary McNallan, Finance Director Responsible Staff: Billy Cottle, Water & Sewer Collections & Distribution Director Action Item: Yes Attachment(s): 1) Capital Project Ordinance Amendment 1 2) Budget Amendment Background The Champion Pump Station Conversion Project was approved by the City Council in September 2023. The project included the conversion of a Sewer Pump Station to gravity flow. The project budget was $452,100 and included $52,100 of funding from the Sewer Fund Reserves and Installment Financing of $400,000. The project has been completed, and the final cost of the project was $449,011 leaving a balance of $3,089 to be returned to the Sewer 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 $3,089 will be returned to the Sewer Fund Reserves. Suggested Motion(s) Motion to approve the attached Capital Project Ordinance Budget Amendment for the Champion Pump Station Conversion Project. Page 1 of 1 1887 i � 1 � 4 • � 1 Capital Project Ordinance Amendment I Convert Champion Pump Station to Gravity Flow WHEREAS, the City Council for the City of Dunn, on June 13, 2023, adopted the Annual Budget Ordinance Number 02023-13 for the fiscal year beginning July 1, 2023; and, WHEREAS, the City Council, on June 13, 2023, adopted the Capital Improvements Plan for fiscal year 2023-24; and, WHEREAS, on September 12, 2023, the City Council approved a Capital Project Ordinance authorizing the above -mentioned project for a total budget amount of $452,100; and, WHEREAS, it is necessary to amend this Capital Project to adjust the Final Budget amounts needed to complete and close 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: Engineering and construction services for the conversion of the Champion Pump Station to Gravity Flow 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 engineering are approved as follows: Funding Appropriations Sewer Funds Installment Financing Total Funding Expenditures: Engineering Construction Contingency Transfers to Sewer Fund Total Expenditures Previous Budget $ 52,100 $ 400,000 Budget Amendments Revised Budget $ 52,100 $ 400,000 $ 452,100 $ - $ 452,100 $ 67,200 $ (5,344) $ 61,856 $ 334,500 $ 52,655 $ 387,155 $ 50,400 $ (50,400) $ - $ - $ 3,089 $ 3,089 $ 452,100 $ - $ 452,100 Section 3: Funds may be advanced from the Water and Sewer Fund for the purpose of making payments as due. V6ere communi� tiTins! 88% 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 23rd day of June 2026. Attest: Melissa R. Matti City Clerk William P. Elmore, Jr. Mayor Wkere communi� kTins! CITY OF DUNN BUDGET ORDINANCE AMENDMENT Department: Various Budget Amendment #: 35 FISCAL YEAR ENDING: 6/30/2026 Date: 6/23/2026 FUND Acct # LINE ITEM DESCRIPTION Appropriation Before Amendment Amount of Amendment Increase / (Decrease) Appropriation After Amendment Champion PS Proj 083-0930-4000 Engineering 67,200.00 (5,344.00) $ 617856.00 Champion PS Proj 083-0930-7600 Construction 334,500.00 52,654.62 387,154.62 Champion PS Proj 083-0930-0002 Contingency 50,400.00 (50,400.00) - Champion PS Proj 083-0930-8530 Oper Transfers to Sewer Fund - 3,089.38 3,089.38 EXPENDITURE TOTAL: $ 452,100.00 $ - $ 452,100.00 Appropriation Amount of Appropriation FUND Acct # LINE ITEM DESCRIPTION Before Amendment After Amendment Increase / (Decrease) Amendment Sewer 030-0369-0083 Oper Trfs fr Fund 83 - $ 3,089.38 $ 3,089.38 Sewer 030-0390-4000 Fund Balance Appropriation $ 489,098.00 $ (3,089.38) $ 486.008.62 REVENUE TOTAL: $ 4$9,U9B.UU $ - $ 469,U`.i2S.UU CERTIFICATION: I certify this requested budget amendment was approved by the City Council on: City Manager: 6/23/2026 Finance Director: 6/23/2026 JUSTIFICATION: Close out the Champion Pump Station Project and return funds to the Sewer Fund reserves. FUNDING SOURCE: Operating transfer from the capital project to the Sewer Fund. CITY CIF 1p im DUNN NORTH CAROLINA GdAueco.n"n4U4 feg1;cs1 Regular Meeting, June 23, 2026 Agenda Item(s): Consider Master Services Agreement for On -Call Professional Services Presenter(s): Justin Hembree, City Manager Responsible Staff: Justin Hembree, City Manager Billy Godwin, Assistant City Manager Alexander Abling, Special Projects Manager Action Item: Yes Attachment(s): 1) On Call Master Services Agreement Background The City is engaged in activities and services which from time to time require a broad range of professional services including but not limited to design, preparation of feasibility studies, preliminary engineering reports, grant writing, land use planning, cost estimating, surveying, mapping, and other professional services. N.C.G.S. 143-64.31 requires that municipalities announce all requirements for architectural, engineering, and surveying services, and select firms qualified on the basis of demonstrated competence and qualifications. A Request for Qualifications for Professional Services was posted on April 20th, 2026. A total of thirteen (13) firms submitted qualification statements on May 29th, 2026. These firms would be available to respond to on -call task orders as assigned. Staff is recommending that eight (8) firms be selected to receive a Master Services Agreement. Budget Impact None Page 1 of 2 Staff Recommendation(s) Authorize the City Manager to enter into a Master Services Agreement for On -Call Professional Services for a period of three (3) years with an option of three (3), one (1)-year extensions with the following: 1. Freese and Nichols, 2. McGill Associates, 3. WithersRavenel, 4. KCI Associates of NC, 5. ECLS Global, 6. Davis -Martin -Powell, 7. Kimley-Horn, and 8. LKC Engineering Suggested Motion(s) Motion to authorize the City Manager to enter into a Master Services Agreement for On -Call Professional Services for a period of three (3) years with an option of three (3), one (1)-year extensions as recommended. Page 2 of 2 City of Dunn, NC Request for Qualifications (RFQ) 2026 APPENDIX A CITY OF DUNN, NORTH CAROLINA MASTER SERVICE AGREEMENT FOR ON -CALL PROFESSIONAL GENERAL ENGINEERING SERVICES THIS AGREEMENT ("Master Service Agreement" or "MSA") is made and entered into as of the day of 2026, by the City of Dunn ("City") and ("Consultant"), organized and existing under the laws of the State of North Carolina. WHEREAS, the City desires to engage the Consultant to provide On -Call Environmental, Transportation, Utility, and General Engineering Professional Services related to municipal general engineering, construction, and inspections as set forth in and in accordance with Supplemental Service Agreements ("SSA"); and WHEREAS, the City issued a Request for Qualifications for On -Call General Engineering Services dated Monday, April 20th, 2026; and WHEREAS, Consultant provides professional consulting services and has expertise, staff, and resources to perform such services; NOW, THEREFORE, City and Consultant, in consideration of mutual covenants, herein agree as follows: SECTION I. BACKGROUND & PURPOSE The purpose of the City's on -call process is to secure more than one general engineering professional to provide professional on -call engineering services. The purpose of this Agreement is to provide the basic terms and conditions by which Consultant will provide its services to the City, as the need for services may arise, and in accordance with the standards and requirements as described herein, and in each SSA. SECTION II. SERVICES & SCOPE TO BE PERFORMED The Consultant shall perform on -call services as set forth in this MSA and future SSA(s) and the sufficiency of funding. No services shall commence on a particular project until an SSA has been executed by both parties, and the City has issued a Notice -to -Proceed to Consultant. Any amendments, corrections, or change orders by either party must be made in writing and signed in the same matter as the original. The City reserves the right to refuse payment for any work outside that authorized herein or pursuant to a duly approved amendment or change order. Services to be provided shall be set forth in an SSA and amendments to that Page 1 of 11 City of Dunn, NC Request for Qualifications (RFQ) 2026 agreement. The SSA may also include additional terms and conditions regarding payment and other matters necessary for the execution of projects. SSAs shall not vary the terms of this Agreement, except where this Agreement authorizes such variance, and shall be interpreted consistently with this Agreement. If there is a conflict between this Agreement and SSAs, this Agreement shall control. The City has no obligation to provide services with any work hereunder and does not guarantee the issuance of any minimum number of SSAs under this Agreement. Consultant represents and agrees that now and continuing for the term of this Agreement, Consultant: • Is experienced, qualified, skilled, and fully capable of performing services in a competent and professional manner; and • Shall exercise reasonable care and diligence, and shall act in the best interest of City; and • Shall act in accordance with general accepted standards of Consultant's practice applicable to the locality; and • Shall comply with this Agreement, applicable SSAs, and with all applicable federal, state, and local laws, ordinances, codes, rules, and regulations (collectively "Laws and Regulations"); and • Possesses all necessary qualifications, licenses, and certifications; and • Shall perform in a timely manner and in accordance with scheduled required under this Agreement or an applicable SSA, time being of the essence; and • Shall work in good faith with City to meet requirements imposed by the federal or state government or other funding agencies if grants are used to fund any portion of projects; and • The individual(s) signing Agreement has the right and power to do so and bind Consultant to the obligations set forth herein and such individual(s) does so personally warrant that they have such authority. SECTION III. AGREEMENT DURATION The agreement shall authorize SSAs to be executed for a three year period from the date of execution of this Agreement. Any SSA executed within period of execution of this Agreement shall be binding for period set forth therein, and this Agreement and such SSAs, and amendments to such agreements, shall be binding for the time period set forth in the SSA. Any SSA executed within this three-year period may be amended for additional scope, fee, or time. This Agreement may be extended by three (3) one (1) year periods upon written agreement from both parties. Each one-year extension period must be agreed upon separately and cannot be combined in the same extension agreement. Page 2 of 11 City of Dunn, NC Request for Qualifications (RFQ) 2026 Services shall commence upon execution of SSAs describing the specific project and services to be performed. A written Notice -to -Proceed following execution of such SSA(s) will be issued to the Consultant. Consultant will not commence services until such notice is received. SECTION IV. COMPLETE WORK WITHOUT EXTRA COST Unless otherwise provided, the Consultant shall obtain and provide, without additional cost to the City, all labor, materials, equipment, transportation, facilities, services, permits, and licenses necessary to perform the services. SECTION V. COMPENSATION The terms of payment for services provided by Consultant shall be set forth in each SSA. Such agreement may provide for compensation in accordance with an hourly rate schedule, or set fee for services, paid one time or in periodic payments, or a combination of these methods of compensation. Unless otherwise provided in the SSA, Consultant shall obtain and provide, without additional cost to the City, all labor, materials, equipment, transportation, facilities, services, permits, and licenses necessary to perform services under this Agreement. In addition to hourly rates or the set fee payment set forth in the SSA, City shall pay Consultant for expenses and costs only when reimbursement for such items is specifically provided for in an SSA. The City shall not be obligated to pay any expenses and costs not specifically identified in an SSA. SECTION VI. CONSULTANT BILLING TO CITY The Consultant shall submit an invoice once service is complete or at designated times during the course of completing service. Once the invoice is submitted and approved by the appropriate City department the terms will be net 30 days. The terms may only be changed by written consent of the City's Finance Director. SECTION VII. INSURANCE Consultant shall maintain insurance policies at all times with limits as follows: Coverage Workers' Compensation Employers' Liability Accident General Liability Automobile Liability Auto Professional Liability (E&O) Minimum Limits Statutory Limits $1,000,000 Each $2,000,000 Each Occurrence $1,000,000 Combined Single Limit —Any Page 3 of 11 $2,000,000 Each Occurrence City of Dunn, NC Request for Qualifications (RFQ) 2026 Consultant shall provide the City with certificates of insurance for review prior to the issuance of any contract or purchase order. All certificates of insurance will require thirty days written notice by the insurer or consultant's agent in the event of cancellation, reduction or other modifications of coverage. In addition to this notice requirement, Consultant shall provide the City with immediate written notice of cancellation, reduction, or other modification of insurance coverage. Upon failure of the Consultant to provide such notice, Consultant assumes sole responsibility for all losses incurred by the City for which insurance would have provided coverage. Insurance certificates shall be for the initial contract period of one year and shall be renewed by the Consultant for each subsequent renewal period of the contract. The City of Dunn shall be listed as certificate holder and named as an additional insured under General Liability Policy. It is required that coverage be placed with "A" rated insurance companies acceptable to the City. Consultant's insurance shall be primary of any self -funding and/or insurance otherwise carried by the City for all loss and damages arising from the Consultant's operations under this agreement. The Consultant and each of its subconsultants/subcontractors shall and does waive all rights of subrogation against the City and each of the indemnitees. Failure to maintain the required insurance in force may be cause for contract termination. In the event that the Consultant fails to maintain and keep in force the insurance herein required, the City has the right to cancel and terminate this Agreement without notice. SECTION VIII. PERFORMANCE OF WORK BY CITY If the Consultant fails to perform the services in accordance to Section II above, the City may, at its discretion, in order to bring the project closer to schedule, perform or cause to be performed some or all of the services, and doing so shall not waive any of the City's rights and remedies. Before doing so, the City shall give the Consultant reasonable notice of its intention. The Consultant shall reimburse the City for all costs incurred by the City in exercising its right to perform or cause to be performed some or all of the services pursuant to this section. SECTION IX. ATTACHMENTS The following attachments are made a part of this Agreement and incorporated herein by reference: Attachment A: Scope of Work Attachment B: Hourly Rate Attachment C: Title VI Appendment SECTION X. NOTICE All notices and other communications required or permitted by this contract shall be in writing and shall be given either by personal delivery, email, or certified United States mail, return receipt requested, addressed as follows: Page 4 of 11 City of Dunn, NC Request for Qualifications (RFQ) 2026 To the City: To the Consultant: City of Dunn Firm Name Alexander Abling, Special Projects Manager Contact Person, Title PO Box 1065 Mailing Address Dunn, NC 28335 City, State, Zip Code 910-230-3500 Telephone Number cabling@dunn-nc.org Email Address Page 5 of 11 City of Dunn, NC Request for Qualifications (RFQ) 2026 A change of address, phone number, email address, or person to receive notice may be made by either party by notice given to the other party. Any notice or other communication under this contract shall be deemed given at the time of actual delivery, if it is personally delivered or sent by email. If the notice or other communication is sent by United States mail, it shall be deemed given upon the tenth calendar day following the day on which such notice or other communication is deposited with the United States Postal Service or upon actual delivery, whichever occurs first. SECTION XI. INDEMNIFICATION To the extent permitted by law, the Consultant agrees to pay on behalf of, indemnify, and hold -harmless the City of Dunn, its elected and appointed officials, employees, agents, and volunteers against any and all claims, demands, fault, actual liabilities, assertions of liability, expenses, suits, or losses, including all costs connected therewith, which may be asserted, claimed, or recovered against or from the City of Dunn, its elected or appointed officials, employees, agents, and volunteers by reason of personal injury, including bodily injury or death and/or property damage, including loss of use thereof resulting from the negligence of the Consultant. SECTION XII. ADDITIONAL PROVISIONS (a) Choice of Law and Forum: This Agreement shall be deemed made in Harnett County, North Carolina. This Agreement shall be governed by and construed in accordance with the law of North Carolina. The exclusive forum and venue for all actions arising out of this contract shall be the appropriate division of the North Carolina General Court of Justice, in Harnett County. Such actions shall neither be commenced in nor removed to federal court. This section shall not apply to subsequent actions to enforce a judgment entered in actions heard pursuant to this section. (b) Waiver: No action or failure to act by the City shall constitute a waiver of any of its rights or remedies that arise out of this Agreement, nor shall such action or failure to act constitute approval of or acquiescence in a breach thereunder, except as may be specifically agreed in writing. (C) Performance of Government Functions: Nothing contained in this contract shall be deemed or construed so as to in any way stop, limit, or impair the City from exercising or performing any regulatory, policing, legislative, governmental, or other powers or functions. Page 6 of 11 City of Dunn, NC Request for Qualifications (RFQ) 2026 (d) Severability: If any provision of this contract shall be unenforceable, the remainder of this contract shall be enforceable to the extent permitted by law. (e) Assignment, Successors and Assigns: Without the City's written consent, the Consultant shall not assign (which includes to delegate) any of its rights (including the right to payment) or duties that arise out this Agreement. Unless the City otherwise agrees in writing, the Consultant and all assigns shall be subject to all of the City's defenses and shall be liable for all of the Consultant's duties that arise out of this contract and all of the City's claims that arise out of this contract. Without granting the Consultant the right to assign, it is agreed that the duties of the Consultant that arise out of this contract shall be binding upon it and its heirs, personal representatives, successors, and assigns. (f) Compliance with Law: In performing all of the Work, the Consultant shall comply with all applicable law. (g) City Policy: The City opposes discrimination on the basis of race and sex and urges all of its contractors to provide fair opportunity for minorities and women to participate in their workforce and as subconsultants and vendors under City contracts. (h) EEO Provisions: During the performance of this Agreement the Consultant agrees as follows: (1) The Consultant shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, political affiliation or belief, age, or handicap. The Consultant shall take affirmative action to ensure that applicants are employed and that employees are treated equally during employment, without regard to race, color, religion, sex, national origin, political affiliation or belief, age, or handicap. The Consultant shall post in conspicuous places available to employees and applicants for employment, notices setting forth these EEO provisions. (2) The Consultant in all solicitations or advertisements for employees placed by or on behalf of the Consultant, state all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, political affiliation or belief, age, or handicap. Page 7 of 11 City of Dunn, NC Request for Qualifications (RFQ) 2026 (i) No Third Party Right Created: This contract is intended for the benefit of the City and the Consultant and not any other person. (j) Principles of Interpretation: In this contract, unless the context requires otherwise: The singular includes the plural and the plural the singular. The pronouns "it" and "its" include the masculine and feminine. Reference to statutes or regulations include all statutory or regulatory provisions consolidating, amending, or replacing the statute or regulation. References to contracts and agreements shall be deemed to include all amendments to them. The word "person" includes natural persons, firms, companies, associations, partnerships, trusts, corporations, governmental agencies and units, and any other legal entities. (k) Modifications, Entire Agreement: A modification of this contract is not valid unless signed by both parties and otherwise in accordance with requirements of law. Further, a modification is not enforceable against the City unless the City Manager or other duly authorized official signs it for the City. This contract contains the entire agreement between the parties pertaining to the subject matter of this contract. With respect to that subject matter, there are no promises, agreements, conditions, inducements, warranties, or understandings, written or oral, expressed or implied, between the parties, other than as set forth or referenced in this contract. (1) E-Verify: Consultant shall comply with the requirements of Article 2 of Chapter 64 of the NC General Statutes. Further, if Consultant utilizes a subconsultant, Consultant shall require the Subconsultant to comply with the requirements of Article 2 of Chapter 64 of the NC General Statutes. (m) Iran Divestment Act: Consultant certifies that; (i) it is not identified on the Final Divestment List or any other list of prohibited investments created by the NC State Treasurer pursuant to N.C.G.S. 143-6A-4; (ii) it will not take any action causing it to appear on any such list during the term of this Contract, and (iii) it will not utilize any subcontractor to provide goods or services hereunder that is identified on any list. (n) Divestment from Companies that Boycott Israel: Consultant represents, covenants, and certifies that it is not listed on the list of restricted companies developed and published by the North Carolina State Treasurer as required by N.C.G.S. 147-86.81. (o) Quality and Workmanship: All work performed and/or services rendered shall be performed to the satisfaction of the City of Dunn. The work performed and/or services rendered shall not be considered complete, nor applicable payments Page 8 of 11 City of Dunn, NC Request for Qualifications (RFQ) 2026 rendered, until the City is satisfied with the work performed and/or services rendered. (p) Standard Terms and Conditions: The City of Dunn's Standard Terms and Conditions will govern all matters related to the goods and/or services provided by you or your company (the "Vendor") to the City of Dunn (the "City"). Additional terms and conditions stated on the face of a City purchase order shall take precedence over any conflicting standard terms and conditions stated. Any terms and conditions not stated, but incorporated by reference therein, shall be binding only if provided or signed by the City and attached hereto. In the event that a binding written contract signed by both the Consultant and the City exists, the Terms and Conditions of that contract shall supersede any conflicting standard terms and conditions. (q) Non -appropriation clause: Consultant acknowledges that the City of Dunn is a governmental entity, and the contract validity is based upon the availability of public funding under the authority of its statutory mandate. In the event that public funds are unavailable and not appropriated for the performance of the City of Dunn's obligations under this contract, then this contract shall automatically expire without penalty to the City of Dunn thirty (30) days after written notice to Consultant of the unavailability and non -appropriation of public funds. It is expressly agreed that the City of Dunn shall not activate this non -appropriation provision for its convenience or to circumvent the requirements of this contract, but only as an emergency fiscal measure during a substantial fiscal crisis, which affects generally its governmental operations. In the event of a change in the City of Dunn's statutory authority, mandate and mandated functions, by state and federal legislative or regulatory action, which adversely affects the City of Dunn's authority to continue its obligations under this contract, then this contract shall automatically terminate without penalty to the City of Dunn Forest upon written notice to Consultant of such limitation or change in the City of Dunn's legal authority. (r) No pledge of taxing authority: The taxing power of the City of Dunn is not pledged directly or indirectly to secure any monies due underthis contract. (s) No waiver of governmental immunity; violation of law: Except for waiver of governmental immunity resulting from the execution of a valid contract, the City of Dunn makes no other waiver of governmental immunity. If any provision of this Agreement is in violation of any legal, statutory or state constitutional prohibition, then such provision(s) shall be unenforceable against the City of Dunn. (t) Conflict of Interest: If this is a contract for design, engineering, contract administration or similar services, the Consultant will not enter into contracts or agreements with third parties that may present a potential for conflict of interest between the City of Dunn and the third parties regarding the subject Page 9 of 11 City of Dunn, NC Request for Qualifications (RFQ) 2026 matter of this Agreement. (u) Public Record: This Contract or Agreement is subject to disclosure under the public records laws of the State of North Carolina. (v) Contractor shall provide proof that a Drug -Free Workplace Program is in place and that drivers meet DOT/CDL licensing requirements, if requested. SECTION XIII. TERMINATION Either party may terminate this Agreement upon 60 day written notice; provided, however, no such termination shall discharge Consultant's obligations to complete and furnish services as previously agreed to by the parties pursuant to this Agreement or any Supplemental Service Agreement, nor shall termination discharge the City's obligations to pay for such services as provided for in this Agreement or any Supplemental Service Agreement. [SIGNATURE PAGE FOLLOWS] Page 10 of 11 City of Dunn, NC Request for Qualifications (RFQ) 2026 IN WITNESS WHEREOF, the City of Dunn and FIRM NAME have caused this Agreement to be executed undersea[ bytheir respective duly authorized agents or officers. CITY OF DUNN: Justin B. Hembree, City Manager Attest: Melissa R. Matti, City Clerk FIRM NAME: Name, Title Attest: Name, Title Page 11 of 11 CITY OF rill 1W DUNN NORTH CAROLINA W/zereceAvx1,u4 6ey4s'.s1 Regular Meeting, June 23, 2026 Agenda Item(s): Governing Body Resolution with Interlocal Agreement for A Group Self -Insurance Pool for Workers' Compensation Risk Sharing Presenter(s): Justin Hembree, City Manager Responsible Staff: Connie Jernigan, Human Resources Director Action Item: Yes Attachment(s): 1) Governing Body Resolution 2) Interlocal Agreement for A Group Self -Insurance Pool for Workers' Compensation Risk Sharing Background The City's insurance for Worker's Compensation (WC) is on an annual renewal. For several years, Key Risk Management has served as the City's WC carrier. This year, the City requested a proposal from both Key Risk and the North Carolina League of Municipalities (NCLM). Our WC broker also provided a proposal from another carrier, National Liability & Fire. Costs for the plan are as follows: NCLM $135,398 National Liability & Fire $140,401 Key Risk $152,725 Staff Recommendation(s) Based on cost savings and reference checks, staff recommends acceptance of NCLM's coverage proposal. Budget Impact $135,398.77 for FY 26-27 Suggested Motion(s) Motion to approve both the attached resolution and interlocal agreement to allow NCLM FY26-27 coverage for Workers' Compensation insurance. Page 1 of 1 Governing Body Resolution of the City of Dunn WHEREAS, certain municipalities and other units of local government of the State of North Carolina, as defined in G.S. 160A-460(2), have agreed to create the NORTH CAROLINA INTERLOCAL RISK MANAGEMENT AGENCY and have agreed to pool the risks of their workers' compensation liabilities and payment of claims for employers' liability coverage pursuant to, and to be governed by, the provisions of North Carolina General Statutes 160A-460 et seq. (Part 1 of Article 20 of Chapter 160A); NOW, THEREFORE, BE IT RESOLVED that the above named unit of local government elects to become a member of the NORTH CAROLINA INTERLOCAL RISK MANAGEMENT AGENCY upon the terms and conditions stated in the "Interlocal Agreement for a Group Self -Insurance Pool For Workers' Compensation Risk Sharing," with such future policy renewals constituting a continuing ratification of this decision to be a member of the Agency and to abide by the terms and conditions of the Interlocal Agreement. NOW, THEREFORE, BE IT FURTHER RESOLVED that the duly authorized officials of the above named unit of local government are directed to execute in the name of said unit the "Interlocal Agreement for a Group Self -Insurance Pool for Workers' Compensation Risk Sharing," a copy of which is attached to and made a part of this Resolution. I certify that this is a true and correct copy of this Resolution, duly adopted by the governing body on the 23rd day of June, 2026, as it appears of record in its official minutes. ATTEST: City of Dunn William P. Elmore, Jr., Mayor Melissa R. Matti, City Clerk (SEAL) INTERLOCAL AGREEMENT FOR A GROUP SELF-INSURANCE POOL FOR WORKERS' COMPENSATION RISK SHARING This Agreement, made and entered into in duplicate originals this 23rd day of June, 2026, by and between all the parties who are now, or may hereafter become, members of the North Carolina Interlocal Risk Management Agency (hereinafter "Agency"): WITNESSETH: WHEREAS, certain municipalities and other units of local government of the State of North Carolina have agreed to create the Agency and have agreed to pool the risk of their workers' compensation liabilities and payment of claims for employers' liability coverage pursuant to, and to be governed by, the provisions of North Carolina General Statutes 160A-460 et seq. (Part 1 of Article 20 of Chapter 160A); and WHEREAS, the members of the Agency have agreed upon designation of a Board of Trustees to direct the affairs of the Agency, to adopt rules, regulations, policies, and bylaws for implementing and administering the Agency, and to pass upon the admissibility of future members of the Agency; and WHEREAS, the members have designated the North Carolina League of Municipalities as Administrator of the Agency, subject to the provisions of this Agreement and the policies adopted by the Trustees, and; WHEREAS, by this Agreement the Agency will undertake to discharge, solely from the assets of this Agency, by payment, any lawful workers' compensation and employers' liability claims against any member of the Agency, which awards shall have been sustained by final judgment where suit shall have been filed, or by the rules of the Agency if settlement is made before suit is filed; and WHEREAS, the members of the Agency agree to pay premiums and/or contributions based upon appropriate classifications, rates, and experience modifications, and other criteria established by the Trustees, out of a portion of which the Agency will establish and maintain a fund for the payment of workers' compensation and employers' liability claims and awards and further, that the members covenant and agree that there will be no disbursements out of this fund by way of dividends or distribution of accumulated reserves to the respective members, except at the discretion of the Trustees; and WHEREAS, the members of the Agency, through the action of their respective governing bodies have elected to comply with the conditions of this Agreement; NOW, THEREFORE, for and in consideration of the mutual covenants, promises, and obligations herein contained, which are given to and accepted by each member hereof to the other, the parties hereto agree as follows: SECTION I. PURPOSE OF AGREEMENT; COMPOSITION OF BOARD OF TRUSTEES NCIRMA 2026 The purpose of the Agency established by the signatories hereto is to allow members to pool the risk of their workers' compensation liabilities and payment of claims for employers' liability coverage. To this end, the Agency shall be governed by a Board of Trustees made up of eleven (11) officials or employees of units of local government. Trustees shall be appointed for three (3) year overlapping terms by the Board of Directors of the North Carolina League of Municipalities and shall serve no more than two consecutive terms. No individual shall serve concurrently on the Board of Trustees and the League's Board of Directors. In addition, the Executive Director of the North Carolina League of Municipalities shall serve as an ex-officio, nonvoting member of the Board of Trustees: the ex-officio position shall not have a committee assignment, nor shall the position serve as an officer of the Board of Trustees. II. TRUSTEES' POWERS, DUTIES, LIABILITY, AND INDEMNITY The Trustees shall have the following powers and duties, in addition to those set forth elsewhere in this Agreement: 1. To establish guidelines for membership in the Agency; 2. To establish the terms and conditions of coverage, including underwriting criteria and exclusions from coverage; 3. To ensure that all valid claims are promptly paid; 4. To establish, operate, and enforce rules, regulations, policies, and bylaws as between the individual members of the Agency and the Agency; 5. To enter into agreements with such persons, firms, or corporations as it deems appropriate to adjust claims; promote membership in the Agency; provide actuarial and underwriting services; defend against claims and lawsuits; provide accounting services; obtain excess insurance or reinsurance coverage, if available, designed to protect the Agency against excess losses; invest the assets of the Agency; provide loss control and other risk management services for the Agency and member units; maintain records and accounts; and provide any other service necessary or desirable for the sound operation of the Agency; 6. To lease or rent real and personal property it deems to be necessary; 7. To borrow or raise monies for the purpose of the Agency to the extent that the Trustees shall deem desirable upon such terms and conditions as the Trustees in their absolute discretion may deem desirable or proper, and for any sum so borrowed to issue their promissory note as Trustees and to secure the repayment thereof by pledging all or any part of the pool; and no person or entity lending money to the Trustees shall be bound to see to the application of the money lent or to inquire into the validity, expediency, or propriety of any such borrowing; 8. To rate individually any member unit with rates different from the group rates when the loss experience of the unit warrants such individual rating, in the discretion of the Trustees; NCIRMA 2026 2 9. To take measures to maintain claim reserves equal to known incurred losses and loss adjustment expenses and to maintain an estimate of incurred but not reported losses; and 10. To take all necessary precautions to safeguard the assets of the Agency. The Trustees shall use ordinary care and reasonable diligence in the exercise of their powers and in the performance of their duties hereunder. The members agree that the Trustees shall not be liable for any mistake of judgment or other action made, taken, or omitted by any employee, agent, contractor, subcontractor, or independent contractor selected with ordinary care and reasonable diligence; nor for loss incurred through investment of Agency money or failure to invest. No Trustee shall be liable for any action taken or omitted by any other Trustee. The Trustees shall not be required to give a bond or other security to guarantee the faithful performance of their duties hereunder. The members of the Agency agree that, for the payment of any claim against the Agency or the performance of any obligation of the pool hereunder, resort shall be had solely to the assets of the Agency, and neither the Trustee nor the Administrator shall be liable therefore. Further, the Agency shall indemnify and hold harmless the Trustees against any and all claims, suits, actions, debts, damages, costs, charges, and expenses (including but not limited to court costs and attorneys' fees) and against all liability, losses, and damages of any nature whatever, that the Trustees shall or may at any time sustain, or be put to, by reason of the exercise of their power and in the performance of their duties hereunder, or by reason of any mistake of judgment or other action made, taken, or omitted by any employee, agent, contractor, subcontractor, or independent contractor, or for loss incurred through investment of Agency money or failure to invest. SECTION III. PAYMENT OF CLAIM The members of the Agency agree that, for the payment of any workers' compensation or employers' liability claim against the Agency or the performance of any obligation arising hereunder, resort shall be had solely to the assets of the Agency, and neither the Trustees nor the Administrator shall be liable therefore. Accordingly, lawful claims will be paid from the assets of the Agency pursuant to the types and levels of coverage established by the Board of Trustees. The Board of Trustees shall establish a schedule of types and monetary levels of coverage-S for which the Agency shall be responsible on behalf of its members, including provisions for levels of coverage for which the members shall be individually responsible. Such types and levels of coverage may vary according to population classifications of members, mutual agreement of the Agency and a member, or such other criteria as may be established by the Board of Trustees. The types and level of coverage for each member shall be shown on a Coverage Document provided to each member. The Agency shall pay all claims (less the applicable deductible) for which each member incurs liability during each member's period of membership except where a member has individually retained the risk, where the risk is not covered, and except for amount of claims above the coverage provided by the Agency. The schedule so established may, from time to time, be amended by the Board of Trustees (but not during any coverage period) to sustain the financial NCIRMA 2026 3 integrity of the Agency or to reflect the desires of the members as determined by the Board of Trustees. SECTION IV. MUTUAL COVENANT OF RISK SHARING The members intend this Agreement as a mutual covenant of risk sharing and not as a partnership. No member by reason of being a member of the Agency and contributing to the pool shall be liable to the Agency, to any other member, or to any claimant, except for the payment of the premiums and/or contributions provided for in its application for membership and joinder in this Agency, and for any necessary additional assessments levied by the Trustees to offset a claims fund deficiency. SECTION V. ADMINISTRATO The North Carolina League of Municipalities, an unincorporated association with offices at 434 Fayetteville Street, Suite 1900, Raleigh, North Carolina, 27601, is designated as the Administrator of the Agency. Subject to the services and sponsorship agreement between the Administrator and the Agency, the Administrator shall provide day-to-day management of the Agency and shall have the authority to contract with third parties for provision of services. The Administrator may establish offices where necessary within the State of North Carolina and employ staff to carry out the Agency's purpose. The Administrator shall deposit to the account of the Agency at any financial institution or financial institutions designated by the Trustees all premiums and/or contributions as collected and such monies shall be disbursed and/or invested only as provided by the rules, regulations, policies, and bylaws of the Trustees. The Administrator may enter into financial services agreements with financial institutions and issue checks in the name of the Agency. The Administrator shall receive such compensation as shall be determined from time to time by written agreement with the Trustees. SECTION VI. ADMISSION TO MEMBERSHIP; SUSPENSION & EXPULSIO All members of the Agency hereby agree that the Trustees may admit as members of this Agency only the units of local government set forth in North Carolina General Statutes 160A460 et seq. (Part 1 of Article 20 of Chapter 160A). The Trustees shall be sole judge of whether or not an applicant shall be admitted to membership. Except as otherwise provided in Section VII (i) of this Agreement, a member may be suspended or expelled by the Trustees from the Agency only after forty-five (45) days' notice has been delivered to the member in accordance with Section XV of this Agreement. No payment shall be required by the Agency as a result of any workers' compensation or employers' liability claim of the suspended or expelled member occurring after forty-five (45) days' notice has been delivered to the member in accordance with Section XV of this Agreement. SECTION VII. RULES, REGULATIONS, POLICIES, AND BYLAWS; MEMBERS' RESPONSIBILITIES The rules, regulations, policies, and bylaws for the administering of the Agency and the admission and expulsion or suspension of members shall be promulgated by the Trustees. In addition, each member of the Agency agrees as follows: NCIRMA 2026 4 (a) To make prompt payment of all premiums and/or contributions as required by the Trustees; (b) To (and they do hereby) appoint the Trustees and Administrator as its agent and attorney -in -fact, to act on its behalf and to execute all contracts, reports, waivers, agreements, excess insurance or reinsurance contracts, and service contracts; and to make or arrange for payment of claims, medical expenses, and all other things required or necessary; (c) In the event of an accident or a claim reported by a member, to make immediate provision for remedial care for its employee, and to give immediate notification of the claim to the Administrator on the prescribed forms; (d) To permit the Agency to defend in the name of and on the behalf of the members any suits or other proceedings which may at any time be instituted against them on account of injuries or death within the purview of the North Carolina Workers' Compensation Act or employers' liability coverage, including suits or other proceedings alleging such injuries and demanding damages or compensation therefore (although such suits, other proceedings, allegations, or demands are considered to be wholly groundless, false, or fraudulent) and to pay all judgments or costs taxed against members in any legal proceeding which is so defended at the direction of the Agency, all interest accruing after entry of judgment and all expenses which are incurred pursuant to the direction of the Agency for investigation, negotiation, or defense. It is agreed that the Agency shall make all final decisions regarding the legal defense of claims, and shall have absolute and conclusive authority with regard to defense, settlement, and payment of claims. It is agreed that the independent settlement or payment of any claim by or on behalf of a member without approval of the Agency shall be at the sole cost of the settling member without any reimbursement or other resources from the Agency and may be grounds for expulsion of the member from the Agency; (e) To cooperate in all respects with the Agency, the Trustees, the Administrator, and any contractors of the Agency in carrying out the purposes of this Agreement; (f) In the event of the payment of any loss by the Agency under this Agreement, the Agency shall be subrogated to the extent of such payment to all the rights of the member against any person or other entity legally responsible for damages for such loss, and in such event, the member agrees to render all reasonable assistance to affect recovery; (g) To follow the reasonable safety, loss prevention, loss control, and risk management recommendations of the Trustees, the Administrator, or contractors of the Agency in order to minimize claims against the Agency; (h) The Trustees, the Administrator, and any contractors of the Agency shall be permitted at all reasonable times to inspect the work places, plants, works, machinery, and appliances of each member covered by this Agreement, and shall be permitted at all reasonable times and within two years after the final termination of a member's membership to examine the member's books, vouchers, contracts, NORMA 2026 5 documents, and records of any and every kind which show or tend to show or verify the premiums and/or contributions that are payable under the terms hereof, (i) Risk sharing by the Agency under the terms of this Agreement shall begin upon payment of the premium and/or contribution by the member to the Agency. Risk sharing by this Agency under the terms of this Agreement shall expire and be cancelled automatically for nonpayment of premiums and/or contributions, and a member may be expelled from the Agency upon thirty (30) days' notice by the Trustees, the Administrator, or their designee delivered to the member in accordance with Section XV of this Agreement specifying the date that cancellation shall be effective. No payment shall be required of the Agency as a result of any workers' compensation or employers' liability claim of the expelled member occurring after 30 days' notice has been delivered to the expelled member in accordance with Section XV of this Agreement; (j) To pay any assessment duly levied by the Trustees under the terms of this Agreement. If a member cancels or withdraws from the Agency, the member shall pay its pro rata share of any assessment relating to the member's period of enrollment; and (k) In order that an adequate reserve may be maintained, the members further agree that the Trustees shall have the right to assess the members pro-rata in such amounts as will be sufficient to maintain at all times a minimum reserve, equal to at least the annual premium and/or contributions for the coverage provided by the Agency. Should a member fail to pay any assessment as provided for in this Section within thirty (30) days of the assessment date, all interest and claim of such defaulting member in and to the Agency shall automatically cease. SECTION VIII. ALLOCATION OF MONIES The Trustees are authorized to set aside from the premiums and/or contributions collected from members a reasonable sum for the operating and administrative expenses of the Agency. All remaining monies coming into their hands during any fiscal year of the Agency shall be set aside and shall be used only for the following purposes: (a) Disbursement to establish a reserve for payments of required medical, surgical, hospital, rehabilitation, nursing expenses, payments of workers' compensation to employees of members covered by this Agreement, and employers' liability claims including settlements, awards, judgments, legal fees, and costs in all contested cases to the extent provided herein; (b) Payment of such compensation to the Administrator as shall be determined from time to time by written agreement between the Administrator and the Trustees; (c) Payment of all costs of all bonds and auditing expenses required of the Agency, the Administrator, or its agents or employees; and NCIRMA 2026 6 (d) Distribution to members in such manner as the Trustees shall deem to be equitable of any excess monies remaining after payment of claims and claims expenses and after provision has been made for open claims and outstanding reserves; provided, however, that no such distributions shall be made earlier than twelve (12) months after the end of an Agency Year. Undistributed excess funds from previous Agency Years may be distributed at any time if they are not required as reserves and if approved for distribution by the Trustees. Monies in excess of those required to fulfill the purposes, costs, and other obligations of the Agency as set out hereinabove will be accumulated in the Agency or distributed to the member units at the discretion of and in the manner provided by the Trustees. SECTION IX. FISCAL YEAR; CONTINUING CONTRACT; WITHDRAWAL OF MEMBERS SUBJECT TO PROVISION OF 30 DAYS' WRITTEN NOTICE TO ADMINISTRATOR; FEE IMPOSED FOR FAILURE TO PROVIDE 30 DAYS' WRITTEN NOTICE OF WITH DRAWAL The Agency shall operate on a fiscal year from 12:01 a.m. July 1 st to midnight on June 30 of the succeeding year (the "Agency Year"). Application for membership, when approved in writing by the Trustees or their designee, shall constitute a continuing contract for each succeeding Agency Year unless cancelled by the Trustees, or unless the member shall have resigned or withdrawn from the Agency by having written notice delivered to the Administrator on or before May 30 (i.e., the written notice must be delivered to the Administrator in accordance with Section XV of this Agreement thirty (30) days prior to the last day, June 30, of the Agency Year). Failure to provide thirty (30) days' written notice shall subject the member to an exiting fee constituting two percent (2%) of the premium for that Agency Year. SECTION X. MEMBERS BOUND BY AGREEMENT; TERMINATION PERMITTED ONLY AT END OF FISCAL YEAR; FINAL ACCOUNTING Any member who formally applies for membership in the Agency and is accepted by the Trustees shall thereupon become a party to this Agreement and be bound by all of the terms and conditions hereof, and such application shall constitute a counterpart of this Agreement. Cancellation of this Agreement or of any plan, coverage, product or service provided by the Agency on the part of any member, or withdrawal from membership, shall be permitted only at the end of a fiscal year. A terminating member is entitled to a final accounting when all incurred claims are concluded, settled, or paid. SECTION XI. INTENTION OF INDEFINITE OPERATION; RESERVATION OF RIGHT TO TERMINATE AGENCY; REVERSION OF MONIES OR OTHER ASSETS UPON TERMINATION This Agency has been established with the bona fide intention that it shall be continued in operation indefinitely and that the premiums and/or contributions to the Agency shall continue for an indefinite period. However, the Trustees reserve the right at any time to terminate the Agency by a NCIRMA 2026 7 written instrument to that effect executed by the Trustees. In the event of such termination, member premiums and/or contributions (other than duly authorized assessments) shall cease as of the date of termination and the assets then remaining in the Agency shall continue to be used and applied, to the extent available, for the (a) payment of claims arising prior to such termination and administrative and other expenses and obligations arising prior to such termination; and (b) payment of reasonable and necessary expenses incurred in such termination. Any monies or other assets thereafter remaining in the Agency shall revert to the members of the Agency as of the date of termination pro-rata to the annual premiums and/or contributions of said members paid in the year of termination. In no event shall any such assets be returned or distributed to any individual. Upon such termination, the Trustees shall continue to serve for such period of time and to the extent necessary to effectuate termination of the Agency. SECTION XII. AMENDMENT OF AGREEMENT This Agreement may be amended by an agreement executed by those members constituting a majority in paid -in dollar volume of contributions to the Agency during the current Agency Year. In lieu of this amendment procedure, the members hereby appoint the Board of Directors of the North Carolina League of Municipalities as their agents to make any amendments to this Agreement which would not fundamentally alter the contemplated arrangement. For purposes of illustration, and not limitation, an amendment to increase or decrease the number of members of the Board of Trustees or their terms shall not be construed as a fundamental alteration of the arrangement, provided that the current term of a member may not be terminated by any such amendment. Written notice of any amendment proposed for adoption by the Board of Directors of the North Carolina League of Municipalities shall be delivered to each member in accordance with Section XV of this Agreement not less than 30 days in advance. Written notice of amendments finally adopted by the Board of Directors of the North Carolina League of Municipalities shall be delivered to each member in accordance with Section XV of this Agreement not more than 30 days after adoption. SECTION XIII. HEADINGS Headings of various sections and subsections of this Agreement have been inserted for the convenience of reference only and shall not be construed as modifying, amending, or affecting in any way the express terms and provisions of this Agreement. SECTION XIV. INTERPRETATIO This Agreement shall be governed and interpreted under the laws of the State of North Carolina. This Agreement is intended to serve as an interlocal agreement, for purposes of executing the undertaking described in the preceding sections and paragraphs, under North Carolina General Statutes 160A-460 et seq. (Part 1 of Article 20 of Chapter 160A). The terms of this Agreement do not constitute a coverage document or form applicable to any specific claim. NCIRMA 2026 8 Should any clause, sentence, provision, paragraph, or other part of this Agreement be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of this Agreement. Each of the parties declares that it would have entered into this Agreement irrespective of the fact that any one or more of this Agreement's clauses, sentences, provisions, paragraphs, or other parts have been so declared invalid. Accordingly, it is the intention of the parties that the remaining portions of this Agreement shall remain in full force and effect without regard to the clause(s), sentence(s), provision(s), paragraph(s), or other part(s) invalidated. Failure of the Trustees, the Administrator, or their designees to insist in any one or more instances upon the performance of any of the covenants, agreements, and/or conditions of this Agreement, or to exercise any right or privilege herein conferred, shall not be construed as a waiver of any such covenant or condition. This Agreement contains the entire agreement between the parties, whom shall not be bound by any verbal statement or agreement made heretofore. SECTION XV. MEMBER REPRESENTATIVES; NOTICE There shall be a Member Representative for each member of the Agency who shall be the agent of the member for purposes of giving and receiving notices required or permitted pursuant to this Agreement. Each member shall designate a Member Representative and provide the member's postal mailing address and, if applicable, a facsimile number and electronic mail address to which the Administrator may provide notices hereunder. The Administrator shall provide forms, as needed, for use by the member in designating its Member Representative and providing its address information. Such information may be updated at any time there is a change in the information provided thereon. Until such time as different information is provided, the Member Representative shall be the member's chief administrative official as shown on the records of the Administrator and the member's postal mailing address, facsimile number and electronic mail address shall be that as provided by the member on its most recent application. For purposes of illustration and not limitation, a chief administrative official shall be considered to be a manager, administrator, clerk or executive director as may apply with respect to a particular member. Any notices required or permitted by this Agreement shall be in writing and may be given: in person, by United States Postal Service, by facsimile, or by electronic mail. Notices shall be deemed delivered: (a) when received if delivered in person, (b) three business days after being deposited with the United States Postal Service, postage prepaid, properly addressed to the party to whom such notice is intended to be given at the address established under this section, (c) on the date sent if given by facsimile, provided that an electronic confirmation of delivery has been received by the sender and that a copy of such notice was also sent on such date by mailing, or (d) on the date sent if given by electronic mail, provided a copy of such notice was also sent on such date by mailing and receipt of the electronic mail is acknowledged by the receiving party by return electronic mail. Notices provided to the Administrator shall be delivered, addressed or directed as follows, or to such other address as designated by the Administrator in written notice to the member provided in accordance with this paragraph: NCIRMA 2026 9 Executive Director North Carolina League of Municipalities 434 Fayetteville Street, Suite 1900 Raleigh, North Carolina 27601 Facsimile number: 919-301-1053 Electronic address: RMSnotifications@nclm.org IN WITNESS WHEREOF, the participating entity listed below acknowledges its membership in the Agency and acceptance of obligations hereunder, by the due execution hereof, following appropriate governing body approval, by its duly authorized official. Further, the members of the North Carolina Interlocal Risk Management Agency have caused these presents to be signed by their duly authorized Chair of the Board of Trustees and have had this Agreement attested by its duly authorized Administrator. WITNESS: NORTH CAROLINA INTERLOCAL RISK MANAGEMENT AGENCY IBM Chair Board of Trustees NORTH CAROLINA LEAGUE OF MUNICIPALITIES IC f Executive Director Administrator CITY OF DUNN Melissa R. Matti, City Clerk William P. Elmore, Mayor NCIRMA 2026 10 CITY OF 887 NORTHDUNN 4 C1610""J4 ieymxl Regular Meeting, June 23, 2026 Agenda Item(s): FY27 Budget Update Presenter(s): Justin Hembree, City Manager Cary McNallan, Finance Director Responsible Staff: Cary McNallan, Finance Director Action Item: No Attachment(s): 1) None The City Manager & Finance Director will provide an update on the FY27 Budget. Page 1 of 1 CITY OF ;19W,0000 DUNN NORTH CAROLINA xhere cs�cftwu% beyuu/ Regular Meeting, June 23, 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 Page 1 of 1 CITY OF DUNN NORTH CAROLINA 401 E Broad St . PO Box 1065 . Dunn, North Carolina 28335 (910) 230-3500 • CityofDunn.org MEMORANDUM To: Honorable Mayor, City Council Members From: Cary McNallan, Finance Director Subject: May 2026 Financial Report (unaudited) June 12, 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 $13,634,417 as of May 31, 2026, compared to $6,372,005 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 $3,080,837 in the Eastside Pump Station Construction account. Cash Balances by Fund $20,000,000 $15,000,000 $10,000,000 h $5,000,000 A-$5,000,04 O01\~O�A \�� g\1P\���h p\ ��� \L \��~� \ y\�A 0 .\iy\� ,5\� p\i h\�i 6\'� \� \� \� �p\ -$10,000,000 • General & Grant Funds + Misc Prois • Powell Bill/Street Resurf aN Stormwater Fund ■ Water Ops & Prois ■ Sewer SRF Fund Cash and Investments • Sewer/Water Ops & Projs (Swr only FY26) ■ Water SRF Fund I $1,116,340, $360, 0.0%' 6.7%:_— j $3,080,837, 18 4% $321,556,1:� $12,196,162 , 73.0% ■ NC Capital Mgmt Trust ■ First Citizen Bank • BAN Constr A2ct KS Trust Investments • Misc Other Wkere communi� 4ns! • The benchmark for this period is 91.7% 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 April 2026 totaled $127,991 compared to $120,712 for April 2025. FY26 year to date property tax revenues received are $5,897,346. Our total estimated taxes for FY26 are $5,931,100. These totals include taxes for Property, Motor Vehicles, & Downtown District. Ad Valorem Tax Revenues by Month Collected $2,500,000.00 $2,000,000.00 $1, 500, 000.00 $1,000,000.00 $ 500, 000.00 S- i ■ r i � � � 1 i ■ 1 ■ � � � / 1 ? (U aT nA *.' > U Lr) � �- *- T C to cca.+ ✓ > U W 4 ^' Q a O Z Q `i Q CL ^' Q a, C)Z 0 `-" i' Q Ln C • For Sales Taxes, our March receipts were $359,577. This is $38,407 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 $2,987,260, or 86.6%. Sales Tax Reports from the Department of Revenue are provided at least two months behind actual collections. Our next sales tax deposit will be July 15th. 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 tea, M CIm Z N = a U O GUi N a M Q LA c r4 = Q V > U tD a M LL Q Q l0) O Z Q C LL Q ¢2. o Z Q C lLLL ro • Building Permit and Development Fees for the month of May were $12,504. To date we have collected a total of $198,432 or 107.8% of the budget. At the same time last year, our year-to-date revenue was $133,904. 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. YYfS flctualsys Budgets - Expenditures FY25 YTD Actuals vs Budgets - Expenditures All Funds - FY25 May FY26 All Funds - FY24 May FY25 Departments/Funds FY26 Budget MTD Actuals YTD Actuals %of Bdet Departments/Funds FY25 Budget MTD Actuals YTD Actuals ° of B General Govt 3,421,385.73 237,516.91 2,890,364.59 84.5% General Govt 3,156,827.15 218,001.58 2,616,040.90 82.9% Public Safety 5,611,285.00 574,437.31 5,099,940.41 90.9% Public Safety 5,345,922.83 488,476.43 4,708,043.89 88.1% Public Works 2,059,160.30 151,426.99 1,776,591.51 86.3% Public Works 2,012,515.26 183,020.88 1,733,203.32 86.1% Sanitation & Waste Removal 946,000.00 146,638.57 861,428.63 91.1% Sanitation & Waste Removal 857,000.00 65,010.90 691,363.07 80.7% Parks, Recreation, & Cemetery 1,771,861.62 161,518.18 1,623,371.73 91.6% Parks, Recreation, & Cemetery 1,690,341.75 190,450.64 1,494,808.45 88.4% Library 19,495.00 65.00 18,784.32 96.4% Library 6,006.00 401.45 5,115.11 85.2% GF Debt Service 806,708.00 67,299.00 763,327.61 94.6% GF Debt Service 2,529,718.00 82,983.68 893,218.85 35.3% GF OperatingTrfs Out & Resrvs 685,360.00 19,300.00 620,706.33 90.6% GF OperatingTrfs Out & Resrvs 3,146,995.30 938,633.00 3,110,920.30 98.9% Generat Ftwd Totals 15,321,255.65 1,358,201.96 13.654,515.13 89.1% General Fund Totals 18,745,326.29 2,166,978.56 15,252,713.89 81.4% WaterAdmin & Finance 677,377.53 51,791.32 550,339.80 81.2% W&S Admin & Finance 1,224,657.73 106,767.77 1,104,288.36 90.2% Water Distribution/Collection 1,449,368.92 125,175.40 1,195,444.44 82.5% W&SDistribution/Collection 2,798,726.34 150,821.13 2,591,079.27 92.6% Water Treatment Plant 2,096,159.00 216,535.18 1,680,374.39 80.2% Water Treatment Plant 2,237,896.69 229,473.72 1,882,089.53 84.1% Sewage Treatment Plant - - - #DIV/O! Sewage Treatment Plant 2,113,296.22 146,935.38 1,884,633.78 89.2% Water Debt Service 930,305.09 110,810.68 347,586.89 37.4% W&S Debt Service 1,671,593.00 731,879.19 1,183,571.87 70.8% Water OperatingTrfs Out & Resrvs 1,519,791.41 1,519,791.41 1,519,791.41 100.0% W&S OperatingTrfs Out & Resrvs 1,327,675.08 230,102.00 996,448.00 75.1% Water Fund Totals 6,673,001.95 2,024,103.99 5,293,536.93 79.3% W&S Fund Totals 11,373,845.06 1,595,979.19 9,642,110.81 84.8% Sewer Admin & Finance 741,811.79 52,961.45 598,233.69 80.6% W&S Admin & Finance #DIV/O! Sewer Distribution/Collection 1,054,551.38 82,191.13 828,779.64 78.6% W&SDistribution/Collection #DIV/0! Water Treatment Plant - - #DIWO! Water Treatment Plant #DIV/0! Sewage Treatment Plant 2,167,809.00 177,240.66 1,945,573.02 89.7% Sewage Treatment Plant #DIV/0! Sewer Debt Service 1,641,585.13 525,743.39 1,169,438.18 71.2% W&S Debt Service #DIV/0! Sewer OperatingTrfs Out & Resrvs 210,230.00 - 0.0% W&S OperatingTrfs Out & Resrvs #DIV/0! Sewer Fund Totals 5,815.967 30 838,136.63 4,542,024.53 79.1% W&S Fund Totals - - - 4DIVI0i Stormwater Operations 444,650.69 45,742.64 83,662.30 18.8% Stormwater Operations 427,751.61 33,814.04 255,269.63 59.7% Stormwater Debt Service 177,303.00 45,804.77 48,995.37 27.6% Stormwater Debt Service 52,630.00 45,664.36 51,231.97 97.3% 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% StormwaterTotats 661,163.69 91,547.41 162,410.68 24.6% StorrrtwaterTotals 524,382.11 79,478.40 306,502.10 58.5% Powell Bill Operations 1,519,302.00 162,430.04 1,531,802.02 100.8% Powell Bill Operations 308,747.00 3,364.38 214,216.54 69.4% Powell Bill Debt Service 215,252.00 - 215,251.76 100.0% Powell Bill Debt Service 665,253.00 - 215,251.76 32.4% PB OperatingTrfs Out & Resrvs - - - #DIV/O! PB OperatingTrfs Out & Resrvs - - - #DIV/O! Powell Bill Totals 1,734,554.00 162,430.04 1,747,053.78 100.7% Powell Bill Totals 974,000.00 3,364.38 429,468.30 44.1% Budget to Actual - FY26 Expenditures Genera IGovt 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 Operating Trfs 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 FY26 YTD Actuals vs Budgets - Revenues FY25 YTD Actuals vs Budgets - Revenues All Funds - FY25 May FY26 All Funds - FY24 May FY25 Revenue Category/Fund FY26 Budget MTD Actuals YTD Actuals % of Bdg Revenue Category/Fund FY25 Budget MTD Actuals YTD Actuals % of Bd9t GF-Ad Valorem Taxes 5,931,100.00 127,991.04 5,937,874.92 100.1% GF-Ad Valorem Taxes 5,759,728.00 86,500.79 5,786,580.00 100.5% GF-Sales Taxes 3,481,000.00 304,018.09 2,653,784.74 76.2% GF-Sales Taxes 3,387,400.00 259,118.39 2,312,510.80 68.3% GF-Other Taxes 783,450.00 35,611.52 425,767.09 54.3% GF-Other Taxes 718,150.00 36,006.55 433,615.40 60.4% GF-Licenses & Permits 564,250.00 61,081.42 606,271.43 107.4% GF-Licenses & Permits 563,650.00 47,937.30 515,440.65 91.4% GF-Charges for Services 1,709,779.00 147,356.34 1,588,163.89 92.9% GF-Charges for Services 1,566,162.73 132,974.52 1,513,634.81 96.6% GF-Other Revenue 2,698,716.38 84,986.60 1,370,784.23 50.8% GF-Other Revenue 4,702,346.56 87,271.53 1,468,712.58 31.2% GF-Operating Trfs In 152,960.27 26,487.12 152,958.27 100.0% GF-Operating Trfs In 2,047,889.00 - 1,927,383.00 94.1% Genera Fund Totals 15,321,255.65 787,532.13 12,735,604.57 83.1% General Fund Totals 18,745,326.29 649,809.08 13,957,877.24 74.-5% Utility Chgs-Water 4,777,600.00 438,153.75 4,536,363.84 95.0% W&S Utility Chgs-Water 4,362,325.00 369,359.26 3,814,591.52 87.4% Utility Chgs-Sewer - - - #DIV/0! W&S Utility Chgs-Sewer 3,897,450.00 334,914.46 3,383,962.36 86.8% Water Utility Other Rev 1,859,953.86 24,132.97 378,342.80 20.3% W&S Utility Other Rev 3,114,070.06 15,642.79 475,838.84 15.3% Water Utility Oper Trfs In 35,448.09 - 35,448.09 100.0% W&S Utility Oper Trfs In - - - #DIV/0! Water Fund Totals 6,673,001.95 462,286.72 4,950,154.73 74.2% W&S Fund Totals 11,373,845.06 719,916.51 7,674,392.72 67.5% Utility Chgs-Water - - - #DIV/01 W&S Utility Chgs-Water - - - #DIV/0! Utility Chgs-Sewer 5,071,232.00 427,141.25 4,410,267.10 87.0% W&S Utility Chgs-Sewer - - - #DIV/0! Sewer Utility Other Rev 688,583.17 12,594.96 68,195.62 9.9% 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 5,812,987.30 439,736.21 4,531,634.85 78.0% W&S Fund Totals - - - #DIV/0! Stormwater Revenues 661,163.69 7,141.06 668,713.78 101.1% Stormwater Revenues 524,382.11 672.87 530,512.03 101.2% Stormwater Totals 661,163.69 7,141.06 668,713.78 101.1% Stormwater Totals 524,382.11 672.87 530,512.03 101.2% Powell Bill Revenues 1,734,554.00 31,350.30 1,025,795.82 59.1% Powell Bill Revenues 974,000.00 24,018.91 996,642.75 102.3% Powell Bill Totals 1,734,554.00 31,350.30 1,025,795.82 59.1% Powell Bill Totals 974,000.00 24,018.91 996,642.75 102.3% Budget to Actual - FY25 Revenues GF-Ad Valorem Taxes GF-Sales Taxes GF-Other Taxes GF-Licenses & Permits j! GF-Charges for Services GF-Other Revenue GF-Operating Trfs In Utility Chgs-Water Utility Chgs-Sewer Water Utility Other Rev Sewer Utility Other Rev `� Water Utility Oper Trfs In I Sewer Utility Oper Trfs In Stormwater Totals 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 Actuals ■ FY26 Budget CITY OF � DUNN NORTH CAROLINA xAere es� ,6e2"`s/ Regular Meeting, June 23, 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 b. Police Page 1 of 1 Planning &Inspections Monthly Report TO: City Manager and City Council FROM: Stephanie Goodrich DATE: May 28, 2026 SUBJECT: Planning & Inspections - Monthly Report Please see the following report for the month of May, 2026 from the Planning & Inspections Department. 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U U Z Z men V LO 0 w N N CD W N N O O N N W W 0 0 N N M M (D CO . .--1 U U Z Z m co n w M N N W W N N O O N N W W 0 0 N N M M W M c-1 .-1 U U Z Z (n m O D) (0 w N N O 0 N N O O N N W LJ 0 0 N N M M M CO e-I .-1 U U Z Z (n m O " N n N N O O N N O O N N W W 0 0 N N M M a0 tD . .--1 U U Z Z (n m N co n N N N (D 0 N N O O N N W W 0 0 N N M M W 00 .--1 e-L U U Z Z m m V L) N n N N CO CD N N O O N N W W 0 0 N N M M 00 M .--L ••-I U U Z Z m m w Il n N N N (D CO N N O O N N W W 0 0 N N M M W 00 '-I '-L U U Z Z m m CO m n N N N CO (0 N N O O N N W W 0 0 N N M M M 00 '-L .--� U U Z Z m m Cloudpermit application US-NC18320-CE-2026-280 Municipalnumber 310 N MCKAY AVE DUNN, NC 28334 i 1516-59-6071.000 1 High Grass and Overgrowth descriptionCase HIGH GRASS AND OVERGROWTH. 5/27/26, 12:40 PM 5/27/26, 12:43 PM Active US-NC18320-CE-2026-281 203 N WILMINGTON AVE DUNN, NC 28334 1516-86-3567.000 Junk and Debris JUNK AND DEBRIS. 5/27/26,1:38 PM 5/27/26,1:40 PM Active US-NC18320-CE-2026-282 307 N WASHINGTON AVE DUNN, NC 28334 1516-87-2122.000 High Grass and Overgrowth HIGH GRASS AND OVERGROWTH. 5/27/26, 2:14 PM 5/27/26, 2:16 PM Active US-NC18320-CE-2026-283 516 E TOWNSEND ST DUNN, NC 28334 1516-87-9805.000 High Grass and Overgrowth HIGH GRASS AND OVERGROWTH. 5/27/26, 3:51 PM 5/27/26, 3:52 PM Active US-NC18320-CE-2026-284 510 E TOWNSEND ST DUNN, NC 28334 1516-87-9728.000 High Grass and Overgrowth HIGH GRASS 5/28/26, 7:41 AM 5/27/26, 7:42 AM Active US-NC16320-CE-2026-285 90B E POPE ST DUNN, NC 28334 1516-74-8331.000 High Grass and Overgrowth Property overgrown. 5/28/26, 7:48 AM 5/28/26, 7:49 AM Active US-NC18320-CE-2026-286 508 E TOWNSEND ST DUNN, NC 28334 1516-87-9731.000 High Grass and Overgrowth HIGH GRASS 5/28/26, 7:49 AM 5/27/26, 7:50 AM Active US-NC18320-CE-2026-287 506B E TOWNSEND ST DUNN, NC 28334 1516-87-9646.000 High Grass and Overgrowth HIGH GRASS 5/28/26, 7:58 AM 5/27/26, 8:00 AM Active US NC18320-CE-2026-288 413 S MAGNOLIA AVE DUNN, NC 28334 1516-65-4578.000 High Grass and Overgrowth PROPERTY OVERGROWN 5/28/26, 8:06 AM 5128/26, 8:08 AM Active US-NC18320-CE-2026-289 307 E HARNETT ST DUNN, NC 28334 1516-77-5511.000 High Grass and Overgrowth HIGH GRASS 5/28/26, 8:15 AM 5/27/26, 8:17 AM Active US-NC18320-CE-2026-290 801 S ELM AVE DUNN, NC 28334 1516-54-7587.000 High Grass and Overgrowth PROPERTY OVERGROWN 5/28/26, 8:25 AM 5/28/26, 8:28 AM Active US-NC18320-CE-2026-291 311 E HARNETT ST DUNN, NC 28334 1516-77-5495.000 High Grass and Overgrowth HIGH GRASS. 5/28/26, 8:53 AM 5/27/26, 8:54 AM Active US-NC18320-CE-2026-292 803 S ELM AVE DUNN, NC 28334 1516-64-0351.000 High Grass and Overgrowth PROPERTY OVERGROWN 5/28/26, 8:54 AM 5/28/26, 8:56 AM Active CITY OF DUNN (;I PARKS AND RECREATION 205 Jackson Rd • PO Box 1065 • Dunn, North Carolina 28335 (910) 892-2976 • CityofDunn.org May Monthly Report Dunn Parks & Recreation Rentals Facility Rentals, Programs & Etc. Facility Dunn Community Building Numbers 6 Clarence Lee Tart Memorial Park 0 Multipurpose Room 0 Codrin ton Park 0 Nathan Harris Athletic Complex @ Tyler Park 0 Baseball & Softball Field Rentals 5 Tennis Courts 0 Picnic Shelter Rentals 6 Summer Camp Registrations Tennis/Pickleball 10 Volleyball 16 Math 4 Baseball 18 Softball 19 Boys Basketball 15 Girls Basketball 4 Football 8 Arts & Crafts 15 Fun & Games 12 Murder Mystery 4 Indoor/Outdoor Soccer 20 Escape Room P K V as Recreational Walkers 6 169 Free Play 14-17 years old 82 Free Play 11-13 years old 25 Free Play 10 & Under years old 10 Adult Play 38 Batting Cage Rentals 0 Pickleball Players 108 Senior Center Rac uetball Court General Sign In 0 98 Bible Study 0 Bingo 40 Exercise Class 76 Educational Class & Other Activities 0 Line Dancing 41 Cemetery Report Cemetery Sections Existing section 1-9, 11, 13 & 15 Total Spaces 6,960 Purchased 6,558 AvailableResthaven 402 Section 12 (opened May 2023) 432 43 387 Section 14 (opened May 2023) 488 65 423 Section 10 & 16 (not et o en) 15248 0 0 Greenwood Cemetery Memorial Cemetery Existing Section A — Z Existing Section A — F 10,092 3,448 9,743 1,511 349 1,825 Existing section I, II, III 272 272 0 Section G— P (not yet open) 3,336 0 0 CITY OF 11111DUNN POLICE DEPARTMENT 401 E Broad St. PO Box 1065 Dunn, NC 28335 (910) 892-2399 CityofDunn.org Chief of Police Lynn Gay May 2026 Monthly Crime Stats (0510112026 to 0513112026) Assigned Cases Closed Recovered Property Search Warrants Cases Executed 24 16 0 18 Cellebrite Forensic Digital Data Extraction Device: 6 Extractions Dunn Police Arrest & Citation Stats May 25 60 354 Calls for service: 1,484 Overdose Stats May 0 5 5 1 V&re communi� h yins! CITY OF DUNN POLICE DEPARTMENT 401 E Broad St. PO Box 1065 Dunn, NC 28335 (910) 892-2399 CityofDunn.org Chief of Police Lynn Gay Total Plate Reads: Flock Hot List Hits Safety Recovered Property Utilizations Leads Established Arrest 1,231,584 5,837 1 1 1 Marijuana 0 Am hetamines/Metham hetamines 0 Stimulants 0 Other Drugs 0 ;:E 'Mere communi� 6Tins! OF ��DiJNN PUBLIC UTILITIES Public Utilities Dept May 2026 Monthly Report 101 E. Cleveland St., Dunn, NC 28334 phone 910-892-2948 fax 910-892-8871 www.dunn-nc.org Water/Sewer Department On Ca ll . _ Leak Repair Water Tap New Sewer Tap Sewer Tap Renewals A Water Construction Sewer Stoppage Sewer Construction -- Manhole Inspection Outfall Maintenance Hydrant Repair Utility Locates w - Water Meter Repair/Investigations Retire Water and Sewer Services Valve Maintenance Taste and Odor Complaint ENN4 Water Quality Flushing "2 Low Pressure Complaint Other — Water Other — Sewer 6 1 1 0 25 752 167 229 2 15 5 Public Utilities Dept-WTP I May 2026 Monthly Report 101 E. Cleveland St., Dunn, NC 28334 phone 910-892-2948 fax 910-892-8871 www.dunn-nc.org 120 f tIff c 0 60 0 40 20 Total Million Gallons Pumped 87.861 Average Million Gallons Per Day 2.834 Pumped WWI Total Million Gallons Bulk Sales 55.179 Water Plant Averages and Total Million Gallons Pumped 2025 -2026 5 61 5 5 034 �11 22 82 75 3.61 7 1 1 5 5 55 0 2.= 2.= IM 3.M 3.M 3.M 2.M 2.6®� 2.6®� 2.= 2.6®� 2.= 2.8 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 1-Jan 1-Feb 1-Mar 1-Apr 1-May 2025-2026 ® Daily Average Pumped V Total Million Gallons Bulk Sales U Total Million Gallons Pumped Bulk Chemicals and Rain Fall Totals 2025-2026 90 80 70 60 50 40 30 20 10 0 ti� tih ti� ti� tih ti� ti� tih tiQ) e� c o�' ec �� Q at' fit' as �Che�tnicals U�d X 1,0OIbs Rain Fall in`��nches 4 P *Data from A.B. Uzzle Water Treatment Plant records, and Finance Department billing. Public Utilities Dept I May 2026 1 Monthly Report 101 E. Cleveland St., Dunn, NC 28334 phone 910-892-2948 I fax 910-892-8871 www.dunn-nc.org Black River Wastewater Treatment Facility Total Million Gallons Treated Average Million Gallons Per Day Treated May 44.233 1.426 Rainfall in Inches 3.86 *Data from NC DEQ DMR documents and Black River Wastewater Treatment Plant records Maintenance building 019- 2 cv 0 1.s co 0 1 0.5 1.2 1 0.8 C m W 4- 0 0.6 N s U C 0.4 0.2 0 Average Daily Flow 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 May 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 May �-A Million Gallons rIj w A. I..m all CD CD C) CD CD - - ------ - ---- *.0 L-09 G) CU 0 rD CrD L PUBLIC WORKS DEPARTMENT MAY 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 -GRASS 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 MAY 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 234.65 YARD WASTE IN TONS 39.45 RECYCLING WASTE IN TONS 28.98 GRAND TOTAL TONS 303.08 *Data from Republic Services Report PUBLIC WORKS DEPARTMENT MAY 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 GRASS MOWING & WEED EATING 95 OPEN/CLOSE 10 TOMBSTONE MAINTENANCE 2 TREE TRIMMING 30 TOTAL WORK ORDERS 137 CITY OF DUNN NORTH CAROLINA Where coAto� Announcements: • City of Dunn offices will be closed Friday, July 3rdin honor of Independence Day. • There will be NO Work Session in July. • The next Regular Session of the Dunn City Council is scheduled for Tuesday, July 28th at 6:3 0 p.m. • Special Called Meeting on June 30th- time TBD 1. FY2 6-2 7 Budget Adoption 2. Advisory Board Appointments Deadline for adopting FY26-27 Budget is Tuesday, June 30th. • The next Work Session of the Dunn City Council is scheduled for Tuesday, August 11th at 6:3 0 p.m. 2NC CITY OF DUNN ABC BOARD Minutes of Meeting, March 24, 2026 The Dunn ABC Board met on March 241, 2026. Present were Board Chairman Marc Phillips, Board members Cindy Smith, Rob Jones, Jerry Smith, Finance Officer Rosie Wilson, and Manager Charles Willis who served as Secretary to the Board. Board member Laura Warren joined the meeting on speakerphone. The meeting was called to order at 7:58am. Mr. Jones offered a prayer. The Board members reviewed the agenda, and pursuant to GS 18B-201, the Board affirmed there is no conflict of interest with matters coming before them today. Mr. Willis presented the minutes of the February 24, 2026 meeting that were approved by the Board. The Board members were given copies of February 2026 Financial Statements and noted that sales this year were $2,513.01 below last year. Year-to-date sales are $107,002.60 below last year. Mixed Beverage sales are $5,707.29 below last year. The Board reviewed February sales for the NC ABC Boards statewide that were sent to them on March 14, 2026. Mr. Phillips advised the Board that he still has had no response to his phone calls regarding a local property of interest for a possible relocation of Store # 1. Mr. Phillips said that he is drafting a letter of inquiry to send to the property owners. Mr. Phillips updated the Board on recent discussions with area CPA firms as to what firm would conduct the Board's annual audit for FY 2025-2026. Negotiations are underway with Giles, Strickland and Warren CPA to conduct quarterly financial reviews, and TRP Sumner, PLLC to conduct the annual audit. Contracts of engagement will be presented to the Board when agreements are finalized. The Board received a brief presentation from Ms. Wilson and Mr. Willis recapping points of interest at the recent NCAABC GM Conference which they attended in Concord, N.C. March 15-17, 2026. The Board members reviewed the information that had been sent to Jeff Strickland, Director of Public Information for the North Carolina ABC Commission in response to his request for information for the 90th Anniversary Commemorative book. Board member Cindy Smith was acknowledged and praised for her contribution in spearheading the project. (1) CITY OF DUNN ABC BOARD Minutes of Meeting, March 24, 2026 (Continued) The Board members discussed the annual NABCA Conference being held in Phoenix, AZ., May 17-21, 2026. Due to conflicts with personal schedules, no Board members were able to commit to attend. The Board agreed that Mr. Willis and Ms. Wilson should attend the conference as representatives of the Dunn ABC Board. Mr. Willis informed the Board that the summer conference for the NCAABC Boards will be held in Cherokee, N.C. August 23-26, 2026. This conference is open to Board members of all N.C. ABC Boards that are members of the association. Mr. Willis encouraged the Dunn Board members to plan to attend this conference if possible. With no other business, Mr. Jones motioned to adjourn, seconded by Mrs. Warren. The meeting adjourned at 8:48am. The next ABC Board meeting will be held on Tuesday April 28, 2026, at 8:OOam at Dunn ABC Store #1, 555 Jackson Road, Dunn, N.C. Charles P. Willis (2) 3:38 PM 03/11 /26 Accrual Basis DUNN ABC Board Profit & Loss February 2026 Feb 26 Income 40100 LIQUOR SALES - STORE #1 101,718.83 40200 LIQUOR SALES - STORE #2 182,019.50 40300 LIQUOR SALES - MIXB BEVERAGE #1 22,779.63 41000 INTEREST EARNED #1 312.71 53101 N.C. EXCISE TAX #1 -73,511.00 53201 REHABILITATION TAX #1 -908.05 53401 MIXED BEVERAGE TAX #1 -1,545.00 53501 MIXED B. TAX DEPT HUMAN RES. #1 -154.53 Total Income 230,712.09 Cost of Goods Sold 50000 • Cost of Goods Sold 167,170.21 61200 • INVENTORY ADJUSTMENT #1 -3,990.81 Total COGS 163,179.40 Gross Profit 67,532.69 Expense 60300 TRUCK DELIVERY COST 800.00 66000 Payroll Expenses 2,809.77 70101 • SALARIES -DUNN #1 23,012.00 70102 SALARIES - DUNN #2 13,717.00 70301 N.C. RETIREMENT FUND #1 2,855.32 70401 GROUP INSURANCE #1 4,352.11 70501 401 K FUND #1 988.00 70801 CASH VARIANCES #1 12.81 70802 CASH VARIANCES #2 4.69 70901 CREDIT CARD CHARGES #1 1,849.72 70902 CREDIT CARD CHARGES #2 2,254.08 71101 DEPRECIATION #1 2,345.00 71201 REPAIRS & MAINT. #1 628.00 71202 • REPAIRS & MAINT. #2 754.16 71401 • UTILITIES #1 932.02 71402 UTILITIES #2 1,302.44 71501 TELEPHONE #1 1,984.28 71502 TELEPHONE #2 242.80 72000 • INSURANCE 1,767.34 72201 • STORE SUPPLIES #1 447.66 72202 STORE SUPPLIES #2 370.77 72301 UNIFORMS #1 99.81 73001 OFFICE SUPPLIES #1 184.96 73002 OFFICE SUPPLIES #2 42.79 74201 DUES & SUBSCRIPTIONS #1 5,601.09 74401 BOARD EXPENSES - PHILLIPS 150.00 74402 BOARD EXPENSES - WARREN 150.00 74403 BOARD EXPENSES - SMITH 150.00 74405 • BOARD EXPENSES-JONES 150.00 74407 • BOARD EXPENSES -SMITH 150.00 75507 • ALC. ED. DUNN AA GROUP 200.00 75601 VEHICLE EXPENSES #1 112.96 78101 BANK CHARGES #1 730.29 78102 BANK CHARGES #2 137.94 79301 SECURITY #1 4,500.00 Total Expense 75,789.81 Net Income-8,257.12 Page 1 3:39 PM 03/11 /26 Accrual Basis DUNN ABC Board Trial Balance As of February 28, 2026 Feb 28, 26 Debit Credit 10100 • Checking Acct - First Citizens 330,456.06 10300 • NC CAPITAL MANAGEMENT TRUST 106,451.10 14500 • A/R OTHER 0.00 12000 Undeposited Funds 0.00 10801 PETTY CASH #1 731.02 11001 Change Fund #1 7,000.00 13001 PREPAID INSURANCE #1 5,778.88 14100 INVENTORY #1 588,220.78 14200 INVENTORY #2 0.00 14700 ALL BREAKAGE 0.00 15001 LAND 191,571.78 15100 • LAND IMPROVEMENTS 127,687.58 16000 • BUILDINGS 640,892.38 17001 • STORE EQUIPMENT #1 108,116.01 17002 STORE EQUIPMENT #2 40,879.90 17101 OFICE EQUIPMENT #1 14,043.56 17501 VEHICLES #1 11,963.65 19001 ACCUM. DEPRECIATION #1 453,070.70 19500 Deferred Outflows 85,837.00 20100 A/P - DISTILLERIES 135.91 20300 A/P - OTHER 19.90 20101 A/P -DISTILLERIES (TEMP) 0.00 20301 A/P - OTHER (TEMP) 1,032.91 21000 A/P - INSURANCE WITHHELD 0.00 21301 Aflac supplmental - Pre Tax 85.48 21401 Aflac Supplemental -Post Tax 42.84 22000 A/P - FEDERAL TAX WITHHELD 636.25 22100 A/P - FICA TAX WITHHELD 0.54 22200 A/P - NC INCOME TAX WITHHELD 1,017.88 22300 A/P - 401 K -EMPLER 173.36 22400 A/P - 401 K - EMPLEE 2,730.05 22600 A/P - RETIREMENT - EMPLR 2,181.80 22700 A/P - RETIREMENT - EMPLEE 1,185.60 22900 MixBev Tax Payable HR 153.28 23000 Excise Tax Payable 68,220.00 23100 Mix Bev Tax -Rev Payable 1,533.00 23300 SALES TAX PAYABLE 19,876.38 23500 Retirement Payable 0.00 23600 GARNISHMENT 59.56 24000 Payroll Liabilities 480.77 26000 Net Pension Liability/Asset 122,426.00 25000 Deferred Inflows 144.00 31000 City of Dunn Profit Dist 212,500.00 32000 • Retained Earnings 1,719,902.58 40100 • LIQUOR SALES - STORE #1 907,349.54 40200 • LIQUOR SALES - STORE #2 1,772,667.52 40300 • LIQUOR SALES - MIXB BEVERAGE #1 189,068.08 41000 • INTEREST EARNED #1 4,473.94 42000 • OTHER INCOME #1 4,500.00 53101 N.C. EXCISE TAX #1 628,817.00 53201 REHABILITATION TAX #1 7,612.24 53401 MIXED BEVERAGE TAX #1 12,836.00 53501 MIXED B. TAX DEPT HUMAN RES. #1 1,279.22 50000 • Cost of Goods Sold 1,561,386.42 61200 • INVENTORY ADJUSTMENT #1 20,146.62 60300 • TRUCK DELIVERY COST 6,307.22 66000 • Payroll Expenses 24,372.93 66900 • Reconciliation Discrepancies 0.01 70101 • SALARIES - DUNN #1 204,434.64 70102 • SALARIES - DUNN #2 114,165.76 70301 N.C. RETIREMENT FUND #1 24,459.76 70401 GROUP INSURANCE #1 31,143.48 70501 401K FUND #1 8,463.61 70801 CASH VARIANCES #1 400.08 Page 1 3:39 PM DUNN ABC Board 03/11/26 Trial Balance Accrual Basis As of February 28, 2026 Debit Feb 28, 26 70802 CASH VARIANCES #2 70803 CC VARIANCES # 1 0.00 70804 • CC VARIANCES # 2 70901 • CREDIT CARD CHARGES #1 15,162.91 70902 • CREDIT CARD CHARGES #2 20,508.68 71101 DEPRECIATION #1 18,760.00 71201 REPAIRS & MAINT. #1 2,906.95 71202 REPAIRS & MAINT. #2 7,269.45 71401 UTILITIES #1 5,514.00 71402 • UTILITIES #2 10,289.28 71501 • TELEPHONE #1 4,398.88 71502 • TELEPHONE #2 1,942.40 71601 • COMPUTER MAINT. #1 13,415.00 72000 • INSURANCE 24,820.72 72201 STORE SUPPLIES #1 3,986.56 72202 STORE SUPPLIES #2 6,382.79 72301 UNIFORMS #1 381.63 72400 TRAVEL EXPENSES - Willis 643.82 72405 • TRAVEL EXPENSES - Wilson 856.97 73001 OFFICE SUPPLIES #1 2,591.14 73002 OFFICE SUPPLIES #2 42.79 74001 PROFESSIONAL SERVICES #1 9,580.76 74201 DUES & SUBSCRIPTIONS #1 11,484.40 74202 DUES & SUBSCRIPTIONS #2 503.80 74401 BOARD EXPENSES - PHILLIPS 1,050.00 74402 • BOARD EXPENSES - WARREN 1,050.00 74403 • BOARD EXPENSES - SMITH 750.00 74405 • BOARD EXPENSES-JONES 1,050.00 74407 • BOARD EXPENSES -SMITH 1,050.00 75008 • Alc. Ed. Coats -Erwin Mid School 1,625.00 75502 ALC. ED. TRITON HIGH SCHOOL 2,000.00 75503 ALC. ED. DUNN MIDDLE SCHOOL 1,500.00 75504 ALC. ED. Dunn Elem Harn. Prim. 1,725.00 75505 Alc. Ed. Erwin Elem. School 1,625.00 75507 ALC. ED. DUNN AA GROUP 1,600.00 75509 ALC. ED. OTHER 309.00 75510 ALC. ED. TEACHERS 1,450.00 75511 Alc. Ed. Coats Elementary 1,525.00 75601 VEHICLE EXPENSES #1 1,262.88 77001 INTEREST EXPENSE #1 72.00 78001 MISCELLANEOUS EXPENSE #1 200.00 78101 BANK CHARGES #1 6,725.60 78102 • BANK CHARGES #2 400.51 79001 • LAW ENFORCEMENT #1 7,500.00 79301 SECURITY #1 7,584.89 79302 SECURITY #2 3,663.44 TOTAL 5,299,179.08 Credit 1.74 72.61 5.299.179.08 Page 2 CITY OF DUNN ABC BOARD Minutes of Meeting, April 28, 2026 The Dunn ABC Board met on April 28, 2026. Present were Board Chairman Marc Phillips, Board members Cindy Smith, Rob Jones, Jerry Smith, Laura Warren, Finance Officer Rosie Wilson, and Manager Charles Willis who served as Secretary to the Board. The meeting was called to order at 8:00am. Mr. Jones offered a prayer. The Board members reviewed the agenda, and pursuant to GS 18B-201, the Board affirmed there is no conflict of interest with matters coming before them today. Mr. Willis presented the minutes of the March 24, 2026 meeting that were approved by the Board. The Board members were given copies of March 2026 Financial Statements and noted that sales this year are $3,754.42 above last year, year-to-date sales are $103,248.18 below last year, Mixed Beverage sales are $14,224.96 above last year, and year-to-date MXB sales are $5,129.78 above last year. The Board reviewed March sales for the NC ABC Boards statewide that were sent to them on April 26, 2026. Mr. Phillips advised the Board that a letter of inquiry that he had sent to the owners about a property of interest had been returned as undeliverable. Mr. Phillips and Mr. Willis will continue research to obtain information on the property. Mr. Phillips informed the Board that following discussions with area CPA firms, it has been determined that Giles, Strickland and Warren CPA will conduct quarterly financial reviews, and TRP Sumner, PLLC will prepare the Board's annual audit. Mr. Willis pointed out that he would need the proposals and contracts for engagement of services from the firms in preparing the FY 2026-2027 Proposed Budget that will be presented to the Board at the May 26th Board meeting. The Board members were given copies of a notice from the NCAABC providing the cost for registration fees and hotel rates for the 2026 Annual Meeting to be held in Cherokee, NC August 23-25. Mr. Willis encouraged the Board members to consider attending as this session includes the annual business meeting and elections of the Board of Directors for the Association. The Board was advised that Red Ribbon Week Scholarship notification letters will be presented to five Triton High School seniors by Board member Cindy Smith on May 5, 2026. Mr. Willis will prepare a news release to be submitted for approval by the Commission prior to releasing on the Dunn ABC website and to The Daily Record. If: CITY OF DUNN ABC BOARD Minutes of Meeting, April 28, 2026 (Continued) The Board members were given a copy of a quote from SGC for a back -office upgrade to the windows software that is necessary to maintain interface with Intuit QuickBooks. As the estimated cost should fall within the current years budget range, the Board members agreed to move forward with the upgrade. Mr. Willis advised the Board that FY 2026-2027 budget proposals to include Budget Message and Proposed Budget Ordinance will be completed and presented at the meeting on Tuesday, May 26, 2026. Also to be discussed at the upcoming meeting will be employee wage adjustments for FY '26-'27. Mr. Willis suggested that due to the anticipated agenda items that day, the May 26 meeting could require a little more time than usual. With no other business, Mr. Jones motioned to adjourn, seconded by Mrs. Smith. The meeting adjourned at 8:56am. The next ABC Board meeting will be held on Tuesday May 26, 2026, at 8:00am at Dunn ABC Store #l, 555 Jackson Road, Dunn, N.C. Charl s P. 1 (2) 11:37 AM 04/20/26 Accrual Basis DUNN ABC Board Profit & Loss March 2026 Mar 26 Income 40100 LIQUOR SALES - STORE #1 127,150.34 40200 LIQUOR SALES -STORE #2 189,016.90 40300 LIQUOR SALES - MIXB BEVERAGE #1 39,871 .96 41000 INTEREST EARNED #1 342.91 42000 OTHER INCOME #1 1,500.00 53101 N.C. EXCISE TAX #1 -67,145.00 53201 REHABILITATION TAX #1 -839.00 53401 MIXED BEVERAGE TAX #1 -1,565.00 53501 MIXED B. TAX DEPT HUMAN RES. #1 -156.53 Total Income 288,176.58 Cost of Goods Sold 50000 Cost of Goods Sold 193,049.69 61200 INVENTORY ADJUSTMENT #1 -7,821.22 Total COGS 185,228.47 Gross Profit 102,948.11 Expense 60300 TRUCK DELIVERY COST 800.00 66000 Payroll Expenses 3,407.66 70101 • SALARIES -DUNN #1 29,085.50 70102 SALARIES - DUNN #2 15,770.25 70301 N.C. RETIREMENT FUND #1 3,569.15 70401 GROUP INSURANCE #1 4,836.71 70501 401 K FUND #1 1,235.00 70801 CASH VARIANCES #1 5.59 70802 CASH VARIANCES #2 4.17 70803 CC VARIANCES # 1 -59.71 70901 CREDIT CARD CHARGES #1 1,724,45 70902 CREDIT CARD CHARGES #2 2,072.36 71101 DEPRECIATION #1 2,345.00 71201 REPAIRS & MAINT. #1 183.00 71401 UTILITIES #1 543.36 71402 UTILITIES #2 1,362.07 71501 TELEPHONE #1 486.18 71502 TELEPHONE #2 223.51 72000 INSURANCE 1,767.34 72201 STORE SUPPLIES #1 773.91 72202 STORE SUPPLIES #2 485.55 72400 TRAVEL EXPENSES - Willis 1,377.78 72405 TRAVEL EXPENSES - Wilson 1,541.87 73001 OFFICE SUPPLIES #1 1,679.82 74201 DUES & SUBSCRIPTIONS #1 610.09 74401 BOARD EXPENSES - PHILLIPS 150.00 74402 BOARD EXPENSES - WARREN 150.00 74403 BOARD EXPENSES - SMITH 150.00 74405 BOARD EXPENSES-JONES 150.00 74407 BOARD EXPENSES -SMITH 150.00 75507 ALC. ED. DUNN AA GROUP 200.00 75601 VEHICLE EXPENSES #1 38.95 78101 BANK CHARGES #1 686.32 79301 SECURITY #1 658.27 79302 SECURITY #2 5,772.59 Total Expense 83,936.74 Net Income 19,011.37 Page 1 11:39 AM 04/20/26 Accrual Basis DUNN ABC Board Trial Balance As of March 31, 2026 Mar 31, 26 Debit Credit 10100 • Checking Acct - First Citizens 333,784.37 10300 NC CAPITAL MANAGEMENT TRUST 106,773.03 14500 A/R OTHER 0.00 12000 Undeposited Funds 0.00 10801 PETTY CASH #1 731.02 11001 Change Fund #1 7,000.00 13001 PREPAID INSURANCE #1 7,546.22 14100 INVENTORY #1 612,102.71 14200 INVENTORY #2 0.00 14700 ALL BREAKAGE 0.00 15001 LAND 191,571.78 15100 • LAND IMPROVEMENTS 127,687.58 16000 • BUILDINGS 640,892.38 17001 STORE EQUIPMENT #1 108,116.01 17002 STORE EQUIPMENT #2 40,879.90 17101 OFICE EQUIPMENT #1 14,043.56 17501 VEHICLES #1 11,963.65 19001 ACCUM. DEPRECIATION #1 455,415.70 19500 Deferred Outflows 85:837.00 20100 A/P - DISTILLERIES 487.95 20300 A/P - OTHER 19.90 20101 A/P - DISTILLERIES (TEMP) 0.00 20301 A/P - OTHER (TEMP) 1,032.91 21000 A/P - INSURANCE WITHHELD 0.00 21301 Aflac supplmental - Pre Tax 106.85 21401 Aflac Supplemental -Post Tax 53.55 22000 A/P - FEDERAL TAX WITHHELD 634.25 22100 A/P - FICA TAX WITHHELD 20.54 22200 A/P - NC INCOME TAX WITHHELD 1,200.88 22300 A/P - 401 K -EMPLER 73.64 22400 A/P - 401K - EMPLEE 3,122.22 22600 A/P - RETIREMENT - EMPLR 2,895.63 22700 A/P - RETIREMENT - EMPLEE 1,482.00 22900 MixBev Tax Payable HR 153.28 23000 Excise Tax Payable 68,220.00 23100 Mix Bev Tax -Rev Payable 1,533.00 23300 SALES TAX PAYABLE 22,148.10 23500 Retirement Payable 0.00 23600 GARNISHMENT 59.56 24000 Payroll Liabilities 1,087.07 26000 Net Pension Liability/Asset 122,426.00 25000 Deferred Inflows 144.00 31000 City of Dunn Profit Dist 212.500.00 32000 - Retained Earnings 1,719,902.58 40100 • LIQUOR SALES - STORE #1 1,034,499.88 40200 • LIQUOR SALES - STORE #2 1,961,684.42 40300 • LIQUOR SALES - MIXB BEVERAGE #1 228,940.04 41000 • INTEREST EARNED #1 4,816.85 42000 • OTHER INCOME #1 6,000.00 53101 N.C. EXCISE TAX #1 695,962.00 53201 REHABILITATION TAX #1 8,451.24 53401 MIXED BEVERAGE TAX #1 14,401.00 53501 MIXED B. TAX DEPT HUMAN RES. #1 1,435.75 50000 • Cost of Goods Sold 1,754,436.11 61200 • INVENTORY ADJUSTMENT #1 27,967.84 60300 • TRUCK DELIVERY COST 7,107.22 66000 • Payroll Expenses 27,780.59 66900 . Reconciliation Discrepancies 0.01 70101 • SALARIES - DUNN #1 233,520.14 70102 SALARIES - DUNN #2 129,936.01 70301 N.C. RETIREMENT FUND #1 28,028.91 70401 GROUP INSURANCE #1 35,980.19 70501 401 K FUND #1 9,698.61 70801 CASH VARIANCES #1 394.49 Page 1 11:39 AM 04/20/26 Accrual Basis DUNN ABC Board Trial Balance As of March 31, 2026 Mar 31, 26 Debit Credit 70802 - CASH VARIANCES #2 2.43 70803 CC VARIANCES # 1 59.71 70804 CC VARIANCES # 2 72.61 70901 CREDIT CARD CHARGES #1 16,887.36 70902 CREDIT CARD CHARGES #2 22,581.04 71101 DEPRECIATION #1 21,105.00 71201 REPAIRS & MAINT. #1 3,089.95 71202 - REPAIRS & MAINT. #2 7,269.45 71401 - UTILITIES #1 6,057.36 71402 • UTILITIES #2 11,651.35 71501 TELEPHONE #1 4,885.06 71502 TELEPHONE #2 2,165.91 71601 COMPUTER MAINT. #1 13,415.00 72000 • INSURANCE 26,588.06 72201 STORE SUPPLIES #1 4,760.47 72202 STORE SUPPLIES #2 6,868.34 72301 UNIFORMS #1 381.63 72400 • TRAVEL EXPENSES - Willis 2,021.60 72405 TRAVEL EXPENSES - Wilson 2,398.84 73001 OFFICE SUPPLIES #1 4,270.96 73002 OFFICE SUPPLIES #2 42.79 74001 PROFESSIONAL SERVICES #1 9,580.76 74201 DUES & SUBSCRIPTIONS #1 12,094.49 74202 DUES & SUBSCRIPTIONS #2 503.80 74401 BOARD EXPENSES - PHILLIPS 1,200.00 74402 BOARD EXPENSES - WARREN 1,200.00 74403 • BOARD EXPENSES - SMITH 900.00 74405 • BOARD EXPENSES-JONES 1,200.00 74407 BOARD EXPENSES -SMITH 1,200.00 75008 Alc. Ed. Coats -Erwin Mid School 1,625.00 75502 ALC. ED. TRITON HIGH SCHOOL 2,000.00 75503 ALC. ED. DUNN MIDDLE SCHOOL 1,500.00 75504 ALC. ED. Dunn Elem Harn. Prim. 1,725.00 75505 Alc. Ed. Erwin Elem. School 1,625.00 75507 ALC. ED. DUNN AA GROUP 1,800.00 75509 ALC. ED. OTHER 309.00 75510 ALC. ED. TEACHERS 1,450.00 75511 Alc. Ed. Coats Elementary 1,525.00 75601 VEHICLE EXPENSES #1 1,301.83 77001 INTEREST EXPENSE #1 72.00 78001 MISCELLANEOUS EXPENSE #1 200.00 78101 BANK CHARGES #1 7,411.92 78102 • BANK CHARGES #2 400.51 79001 LAW ENFORCEMENT #1 7,500.00 79301 SECURITY #1 8,243.16 79302 SECURITY #2 9,436.03 TOTAL 5,673,634.27 5,673,634.27 Page 2 Melissa R. Matti From: Charles Willis <dunn.abc@outlook.com> Sent: Wednesday, June 3, 2026 3:50 PM To: William Jr.; Justin B. Hembree; Billy R. Godwin; Cary E. McNallan Cc: Melissa R. Matti; Marc Phillips Subject: Dunn ABC, Board 027, Budget Message, Proposed Budget Ordinance-FY'26-'27, Public Hearing Attachments: FY-'26-'27 Prop Budget Ord-Message.pdf; Public Hearing Notice-'26-'27.pdf Good afternoon, The Dunn ABC Board met on Tuesday morning May 26, 2026 and received copies of the Proposed Budget Ordinance and Budget Message for FY 2026-2027. 1 have attached the documents for your review. Copies of the documents are also being provided to the North Carolina ABC Commission, as well as being posted on our website, dunnabc.com Notice of Public Hearing will also be on the website in addition to being advertised in our local newspaper. Please let me know if you need anything else at this time. Thank you, Charles Charles P. Willis General Manager Dunn ABC (HID) 8H2-B1308 1 CITY OF DUNN ALCOHOLIC BEVERAGE CONTROL BOARD Proposed Budget for Fiscal Year 2026 — 2027 May 26, 2026 RE: BUDGET MESSAGE To the Dunn ABC Board, The Annual Budget for the fiscal year July 1, 2026, through June 30, 2027 (FY26/27), has been prepared in accordance with N.C. General Statute 1813-702, "Financial Operations of Local Boards". The ABC Board determines, through adoption of an annual budget, the level of customer services that the ABC system will provide and the resources available for operations and capital projects. The primary drivers during the preparation of this budget included projected operating costs required to sustain acceptable levels of customer service during fiscal year 2026/2027 and the need to provide distributions to beneficiaries. The budget consists of projected revenues from liquor sales of $4.3 million, taxes related to income of $975 thousand, cost of sales of $2.325 million, and operating expense costs of $832 thousand. Highlights of Budget: • Retail sales are projected to decrease over FY 2025/2026. • Building and property renovations are planned for FY 2026/2027. • The assumption that some debt will be incurred for property acquisition for relocation of retail, warehouse and office space. Proceeds from sale of current location will be applied to any debt that is incurred. • Profit Distribution to the City of Dunn is projected to be $125 thousand. • Employee wages will be evaluated for increases and/or adjustments. • The ABC Board has four (4) full-time employees and eleven (11) part- time employees. Charles P. Willis aellejk__� General Manager: Dunn ABC Board PROPOSED BUDGET ORDINANCE DUNN ABC BOARD Fiscal Year 2026 - 2027 The following ordinance establishing revenues and setting expense appropriations is hereby proposed to be effective July 1, 2026, through June 30, 2027. Section 1. Estimated Revenues. It is estimated that the revenues listed below will be available during the fiscal year beginning July 1, 2026 and ending June 30, 2027 to meet the operational and functional appropriations as set forth in Section 2, in accordance with the chart of accounts prescribed by the state ABC Commission. Estimated Revenues: Sales $4,292,000 Other Income $12,300 Tota 1 $0 $4,304,300 Section 2. Appropriations. The following expenses are hereby appropriated for fiscal year 2026 - 2027 and are funded by the revenues made available through Section 1, herein. Appropriations: Taxes Based on Revenue Cost of Goods Sold Operating Expenses Salaries & Wages Payroll taxes Retirement & 401k Insurance - General & Group Board Member Per Diem Repairs & Maintenance Utilities Store/Office Supplies Travel / Vehicle Professional Fees & Dues Credit Card & Bank Fees Cash Over/Short Security Unemployment Insurance Contingencies Total Capital Outlay: Building Computer Debt Proceeds Store(s) Admin. Warehouse Law Enf. Store(s) Admin. Warehouse Law Enf. $0 $974,650 $2,325,000 Total $481,000 $36,700 $50,100 $67,700 $9,000 $29,500 $27,900 $19,400 $11,500 $24,800 $62,800 $0 $6,000 $200 $20,000 $846,600 Total $2,500,000 $5,000 -$2,505,000 $0 Debt Service/Lease: (define) Total Estimated Expenses City of Dunn Law Enforcement/Dunn PD Alcohol Education & Rehab. Other County/Municipal Other Distributions Total Distributions Working Capital Retained (Appropriated Fund Balance) Total Expense, Distribution & Reserve $ $ $ $ $0 $0 $ $ $ $ $0 $0 $0 $0 $0 $4,146,250 $125,000 $15,000 $18,050 $0 $0 $4,304,300 Section 3. Copies of this Proposed Budget Ordinance shall be furnished to the City of Dunn, the state ABC Commission, and to the Budget Officer and Finance Officer to be kept on file by them for their direction in disbursement of funds. Proposed to the Dunn ABC Board this 26th day of May, 2026. CITY OF DUNN ALCOHOLIC BEVERAGE CONTROL BOARD NOTICE OF PUBLIC HEARING FY 2026-2027 BUDGET The proposed Fiscal Year 2026-2027 budget for the City of Dunn Alcoholic Beverage Control Board has been presented to the Dunn ABC Board and is available for public inspection in the office of the General Manager located at Dunn ABC Store #1, 555 Jackson Road from 10:00 a.m. to 5:00 p.m. weekdays. The City of Dunn ABC Board will hold a Public Hearing on the proposed budget On June 23, 2026, at 8:00 AM at Dunn ABC Store #1, 555 Jackson Road, Dunn, NC, for the purpose of receiving comments on the proposed budget. People who wish to be heard are invited to make written or oral comments. Charles P. Willis General Manager, Dunn ABC DUNN HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING MINUTES MONDAY, APRIL 20, 2026 The Commissioners of the Dunn Housing Authority ("DHA") met in regular session at 817 Stewart Street, in Dunn, North Carolina, on Monday, April 20, 2026. Following "Words of Encouragement" by Eddie Draughon, the meeting was called to order at 4:00pm. Upon roll call, the following were Present: Board Chair Angela Inman, Board Vice -Chair Eddie Draughon, Commissioners Lois Dail, Sharon Gant and Secretary, Felicia Chester. Public Comment Period: No Public Comments were recorded. Approval of Meeting Minutes: A motion to accept the minutes from the regular February meeting and the special meeting also held in February, was made by Lois Dail and seconded by Eddie Draughon. Angela Inman Eddie Draughon Lois Dail Sharon Gant MINUTES OF THE REGULAR MEETING AND THE SPECIAL MEETING FOR FEBRUARY 2026 WERE READ AND ACCEPTED. Occupancy and Rent Report as of 04/20/2026: Dunn Housing Authority has a portfolio of 143 units. On the day of this meeting there were nine (9) vacant units. The total tenant revenue collected as of April 20, 2026, was $41,443.00. The Board had questions regarding renting the available units. The Executive Director explained the processes and elaborated on the measures being taken to rent the units moving forward. A motion to approve the O & R Report was made by Sharon Gant and seconded by Lois Dail. Angela Inman Eddie Draughon Lois Dail Sharon Gant OCCUPANCY & RENT REPORT WAS READ AND UNANIMOUSLY ACCEPTED. Review of Financial Balance Report: Financials for February and March were available for review. It was noted that higher fuel cost and increases in electricity contributed to higher utility bills. The Board discussed the Payment In Lieu of Taxes would be due soon and that it would more than likely be costly as well. A motion to approve the financial report was made by Eddie Draughon and seconded by Lois Dail. Nays Angela Inman Eddie Draughon Lois Dail Sharon Gant MOTION CARRIED. Communication: The Board approved the Charged Off listing that had been prepared previously. All agreed that the items listed were disposed of in the usual manner; by selling them as scrap metal. A motion to approve was made by Lois Dail and seconded by Sharon Gant. Aves Angela Inman Eddie Draughon Lois Dail Sharon Gant MOTION CARRIED. Resolution #2026-02 The Board was briefed on the status of the bathroom renovation project. Although the meeting with the contractor was scheduled for the following day after the board meeting, it was explained that a resolution to the issue with the unleveled floors would be found and the project would be completed soon. Name Changes for the properties was mentioned. It was encouraged as a way of continuing to improve our neighborhoods. More information will be forthcoming. The Board members were interested in hearing more about it in the future. The initial feedback was very positive and there will be more in the future. A proposed schedule change was presented to the Board. The proposed schedule would change the hours of operation from Monday through Friday to four (4) ten-hour days. This change would be beneficial to our tenants, especially those with schedules starting before 8:00am. All members were in favor of a trial run beginning on May 1, 2026. Adjournment: 2 A motion to adjourn the meeting at 5:10pm was made by Lois Dail and seconded by Eddie Draughon. All members agreed. 1 AnEeU Inman. Board Chair Ang Inman, Board Chair Felicia Chester, Secretary 3 DUNN HOUSING AUTHORITI BOARD OF COMMISSIONERS MEETING MINUTES MONDAY, MAY 18, 2026 The Commissioners of the Dunn Housing Authority ("DHA") met in regular session at 817 Stewart Street, in Dunn, North Carolina, on Monday, May 18, 2026. Following "Words of Encouragement" by Eddie Draughon, the meeting was called to order at 4:00pm. Upon roll call, the following were Present: Board Chair Angela Inman, Board Vice -Chair Eddie Draughon, Commissioner Lois Dai', and Secretary, Felicia Chester. Commissioner Sharon Gant was absent taking care of a personal matter. Public Comment Period: No Public Comments were recorded. Approval of Meeting Minutes: A motion to accept the minutes from the regular April meeting was made by Eddie Draughon and seconded by Lois Dai'. Angela Inman Eddie Draughon Lois Dail MINUTES OF THE REGULAR MEETING FOR APRIL 2026 WERE READ AND ACCEPTED. Occupancv and Rent Report as of 05/18/2026: Dunn Housing Authority has a portfolio of 143 units. On the day of this meeting there were seven (7) vacant units. The total tenant revenue collected as of May 18, 2026, was $42,326.00. The Board had questions regarding renting the available units. The Executive Director explained the processes and elaborated on the measures being taken to rent the units moving forward. A motion to approve the 0 & R Report was made by Lois Dail and seconded by Eddie Draughon. Angela Inman Eddie Draughon I Lois Dail OCCUPANCY & RENT REPORT WAS READ AND UNANIMOUSLY ACCEPTED. Review of Financial Balance Report: Financials for April were available for review. Since a member made a comment at the last meeting regarding the P.I.L.O.T, the members were made aware that the payment had been made. It was noted that the revenue collected was greater than the expenses for the month. A motion to approve the financial report was made by Lois Dail and seconded by Eddie Draughon. Aves Angela Inman Eddie Draughon Lois Dail FINANCIAL DATA REPORT WAS READ AND UNANIMOUSL Y ACCEPTED. RiicJnPcc- The Board was made aware of the tax obligation to Harnett County. It was explained that Dunn Housing Authority had participated in a program with Habitat for Humanity that allowed it to be exempt from paying property taxes on the vacant lot for a period often (10) years. The time limit for participating in the program had expired and property taxes would be due for the year 2026. It was explained to the Board that the time had come to upgrade the surveillance cameras at the properties. Initially the cameras were purchased and now the systems are outdated and will no longer be supported by the technical support. The Board was informed of the cost and that DHA would enter into an agreement to lease the updated equipment instead of purchasing it again. The new agreement would be effective July 111 A motion to approve was made by Eddie Draughon and seconded by Lois Dail. Angela Inman Eddie Draughon Lois Dail MOTION CARRIED. RESOLUTION NO. 2026-03 Communication: The name changes for the properties were mentioned, and it was noted that more information would follow in the future. 2 One of the members asked how the new schedule was going. The response was "very well". The employees liked the thought of working longer days to be off work on Fridays. The Board was briefed on the status of DHA's meeting with Central Builders and Stogner Architecture. After going to the units with unleveled flooring issues, it was agreed that Central Builders would make the necessary repairs where needed and that the 12-month warranty would give DHA time to determine if there were other issues to report. Adiournment: A motion to adjourn the meeting at 4:50pm was made by Eddie Ddraughon and seconded by Lois Dail. All members agreed. AfiteIM InrnA, �WNE irr Felicia Chester, Secretary 3