HomeMy WebLinkAboutAgenda 8-11-26 WSCITY OF
""gh DTUNN
wA&Y-wom"4y
CITY COUNCIL
WORK SESSION
6:30 pm, Tuesday, August 11, 2026
Dunn Municipal Building
401 East Broad Street
Dunn, North Carolina 28334
-AGENDA-
CALL TOORDER-William P. Elmore, Jr., Mayor
INVOCATION & PLEDGE OF ALLEGIANCE -April Gaulden, Mayor Pro Tern
CONSIDERATION & APPROVAL OF THE AGENDA
CONSENTAGENDA
Consent Agenda items are considered and approved by a single motion and vote. Any member of the City Council may
request an item be removed, without a motion or a vote, from the Consent Agenda for separate consideration. If an item
is removed from the Consent Agenda, that item will be placed under the Items for Discussion & Possible Action section of
the agenda.
1. Approval of July 16, 2026 Special Called Meeting Minutes
2. Approval of July 28, 2026 Regular Meeting Minutes
3. Internal Control Policy -ARP/CSLFRF Award
ITEMS FOR DISCUSSION & CALENDARING FOR AUGUST 25, 2026
4. Data Center Land Use Regulation Presentation
5. Ordinance Text Amendment (OA-26-01) -Tabled 7/28/26
6. Consideration of Various Budget Amendments
7. Credit Card Fees Discussion
REPORTS & UPDATES
8. City Manager's Report
9. Announcements
CLOSED SESSION
If called, the motion to enter closed session must cite the North Carolina General Statute
that authorizes the closed session.
ADJOURNMENT
The City of Dunn is an equal opportunity provider and employer.
Page 1 of 1
CITY OF
DUNN
® NORTH CAROLINA
01we, wmo� 6e#vl
Work Session, August 11, 2026
Agenda Item(s): Approval of July 16, 2026 Special Called Meeting Minutes
Presenter(s): Melissa Matti, City Clerk
Responsible Staff: Melissa Matti, City Clerk
Action Item: Yes
Attachment(s): 1) July 16, 2026 Special Called Meeting Minutes
Background
None
Budget Impact
None
Staff Recommendation(s)
Approval of Minutes as presented.
Suggested Motion(s)
Motion to approve July 16, 2026 Special Called Meeting Minutes as presented.
Page 1 of 1
City of Dunn
Special Called City
Thursday, July 16, 2026
6:30 p.m., Dunn Municipal Building
Minutes
PRESENT: Mayor William R Elmore Jr., Mayor Pro Tern April Gaulden, Council Members J.
Wesley Sills, Raquel McNeil, Billy N. Tart, Alan Hargis, and Dr. David L. Bradham.
Also present: CityManagerlustin Hembree, AssistantCityMariager
Director Cary McNallan, Administrative Support Specialist Christ
Tilghman Pope and City Clerk Melissa Matti, =
CALL TO ORDER le
Mayor Elmore called the Special Called Meeting of the Dunn Ci'Nj
p.m. The Mayor welcomed those in attenda-cevand stated that the
m',
was to consider revisions to the Fiscal Year 2029;027B,ui etresull
in State Legislation regarding
INVOCATION N
Council MemberJ. Weslev-Sills dative
y
BillyR. Godwin, Finance
Sweeney, City Attorney
PLEDGE OF ALLEGIANCE 'N � °
Council Member J. �V1%q, Sills pled in reciting the Pledge of Allegiance.
ncil to order at 6:30
Apse of the meeting
turn.recent changes
BUDGETAMENDMENTAN 'T RATE
Staff p .eserltee,proposed Amended $Ldget O dinance and explained that the primary
purpose of the amendmeilY was�to A djust the Property Tax rate back to $0.54 per $100 of
assessed valuation, reflecting the i{pOated County property valuations. Staff also noted a
minor administrative adiustmot related'to equipment purchases, rounding some fees to
account for thepeicnyshorta�' endrecommended approvalofthe amendment.
Council Discussion°, t
Council members disc�5ssedrte relationship between the proposed tax rate, the adopted
budget, and the County's recent property revaluation. Questions were raised regarding the
timing of the vote, specifically whether the Council was voting on the Budget itself or only
on the tax rate.
City Manager Hembree clarified that:
The Budget had previously been adopted using the schedule of property valuations
authorized by S889. The adopted Budget included a property tax rate of $0.60 per
$100 of assessed valuation.
• After adoption of the Budget, S474 became law which authorized use of the new
2026 schedule of values that increased the tax revenue to the City.
• State law allows adjustment of the adopted tax rate if revenues are substantially
different than anticipated and therefore the current amendment primarily adjusts
the tax rate back to $0.54 per $100 of assessed valuation.
• Additional property tax revenue generated by the updated property valuations would
be placed into Reserves rather than immediately appropriated for spending.
• Any future use of Reserve funds would require additional Council approval through a
Budget Amendment.
Council Member Alan Hargis expressed concern that tnbzrevised revenue projections
appeared to increase available funding by/appr ximate ly $1 million compared to earlier
budget discussions and he pointed out thatthejadopted budget ind cated the City could live
on the numbers in that budget. He then asked'- hh the increase was necessary and whether
the additional revenue should i
Council Member McNeil asked foY adt
expressed concern that that a vote ohs I
new numbers were adequate explaine
changes. City Manaj
funds were being rr
MCNallanfor further
Finance,Direetor<Mc
• O The increase
than inc
• The a
it she
Maintaining
en t6b noted
into `Reserve
ihatiom
n explained th
n even lower
explariat�riib.n?on the changed numbers and
etAmend ent would take place before the
sked for a rrioremdetailed explanation of the
achanirewas.th tax rate and the additional
3Ued upon Finance Director Cary
property valuations authorized by S474
n in Reserves until the Council determined how
rves is considered a sound financial practice and helps
prepare the City1or unexpected infrastructure repairs, emergency expenses, and
future obligations such as employee compensation adjustments and retirement
costs.
• Previous budgets had relied on reserve funds to balance operations, and the goalwas
to reduce that practice and strengthen the City's financial position.
Additional discussion included:
The uncertainty surrounding pending property tax appeals and how they could affect
future Revenues.
That some previous years' budgets, including last year's, was balanced using
Reserves.
• The City's target Reserve levels and maintaining financial stability.
Potential future uses of Reserve funds, including employee cost -of -living
adjustments and other Council priorities, which would be considered during future
budget workshops. ✓
Concerns about ageing infrastructure and
Repairs and Capital Improvements.
City Manager Hembree noted the transpare�ncy,c
the laws impacting the budget changed before'a
Following discussion, council members noted tf
would leave the previously advertised=higher Tax
with the Council preparing to vote onatlie fiscal y
Motion by Council
to adopt attachmi
motion passed una
ADJOURNMENT:
Motion byl:k
r
adjourn .Win fa%
The
Melissa R. Matti
City Clerk
rued
usly.
Dr. DavidiB"rad
B-1,
intain sufficient funding for
the budget proce"ssfor this year and that
J after the budget preption process.
tfailare toadopt the Amended tax rate
ate ineffect. The discussbn concluded
ar taxrate amendment.
d by Mayor Pro Tern April Gaulden
fiscal year. All in favor. The
by Mayor Pro Tern April Gaulden to
William R Elmore, Jr.
City Clerk
CITY OF
DUNN
® NORTH CAROLINA
Gt)lzera ce"e� 6e�"rs/
Work Session, August 11, 2026
Agenda Item(s): Approval of July 28, 2026 Regular Meeting Minutes
Presenter(s): Melissa Matti, City Clerk
Responsible Staff: Melissa Matti, City Clerk
Action Item: Yes
Attachment(s): 1)
Background
None
Budget Impact
None
July 28, 2026 Regular Meeting Minutes
Staff Recommendation(s)
Approval of Minutes as presented.
Suggested Motionlsl
Motion to approve July 28, 2026 Regular Meeting Minutes as presented.
Page 1 of 1
Dunn City Council
Regular Meeting
Tuesday, July 28, 2026,
6:30 PM - 8:10 PM, Dunn Municipal Building
Minutes
PRESENT: Mayor William P. Elmore Jr., Mayor Pro Tern April Gaulden, Council Members J.
Wesley Sills, Raquel McNeil, Billy N. Tart, Alan Hargis, and Dr. David L. Bradham.
Alsopresent., CityManagerlustin Hembree, Finance Director CaryNlcNallan, Chief of Police
Lynn Gay, Parks and Recreation Director Brian McNeill, Public Works Director Dwayne
Williams, Collections and Distribution Manager Billy Cottle, lNaferPlantManager Ian Stroud,
Senior Planner Stephanie Goodrich, Downtown Director Sandra ode Enforcement
Officer Alan Canady, Lt. Apelles Hart Administrative€Support Speetalist ChristySweeney,
City Attorney Tilghman Pope, and City Clerk Melissb "R. Matti. Assist ih- ity Manager Billy
Godwin was absent.`
CALL TO ORDER v
The City Council Regular Meeting of the City of Dunn wa called to order by Mayor William
P. Elmore, Jr. at 6:30 PM on Tuesday, July 28, 2026, at the D n Municipal Building, 401 East
Broad Street, Dunn, North Carolina 283 4
INVOCATION
The invocation was deliveredgby Apostlid„McArthur astor of God's House of Prayer
Church of DeLive rance..Dunn. NG'
PLEDGE OF ALLI
Mayor Pro Tern J.
CONSIDERATIOW APPROVAL OF THE AGENDA
M otion4tala p prove the agenda was'ade by Mayor Pro Tem Sills and seconded by Council
be Memr�au}den. The moip carrieanimously.
Retirement Resolution
Angelo McLean, CelneteFy Maintenance Supervisor
Parks and Recreationlector Brian McNeil read aloud the Retirement Resolution honoring
Angelo McLean upon his retirement effective August 1, 2026. The resolution recognized Mr.
McLean's 28 years of service with the City of Dunn, beginning February 16, 1998, as a
Cemetery Maintenance Worker. The resolution praised Mr. McLean's dedication, reliability,
and consistently positive demeanor.
Motion by Council Member J. Wesley Sills, second by Mayor Pro Tern April Gaulden to
adopt the Retirement Resolution in recognition and appreciation of Cemetery
Maintenance Supervisor Angelo McLean for his service with the City of Dunn from
February 16, 1998 to August 1, 2026. All in favor. The motion carried unanimously. A copy
of the Retirement Resolution for Cemetery Maintenance SupervisorAngelo McLean (R2026-19) is incorporated
into these minutes as Attachment#1.
Resolution
Designation ofJulyas Parks & Recreation Month
Mayor Elmore noted that while the regular meeting falls near the end of July, it remained
necessary for the Council to formally adopt the Resolution Designating July as Parks and
Recreation Month.
Motion by Council Member Dr. David Bradham, second by,Courcil Member Raquel
McNeil to approve the Resolution designating July as Pgrkand Recreation Month. All
in favor. The motion carried unanimously. A copy of the-Resolutio �cDesignating July as Parks &
Recreation Month (R2026-20) is incorporated into these minuteses,A achment#2
PUBLIC COMMENT PERIOD
No members of the public had signed up to s
without comment.
CONSENTAGENDA
Mayor Elmore presented Consent Age&
• Approval of June 23, 2026 Regular M
• Approval of June 30, 2026 Special C¢
• Request for Disposal of Records —
Recreation zv_�
• School
public comment period=was closed
which included four (4) items:
HR), Finance, and Parks &
Motion by Council MemheiiWan Hargis, second by Council Member Raquel McNeil to
approve all consen ,items. Alin favor. Mailon unanimously approved. Copies of the Request
for Disposgly� Recor s --"'Ad (City Clerk& HR Director), Finance, and Parks & Recreation and the School
Resource Officer Renewal Ajreement ikigco-Oorated into these minutes as Attachment #3.
ITEMS FOR01SCUSSION & POSSIBLE ACTION
Rezoning/Map' endment (CZ-26-01)
Cypress View Chiitlren's Home
PIN: 1506-76 7447.`000,,,,�
Public Hearing— op neat 6:38 p.m. — closed at 7:15 p.m.
Mayor Elmore opened the Public Hearing at 7:38 p.m. and called upon Planner Stephanie
Goodrich to present the staff report. Ms. Goodrich explained that the request sought to
rezone parcel PIN 1506-76-7447.000 on Susan Tart Road from R-7, Single Family
Conditional Districtto RM, Residential Multifamily Conditional District. The property, owned
by Cypress View Children's Home, is approximately 19.5 acres +/- of currently undeveloped
land, situated across from Betsy Johnson Hospital. Surrounding land uses include R-7,
Office and Institutional, and Rural District uses.
Ms. Goodrich explained that R-7 zoning was determined to be insufficient for the applicant's
proposal, which contemplates several large single-family style houses situated on a single
parcel —a configuration that functions more like multifamily than single-family residential.
She noted the request had been reviewed by the Planning Board twice: first as a straight
rezoning, which was approved, and again with conditions, which was also approved on July
7. Conditionswere specifically crafted to restrictthe propertyto uses directly supporting the
children's home, requiring any future change in use to come back for a new rezoning. She
also noted that a significant portion of the property lies within a floodway, naturally limiting
further expansion. /N
Don Currin of Cary Engineering, appearing on behalf of the applicant,'spoke in favor of the
request. He described Cypress View Children's Home as a nbq rofit 501(c)(3) organization
whose goal is to address a critical need for foster card3dapacity,11n�Harnett County and
surrounding communities. He explained that the property -was donated for this purpose by
a local developer. The proposed development would consist of nine( o:eLeven (11) single-
family detached homes on one parcel, designed to took and feel'°li e a.residential
subdivision, but structured as a single licensed esidential care facilt- Community
amenities such as a playground„ recreational facillx'les}and'shared office space were
planned to support fostering families and help reduce theTi h rate of foster family attrition.
Mr. Currin explained that the residentiahcare facility d slojation — applicable when a
facility houses more than six (6) residents - necessitate&multifamily or Office and
Institutional zoning. Conditions on the rezoning�precludeduses such as apartments and
townhomes, limiting developtpept to the specific use proposed.
Laura White, Exec tNez rector. of Cypress View Children's Home, also addressed the
Council. She clarified that,this model differs fro pical foster care licensing: rather than
individual households obta ni.ng ind�ual-lic+ nses. Cypress View would employ house
parents as staff, with;'the entire property operating under a single residential care facility
License. She drew comp ri ons to Sh
uriut Mountain Children's Home in Morganton and Black
Motam� home for Children, as weltas Big Oak Ranch in Alabama — facilities that have
operated 1frAitar models fo'r:,de cades. Ms. White emphasized that the homes would house
up to eight (8) children per dwelling, with full-time house parents, and would serve children
already in the foster care system in Harnett County, noting that there are currently one
hundred eighty 180 _children in foster care in the count with onl thirt -seven 37 licensed
foster homes. `ow,
Council members engaged in extended discussion. Mayor Pro Tern Sills and Council
Member Hargis questioned why the property could not be subdivided and developed under
the existing R-7 zoning with an HOA structure, which would preserve individual platting and
property tax generation. Mr. Currin and Ms. White explained that the State licensing
requirements for a residential care facility and the organization's 501(c)(3) ownership model
make a single -parcel, single -license structure necessary. Ms. Goodrich further clarified that
State regulations require Residential Care Facilities of this type to be located at least one-
half mile apart from one another, which would effectively limit the property to a single
Licensed facility, if the homes were individually platted.
Mayor Elmore raised the question of property tax exemption, noting that as a 501(c)(3)
organization, Cypress View would not be paying property taxes on what could be a $10
million development. Council Member Hargis acknowledged the project's merit but
expressed concern that the City had previously rezoned the property to R-7 with the
expectation of generating taxable single-family homes. Council Members also questioned
what would become of the property if the organization ceased operations. Mr. Currin stated
that homes already built could be subdivided into individuaVots-`at that point, and Ms.
Goodrich confirmed that any other development would require a new rezoning due to the
narrowly written conditions. A4 K;,
Mr. Currin offered to table the matter if Council
facilities in North Carolina.
No additional members of the public spoke.
p.m.
Decision �r
Following the close of the Public Hearing;-t�hea
was raised but failed to carry due to lack c
�>g
separation of the admirable goals of the organic
some members expressmC( neern that the �ni
future land use plan afid -that lrtgle-family hoi
structure would besthe:aporoDrO framework.
nal time to visit comparable
the public�#earing at 7:15
cil deliberated,A motion to table the item
econd. Codurrl discussion reflected a
rn frorn;_the land use considerations, with
amily'rezoning was inconsistent with the
s on individual plats within a subdivision
Motion by Council Member-J: Wesley" Sill, second by Council Member Dr. David
Bradham ,to deny�the map amendment request CZ-26-01, based on competent,
material ;and subst n ial evide c jn the record, finding the request inconsistent with
the future land use plan and not in the public interest. The motion carried 4-2, with Mayor
Pro Tem Apejili aulden and GouncitAember Raquel McNeil opposed.
Ordinance Text Amendme ";t'
(OA-26-01),
At the request of City management, this item was tabled to be placed on the agenda forthe
August workshop. Council Member J. Wesley Sills made a request during the discussion
that City staff also prepare a Draft Data Center Proposal for presentation at that same
workshop session.
Motion by Council Member Alan Hargis, second by Council Member J. Wesley Sills to
table Ordinance Text Amendment OA-26-01 to the August 11, 2026 Work Session. All in
favor. The motion carried unanimously.
Designated Truck Routes
Ordinance Amendment
Lieutenant Apelles Hart presented the Proposed Designated Truck Route Ordinance
Amendment, the culmination of an ongoing effort to update the City's outdated truck route
ordinance in response to neighborhood complaints about commercial truck traffic
damaging roads and creating safety hazards.
Lieutenant Hart described the proposed route, which generally follows US-301 north and
south and NC-421 east and west — roads already designated by NCDOT as an alternate
route for 1-95. He noted that the ordinance establishes all non -designated roads as no -
through -truck zones b default with exceptions for trucks makin g y p � yw g . eliveries or accessing
businesses along a given road. A separate list of roads with posted no -through -truck signs
was also included, reflecting streets where signs had already�bs n erected in response to
prior complaints. _ _ .
Regarding a previously raised request to includetCafolina
of the designated route, Lieutenant Hart confirmed that
NCDOT. Because those roads are State-maintai efoi
before they can be added to the City's Designated Truck=
initiated, and TomTom —the GPS provider used by com`r
already been updated for the currently approved route an
approval. 1
and Jonesboro Road as part
addition wasaR,process with
NCDOT appro� l is required
map. The process has been
at trucking companies — has
l update further upon NCDOT
Council Member Alan Hargis raised a concern .abo"ut hde $truck traffic on South Wilson
Avenue, describing trucks�gsi ,it as a shortcut to avoid the US-301/NC-421 intersection.
1 N �
Lieutenant Hart indicated thatzadtding a no -trough -truck sign to that location would be
bti handled through PucliVorks.Codncilmembe salso discussed ongoing issues with trucks
on Friendly Road, deliveries blacking East Broad Street in front of the Wayne Avenue
shopping center —,and the impact of-comrnereral truck routing on the City's infrastructure.
City Manager Justin e7RbredkRoted that a potential loading zone solution for the Broad
Street delivery issue was b ing evati9e as part of the Broad Street resurfacing project.
Motion by`M'ayor Pro Tem`April GaGlden, second by Council Member J. Wesley Sills to
approve,as pr sented the�5chedule of Designated Truck Routes and the Schedule of
No -Through -Tr 1WRoutes,�and to adopt the amendments to Sections 12-4 and 12-5 of
ff
the Dunn City Code."Allen favor. The motion carried unanimously. Copies of the Ordinance
Amending Article I of Chapt-er 12 of the City Code (02026-13) and the Schedule of Designated Truck Routes
and No-Through-TruckRotl es are incorporated into these minutes as Attachment#4.
Investment Policy
Finance Director Cary McNallan presented a draft Investment Policyforformal adoption. He
explained that the City has operated with investment parameters established during the
October 2023 approval of an investment management agreement with Kestrel Wealth
Management (formerly KS Trust Wealth). While those parameters had been used informally
as policy, a formal written policy is required on the semi-annual LGC-203 report submitted
to the state. The draft policy in the agenda packet was prepared to formalize and document
the City's existing investment practices.
Motion by Council Member J. Wesley Sills, second by Council Member Dr. David
Bradham to approve the attached City of Dunn Investment Policy and authorize the
dealers listed therein. All in favor. The motion carried unanimously. A copyofthe Cityof Dunn
Investment Policy is incorporated into these minutes as Attachment#5.
Close Out of the Pearsall Street Project
Finance Director Cary McNallan presented the Budget Amendments and Capital Project
Ordinances necessary to close out the Pearsall Street Stormwater Culvert Project, which
has been completed at a final cost of $2,599,392. The project was funded through a
combination of General Fund, Stormwater, Water, and Sew-er-,,funds. A significant
stormwater grant received from the State in early 2026,f�eed up the majority of the other
funding sources previously committed to the projecf '
Mr. McNallan proposed returning the excess°WatdT and
respective Reserves and redirecting the remaining¢ G
approximately $148,000 to fund the Codrington Park 6
and approximately $233,000 to establib-h a new Governr
fund to address deferred maintenance needs at City,
presented photographs taken during recent°heavy rain
Police Department and City Hall, illustrating theurgency
Representative Penny had-sedured$350,000J tlieStat I
Sewer fund contributions to their
;1-ieraF, Fund surptus as follows:
vnsend property purchase in full,
e ht Facility Improvement Project
ac itles.;�City Manager Hembree
event showing active leaks in the
)fsuch a fund. He also noted that
udgetfor City Hall improvements.
Motion by Council.Member AlanlHargis, second by Council Member J. Wesley Sills to
approve the Capital 0,06ject Ordinances and related Budget Amendments for the
Pearsall Street Culvert P ojct, . odring;on Park Improvements Project, and the
Government"Facitl y`Improverrient Prolect: All in favor. The motion carried unanimously.
Copies of, the Capital P jecL Ordinance tAmendment IV- Pearsall Street Stormwater Culvert (02026-14),
Capital Prolact Ordinance Air�'i dment iLCodrington Park Improvement Project (02026-15), Capital Project
Ordinance GdyernmentalFacilrylmproverpentsProject(02026-16),and8udgetAmendment(BA-2026-2)is
incorporated iRtcithese minutes asAttachment#6.
REPORTS & UPDATES
City Manager's Report, .�
City Manager Hembreet presented photographs documenting active water leaks at the
Police Department and City Hall, taken during recent heavy rainfall, to provide context for
the newly established Facility Improvement Project fund. He also reported that
Representative Penny had secured $350,000 in State Budget funds designated for City Hall
improvements.
City Manager Hembree also reported that an ongoing stormwater investigation near South
Magnolia Street and East Divine Street had uncovered failing catch basins and deteriorated
clay pipe, necessitating a street closure for public safety. Public Works Director Dwayne
Williams confirmed that crews had begun excavating to assess the extent of the damage,
with contractor involvement anticipated for repairs. Mr. Williams noted that brick catch
basins with no masonry had been found, indicating infrastructure of considerable age. The
streets were expected to remain closed for several more days while work continued.
City Manager Hembree introduced Sandra Osmond, the City's newly hired Downtown
Director, who had been on the job for approximately two (2) weeks and had already begun
meeting with Broad Street merchants, attending her first Downtown Development Board
meeting, and engaging on plans for the downtown pocket park.
City Manager Hembree also distributed information from the County Manager regarding a
proposed joint meeting between the City Council and t, amett County Board of
Commissioners, and asked Council members to review the proposed dates and provide
their availability.
Financial Report
Finance Director McNallan presented the Fin
through June 2026. Cash and Investments tots
the same pointthe prioryear, with the increase
and grant reimbursements. The City retained
Construction account. Property Tax Co ectiion
budgeted estimate of $5.93 million, rep ese tir
were $340,000, up $27,000 over the same pei
payments expected in August and September
totaled $213,000, compadid 6 $148,000 the1
available by the end of Sept mbar:.
3rickal Repot for the endof thefiscal year
ed $1�3.7 million, compared to'10 million at
largely�dttribut ble to Capital Project activity
$2.4 million in the East Side Pump Station
through Mai totaled $5.98 million against a
g a surp slight ti�ss�Shces Tax receipts forApril
iod rmthe priorlar, with two (2) additional
Building'Pernait Revenues for the fiscal year
rior year,-, inal Fund Balance figures will be
Departmental Reports & ProjectUpdates
Code Enforcement, �f
Code Enfokement Abfficer Alan Canady reported on two (2) previously referenced
complaints that had been resolved�The,North Powell Avenue access road serving the Belk's
Department Store had beer repairecJfollowing extended coordination with the property
owner an rants. Anus nce complaint regarding 109 Jackson Street, referred by a
Council member yvas resol3ed within three (3) days of notification.
Officer Canadyrepoe`d�o6the status of the yard waste contamination compliance program
with Republic Service8?fn the first week, twenty-two (22) addresses were identified as non-
compliant. The second week saw that number reduced to ,fourteen (14), with only two (2)
repeat addresses between the two (2) periods. Officer Canady indicated the following
week's list was expected to be lower still. He noted that some violations appeared to be
willful— instances of carts filled substantially with regular household trash —while others
may have been inadvertent. A related issue of residents removing Republic's notification
labels from carts was identified.
Mayor Pro Tem April Gaulden raised the persistent issue of trash carts being left at the curb
well beyond the required removal period. City Manager Hembree acknowledged the breadth
of the problem and indicated staff were exploring enforcement strategies, including posting
notices on carts left out too long, while considering practical challenges related to the scale
of enforcement required.
Mayor Elmore requested that Officer Canady also monitor the placement of unauthorized
clothing donation collection boxes throughout the City, reminding staff that a permitting
ordinance governing such boxes has been in place for several years. A copy of Ordinance
Amendment OA-07-21 to regulate the location, approval process, and maintenance of unattended donation
bins approved by Dunn City Council on December 14, 2021 is incorporated into these minutes as reference
information. r
Parks & Recreation
Parks and Recreation Director Brian McNeil provided an ui
The Girls' Softball Team won their District Tourname
Tournament, representingthe district competitively befd"ri
Baseball Team earned runner-up honors at the State Tou
provision taking two (2) North Carolina teams to the Nati
in the World Series held in Laurel, Mississippi —the first
team finished in the top six (6) in the tournament before be;
McNeil highlighted community connections made at tT
alumna who attended every game in d Dunn,High Scho
encountered in Florida. 4
Other Reports & Uodates
City Manager Hembree r
availability regarding''thl
s..-I
Commissioners, notmg3tt
Mayor Elmore announced t
• July30�2026—Ribbon(
Ho su across from Boje
• August 62026—Ribbo
N«
• August 11, 2026 City
• August 25, 2026 7City,
te'on summerAll-Star activity.
and competed at the State
)ing eliminated. The 10U Boys'
ment and; as a result of a bid
N'_Cp
it Tournament; earned a berth
ppearance since 2018. The
alliminated by Florida. Director
)urnament, including a Dunn
hirt and another Dunn native
ed the request for Council Members to respond regarding
iosed joint meeting with the Harnett County Board of
irit.y had proposed'an evening meeting with dinner provided.
Atowing upcoming events and meetings:
ngfor Br,ik's Auto Repair, located behind the Triangle Waffle
es. from 1:00 PM to 2:00 PM.
tting for Rumble Pizza in Downtown Dunn at 10:30 AM.
ncil Workshop at 6:30 PM.
ncil Regular Meeting at 6:30 PM.
ADJOURNMENT ,"
Motion by Council Member Alan Hargis and seconded by Mayor Pro Tern April Gaulden
to adjourn. All in favor. The motion carried unanimously.
The meeting was adjourned at 8:10 p.m.
William P. Etmore Jr.
Mayor
Attest:
Melissa R. Matti
City Clerk
CITY OF
DUNN
® NORTH CAROLINA
Mwe,w~a4A4 ky6uxl
Work Session, August 11, 2026
Agenda Item(s): Internal Control Policy - ARP/CSLFRF Award
Presenter(s): Cary McNallan, Finance Director
Responsible Staff: Cary McNallan, Finance Director
Action Item: Yes
Attachment(s): 1) Internal Control Policy: ARP/CSLFRF Award document
Background
On April 11, 2023, the City Council approved the following policies that were required for the
American Rescue Plan Act (ARPA).
• Record Retention Policy
• Eligible Use Policy
• Allowable Cost Policy
• Nondiscrimination Policy
• Conflict of Interest Policy
Last week, the City was notified by the North Carolina Department of Environmental Quality
that we are required to provide a policy on Internal Controls. A review of our files found an
"Internal Control Narrative" document that was issued in June 2022. Although this document
does provide a good description of our internal controls, it does not have the detailed
information that is required by the Federal Government. Therefore, staff is requesting that the
City Council adopt the attached "Internal Control Policy: ARP/CSLFRF Award" document. This
policy was developed from a template provided by the NC School of Government and revised
accordingly to match the City's procedures.
Staff Recommendation(s)
Request that the City Council approve the attached policy.
Budget ImDact
If not approved, the City risks the possibility of non-compliance with grant requirements which
could result in forfeiture of ARPA grant funds.
Suggested Motionfsl
Motion to approve the attached Internal Control Policy: ARP/CSLFRF Award document.
Page 1 of 1
City of Dunn ir NC
Internal Control Policy: ARP/CSLFRF Award
CONTENTS
Definitions... I
Policy Overview and Purpose ... 2
The Green Book Recognizes Five Components
of Internal Control: Control Environment, Risk
Assessment, Control Activities, Information
and Communication, and Monitoring ...2
I. Control Environment.
2. RiskAssessment...3
Risk Identification ... 3
Uniform Guidance Compliance
& Risk Identification ... 3
Risk Analysis... 3
Risk Response... 4
3. Control Activities.:. 4
4. Information and Communication...5
S. Monitoring ... 5
Definitions
Financial Management, 2 CFR § 200.302... 6
Segregation of Duties:... 6
Documentation:... 6
Reporting:... 7
Reconciliation:... 7
Eligibility (See Award Terms & Conditions for
ARP/CSLFRF Eligibility Requirements)... 7
Allowable Costs/Cost Principles, 2
CFR §§ 20OA00 to 200.476... 8
Period of Performance (See Award
Terms and Conditions)...9
Procurement, Suspension & Debarment,
2 CFR §§ 200.317 to 200.327...10
Property Management, 2 CFR §§ 200.310 to 200.316...12
Program Income, 2 CFR § 200.307...14
Management refers to employees who have direct responsibility for the day-to-day
operations of the entity, including the implementation of internal controls. For the purposes
of this policy, "management" includes: City Manager, Assistant City Manager, Finance
Director, Deputy Finance Director, Revenue Manager, Human Resource Director, City Clerk,
all department heads, and all accounting staff.
Oversight Body, as referenced in the Government Accountability Office's Standards for
Internal Control in the Federal Government, refers to an appointed body designated to
perform oversight at the direction of the governing board. The oversight body of a local
government is, by default, the governing board (City Council).
Dunn Internal Control Policy: ARP/CSLFRF Award - Page 2
Policy Overview and Purpose
Internal control is a process effected by an entity's oversight body, management, and other
personnel that provides reasonable assurance that the objectives of an entity will be achieved.
This policy outlines the internal control process established by the City of Dunn to provide
reasonable assurances that the unit will expend ARP/CSLFRF award funds in compliance with
governing laws and regulations. This document is adopted in accordance with the following
directive from U.S. Treasury's Compliance and Reporting Guidance: "Per 2 CFR Part 200.303,
your organization must develop and implement effective internal controls to ensure that funding
decisions under the ARP/CSLFRF award constitute eligible uses of funds, and document
determinations."'
Internal Control Framework:
The City of Dunn's internal controls are modeled after the internal control framework set forth in
the Government Accountability Office's Standards for Internal Control in the Federal
Government (the "Green Book"). As described in the Green Book, Management is responsible for
establishing and maintaining the internal control system in compliance with the duties outlined
in this policy. The Oversight Body's primary role is to ensure management performs its internal
control responsibilities. However, every employee bears some responsibility for the internal control
process.
The Green Book Recognizes Five Components of Internal Control:
Control Environment, Risk Assessment, Control Activities,
Information and Communication, and Monitoring
The City of Dunn understands that each component must be present and functioning for the
internal control process to operate at the optimal level. The responsibilities tied to each of the
components are discussed below.
1. Control Environment
The control environment is the foundation for all other components of internal control,
providing discipline and structure. Management values integrity, ethics, and competence in all
operations, including the administration of federal awards. Management communicates and
reinforces its expectations throughout the organization. Examples of management's commitment
to internal controls over expenditures of ARP/CSLFRF funds include, but are not limited to, the
following:
• Management demonstrates a commitment to integrity and ethical values through its
leadership, communications, personnel practices, and daily actions.
• Management conducts ongoing risk assessments to identify internal control weaknesses
that may negatively impact the proper administration of the ARP/CSLFRF award.
• Management is committed to educating itself and staff on the compliance requirements tied
to the administration of the ARP/CSLFRF award.
• Management adopts policies necessary to ensure compliance with the Uniform Guidance
and the ARP/CSLFRF award terms and conditions.
1. U.S. Department of the Treasury, Compliance and Reporting Guidance, p. 8 (updated Sept. 20,
2022).
Dunn Internal Control Policy: ARP/CSLFRF Award - Page 3
2. Risk Assessment
Management is committed to identifying and managing the risks that may arise during the
administration of the ARP/CSLFRF award. The risk assessment component of internal control
involves management evaluating the risks the entity faces that could negatively impact its ability
to achieve its objectives. These objectives include:
• Operational Objectives: All assets are appropriately safeguarded against risks of fraud,
theft, loss, or abuse.
Reporting Objectives: Finance systems and processes produce accurate and reliable
financial reporting for federal award expenditures. The City of Dunn's Schedule of
Expenditures of Federal Awards (SEFA) is complete and accurate.
Compliance Objectives: Ensure ARP/CSLFRF awards funds are expended in compliance
with the award terms and conditions, federal and state law, and U.S. Treasury guidance.
Risk Identification
Management shall identify risks that may impair the City of Dunn's ability to achieve its
objectives. Management shall focus its risk assessment on areas of opportunity for employees
to commit fraud. Specific areas and types of risk include:
• rapid growth in operations,
• changes in personnel,
• organizational restructuring, such as centralizing or decentralizing,
• new activities or service areas,
• new or revised information systems,
• new technologies in service delivery or information systems,
• changes in the operating or regulatory environment, and
• new or updated accounting and/or financial reporting practices.
Uniform Guidance Compliance & Risk Identification
There are specific risks that arise in the administration of a grant award. Management will
identify areas of risk that may impair the City of Dunn's ability to comply with the ARP/CSLFRF
award's terms and conditions and/or applicable state and federal law and regulations.
Specifically, the City of Dunn will evaluate risks of non-compliance in the following compliance
areas:
• Eligibility,
• Allowable Costs/Cost Principles,
• Period of Performance,
• Financial Management,
• Property Management,
• Procurement,
• Subrecipient Monitoring, and
• Program Income.
Risk Analysis
Management shall determine the potential severity of liabilities associated with the risks
identified by weighing the likelihood of occurrence against the degree of impact.
Dunn Internal Control Policy: ARP/CSLFRF Award - Page 4
Likelihood x impact = Risk Priority
After rating each risk for likelihood & impact, multiply to identify which risks are highest priority to mrarol for.
Risk Priority
5
5
10
15
20
25
4
4
3
12
16
20
3
3
6
9
12
15
2
2
4
6
S
10
1
1
2
3
4
5
1
2
3
4
1 5
Impact
'Priorityale
Low 1 to 4
Moderate Stoto9
Hi h 10 19
very High 20+
Risk Response
Management shall review the results of the risk analysis and determine whether to implement
control activities to mitigate risks. Management will respond to identified risks in one of three
ways:
• accept the risk,
• reduce the risk by implementing control activities to help prevent or detect issues, or
• avoid the risk by not pursuing certain activities.
Management shall consider the relative cost of implementing controls versus the benefit(s)
offered in deciding whether to mitigate risk(s) through the implementation of control activities.
When possible, control activities will be implemented to mitigate risks that rate "High" or "Very
High" on the Likelihood/Impact scale.
3. Control Activities
Control activities are the actions taken by management to respond to risks that may prevent
the entity from achieving its objectives. The internal control activities are either preventative or
detective. The City of Dunn uses a variety of control activities that support strong internal
controls, including, but not limited to the following:
• written policies and procedures,
• segregation of duties: separating authorization, custody, record -keeping, and reconciliation
functions,
• authorizations to undertake projects/programs/expenditure,
• reconciliation of accounts and records,
• documentation and record -keeping,
• physical controls, including locks, physical barriers, and security systems to protect physical
assets,
• IT controls, including passwords, access logs, and firewalls to protect sensitive data and
restrict access to electronic data and files,
• staff training, or
• a combination of the above.
Dunn Internal Control Policy: ARP/CSLFRF Award - Page 5
4. Information and Communication
The City of Dunn communicates accurate and quality information to internal staff and
personnel and to external stakeholders and community members. Communication plays an
integral role in the internal control system by helping to promote transparency regarding the
use of public funds. Management shall be responsible for communicating internal control
processes to those employees directly involved in finance and/or grant administration.
Management will communicate its policies, procedures, and internal controls through
various handbooks, programs, training, and electronic communication.
Information regarding pertinent policies, processes, and control activities will flow down,
across, and up the organizational structure. Internal control deficiencies should be reported
upstream, with serious matters reported immediately to top-level management and/or to the
governing board. Employees are required to report any critical issues within the internal control
system to management as soon as possible after the discovery.
To ensure transparency regarding the use of ARP/CSLFRF funds, the City of Dunn shall
communicate quality information to community members and external stakeholders. The
communication channels may include:
The City of Dunn maintains a separate capital projects report that is presented to the
governing board members on a quarterly basis. This report provides revenues,
expenditures, and encumbrances for each project.
All City project budgets are included inthe annual adopted budget for the City.
Governing board members and management are willing to engage directly with community
members and answer questions via email and/or provide updates during regularly scheduled
meetings.
S. Monitoring
The City of Dunn shall conduct ongoing monitoring of the internal control system to identify its
strengths and weaknesses. Internal and external audits will be conducted pursuant to federal
and state law. These audit processes will test the effectiveness of internal controls over federal
and state awards.
Dunn Internal Control Policy: ARP/CSLFRF Award - Page 6
Internal Controls & Uniform
Guidance Compliance
Financial Management, 2 CFR 200.302
Overview:
Each unit must have a financial management system in place to satisfy the requirements set forth
in 2 CFR 200.302. A unit may rely on existing accounting processes and procedures, provided
such processes adequately track the obligations and expenditures of ARP/CSLFRF funds.
Objectives:
Ensure compliance with the following requirements set forth in 2 CFR 200.302, as follows:
1. Track all federal awards received and related expenditures
separately for each federal program.
2. Provide accurate, current, and complete financial data to enable
the disclosure of the results of each federal award.
3. Identify the source and application of funds (i.e., the system must
be able to track authorizations, obligations, and disbursements, and
tie any expenditures to eligible uses of ARP/CSLFRF funds.
4. Maintain control over, and accountability for, all funds, property, and other assets.
5. Compare budgeted amounts with actual expenditures.
6. Expenditures must be supported by the City of Dunn's written
procedures for determining the allowability, reasonableness, and
allocability of costs.
Control Activities:
• A recommended practice is to set up a grant project ordinance to separately account for and
track expenditures of ARP/CSLFRF funds.
• Utilize a financial management system that meets the standards outlined in 2 CFR 200.302.
Segregation of Duties:
Duties and functions related to financial reporting are segregated to ensure no one person has
control over all parts of a financial transaction.
Documentation:
Documentation of financial transactions is complete and accurate and facilitates tracing the
transaction from authorization and initiation through disbursement.
• The Finance Director shall ensure that, at a minimum, accounting records evidencing
authorizations, obligations, and expenditures of ARP/CSLFRF funds are created and
retained according to record retention requirements.
• Source documentation is retained, including paid invoices, payrolls, time and attendance
records, contracts, and subaward documents.
Dunn Internal Control Policy: ARP/CSLFRF Award - Page 7
Reporting:
The Finance Director shall prepare monthly reports for the governing board that includes
updates for grant project expenditures and a comparison of budget to actuals.
Reconciliation:
General ledger and subsidiary ledgers used to account for the receipt and disbursements of ARP/
CSLFRF funds are reconciled monthly against account balances by someone who does not have
record-keeping/bookkeeping functions.
Communication & Monitoring.
The Finance Director is responsible for communicating the financial management
requirements and associated control activities to the appropriate personnel. All employees
within the finance and accounting office have responsibility for internal controls, including
the ongoing assessment of the effectiveness of internal control activities over the financial
management system.
.•.•'�f�:7i"RA
The City of Dunn is responsible for ensuring ARP/CSLFRF funds are expended on eligible
projects and programs. The process for making eligibility determinations is described in the City of
Dunn's Eligible Use Policy.
Objectives:
1. Ensure that supported projects and programs under the ARP/CSLFRF are
eligible under one of the expenditure categories. (Eligible uses include projects
identified in the Final Rule that fit within one of the four eligible use categories:
COVID-19/Negative Economic Impacts, Revenue Replacement, Premium Pay,
Investment in Necessary Broadband and Water/Sewer Infrastructure.)
2. Document eligibility review and project determinations.
3. Establish processes to ensure funds are not expended on ineligible uses. (Prohibited uses
include bulk deposits into pension funds, debt services, replenishing financial reserves,
the satisfaction of settlements and judgments, support for programs that undermine the
effort to stop the spread of COVID-19, and any use that would violate state or local law.)
Control Activities:
• Eligible Use Policy: The City of Dunn has adopted an ARP/CSLFRF Eligible Use Policy
that explains the eligible uses of ARP/CSLFRF award funds and includes the City of Dunn's
process for reviewing and documenting eligibility determinations.
• Authorization: The Finance Director has reviewed applicable Treasury guidance, including
the Final Rule, and has trained staff to conduct initial eligibility reviews for all project or
program requests.
Dunn Internal Control Policy: ARP/CSLFRF Award - Page 9
• Documentation: Each department is encouraged to use the SOG's Sample Eligibility
Worksheet to document the review process. This documentation is retained for the five-year
record retention period. Finance Director is responsible for overseeing compliance with
documentation and record retention requirements.
Communication & Monitoring:
Management will communicate eligibility requirements and project determinations internally
to staff and externally to community members and stakeholders. Management will periodically
review a sample of eligibility determinations to ensure that documentation is being maintained
and that the supported projects are eligible.
Allowable Costs/Cost Principles, 2 CFR §§ 200.400 to 200.476
Overview:
The Uniform Guidance Cost Principles provide guidance on how to charge specific items of cost
to a federal award. A written Allowable Cost/Cost Principles policy is required for compliance with
2 CFR 200 § 202.
Cost items charged using Revenue Replacement ARP/CSLFRF funds are subject to an allowable
cost review. Cost items charged under the COVID-19/Negative Economic Impacts and
Infrastructure Investment categories are subject to additional compliance requirements,
including the Selected Item of Cost review. See Final Rule FAQ 13.15.
Objectives:
1. Ensure all costs charged to the federal award are allowable as defined
in the Uniform Guidance, Subpart E--Cost Principles.
2. Consistently apply local policies to both federally financed
and non -federally financed activities.
3. Treat costs consistently as direct or indirect costs.
4. Adequately document evidence of allowable cost review and
other compliance requirements as necessary.
5. When applicable, appropriately charge indirect costs using either the Negotiated
Independent Cost Rate Agreement (NICRA) or the de minimis rate of 10
percent.
Control Activities:
Policy: The City of Dunn has adopted an Allowable Cost/Cost Principles Policy, as required
by 2 CFR 200.302.
Segregation of duties: When possible, duties are segregated between those who initiate,
approve, and record financial transactions.
Training: Management trains staff to conduct an allowable cost review in compliance with
the UG Cost Principles. (See Cost Principles Policy for specific compliance requirements.)
Dunn Internal Control Policy: ARP/CSLFRF Award - Page 9
• Documentation: The Finance Director shall ensure that documentation evidencing
compliance with the Cost Principles is created and maintained through December 31, 2031.
At a minimum, cost items will be reviewed for allowability prior to being charged to the
federal award.
Communication & Monitoring:
Management shall ensure that staff is adequately trained to recognize allowable costs and
associated compliance requirements for each eligibility category. Management shall periodically
test the control activities by reviewing a sample of cost items charged to the ARP/CSLFRF award
for allowability. Management will also test whether costs are charged to the proper project codes
within the grant project ordinance.
Period of Performance
Overview:
The Period of Performance covers the period of time the City of Dunn may obligate and expend
ARP/ CSLFRF funds. ARP/CSLFRF funds must be used for costs incurred between March 3,
2021, and December 31, 2024. For a cost to be incurred, the funds must be obligated (e.g.,
contract executed/pre-audit stage). All obligated funds must be expended by December 31,
2026. Any unspent award funds must be returned to the Treasury.
Objective:
Ensure that all obligations and expenditures are incurred during the ARP/CSLFRF award's
period of performance.
Control Activities:
• Management reviews obligation dates to ensure that all obligations are made for costs
incurred between March 3, 2021, and December 31, 2024.
• Management trains staff to review obligation and expenditure dates on contracts, or when
performing eligibility and allowable cost reviews.
Communication & Monitoring:
Management shall communicate pertinent dates, including the period of performance, to
any staff responsible for obligating or expending federal award funds. Periodic testing by
management will ensure that all obligations are incurred between March 3, 2021, and December
31, 2024.
Dunn Internal Control Policy: ARP/CSLFRF Award - Page 10
Procurement, Suspension & Debarment, 2 CFR §§ 200.317 to 200.327
Overview:
Expenditures of ARP/CSLFRF funds under the revenue replacement category are exempt from
federal procurement. When expending ARP/CSLFRF funds in other expenditure categories, the
unit is required to adopt written procurement procedures and follow all federal procurement
rules outlined in the Uniform Guidance (2 CFR §§ 200.318-200.327) as well as its own internal
policies. Where established local or state rules are more strict than federal rules, the recipient
must follow the most restrictive rule.
Objectives:
The Purchasing Department recognizes it must satisfy the minimum federal procurement
requirements, as follows:
1. Adopt a written procurement policy that considers the procurement
standards in § 200.318, which includes bidding contracts in compliance
with federal bidding thresholds, oversight of contractors' performance,
and maintaining records to document the history of procurements.
2. Provide full and open competition in conducting procurements, consistent
with the standards outlined in § 200.319 and § 200.320, which allow for
non-competitive procurements only in limited circumstances.
3. Comply with the requirements of § 200.320(a) when using the micro -
purchase and small purchase methods of procurement.
4. Use the sealed bids method for procurement contracts exceeding the simplified threshold.
Utilize the competitive proposals method when sealed bidding is not possible.
5. Ensure noncompetitive procurement methods meet the
conditions set forth under § 200.320(c).
6. Verify that a contractor is eligible by reviewing the
suspended and debarred list on SAM.gov.
7. Restrict access to sensitive contractor information, such as
Social Security numbers or federal tax ID numbers.
Dunn Internal Control Policy: ARP/CSLFRF Award - Page I I
General Procurement Control Activities:
• Procurement Policy: The City of Dunn maintains documented procurement procedures that
are consistent with the standards outlined in §§ 200.317 through 200.327. This policy
contains detailed processes and control activities for procurements made with federal
funds.
• The City Council must approve certain types of contracts (see Purchasing Policy for details).
• The Finance Director is responsible for monitoring and documenting the performance of a
contract for compliance with contract terms, conditions, and other specifications.
• Prenumbered purchase orders are used.
• A pre -audit certificate that is signed by the [finance officer or designated deputy] is attached
to all purchase orders, invoices, or other contract obligations.
• Micro -purchases may be awarded without soliciting competitive quotes if a determination
is made that the price is reasonable.
• Cost items shall be reviewed for allowability pursuant to the review process set forth in the
Allowable Cost Policy.
• The Finance Director is responsible for identifying qualified vendors and rotating purchases
made under the micro -purchase threshold among different suppliers. Management shall
periodically check compliance with this control activity.
• The Finance Director shall verify that contractors are not on the suspended or debarred list.
A screenshot of the record check shall be maintained.
• Access to sensitive contractor information, such as Social Security numbers or federal tax
ID numbers, is restricted.
Segregation of Duties:
• Duties are segregated between authorization, custody, record -keeping, and reconciliation.
• The person who sets up new contractors in the accounting system or edits information
on existing vendors is not the same as the person approving the checks that are
written.
• Reconciliations are performed by an employee who does not have record -keeping duties.
• Invoices and other supporting documentation are thoroughly reviewed prior to the
invoice being approved (e.g., compare the receiving or packaging slip against the
authorization).
Documentation:
Documenting the history of procurements is a top internal control priority for the City of Dunn.
All request personnel shall be trained on documentation and record retention policies.
• Bid documents shall reflect all steps in the procurement process, including:
A bid specifications and proof of advertisement (if required),
A rationale for the selected method of procurement,
d bid submissions,
Dunn Internal Control Policy: ARP/CSLFRF Award - Page 12
A evaluation criteria,
A basis for contractor selection or rejection,
A justification for lack of competition, when applicable,
A basis for award cost or price, and
A contract agreement, including required UG contract clauses.
• Source documentation relating to procurements must be retained and should include
sufficient details to support the transaction, including:
A cost and quantity of items purchased,
A model numbers,
A purchase orders with and pre -audit certificates, and
A personnel who authorized the sale, if applicable.
• All records shall be maintained for a period of five (5) years after the ARP/CSLFRF period of
performance (through December 31, 2031).
Communication & Monitoring:
Management shall ensure purchasing and finance staff understand federal procurement laws.
Additional training shall be provided as necessary. Management will periodically review
purchase orders and contracts to ensure that all charges are accounted for in the period in which
the cost occurred and fall within the period of performance.
Property Management, 2 CFR §§ 200.310 to 200.316
Overview:
Except for property, supplies, or equipment acquired using revenue loss funds, the unit must
follow the applicable provisions of the Uniform Guidance regarding property standards (2 CFR
200.310-316), subject to the requirements set out in FAQ 13.16.
Per FAQ 13.16, during the period of performance, the City of Dunn may use property,
supplies, or equipment purchased with ARP/CSLFRF funds for a purpose other than the purpose
for which the initial purchase was made, provided the new use is consistent with another eligible
use. After the period of performance, the City of Dunn is more limited in how it may use the
property purchased with ARP/CSLFRF funds.
Objectives:
1. Ensure real property, personal property, supplies, and equipment are
used in compliance with the UG property standards (2 CFR 200.310-
316), and subject to the requirements set out in FAQ 13.16.
Dunn Internal Control Policy: ARP/CSLFRF Award - Page 13
2. Ensure documentation is maintained to substantiate any determination
on whether the use of an asset is authorized for a particular purpose
during and after the award period of performance.
3. Establish adequate safeguards to prevent loss, damage, or theft of property.
4. Follow adequate maintenance procedures to keep equipment in good condition.
5. Ensure proper disposition of real property and equipment in
accordance with § 200.311(c) and § 200.313 (e).
Control Activities:
• Insurance Coverage: Purchase equivalent insurance coverage for real property and
equipment as is provided to other property owned by the City of Dunn. 2 CFR §
200.310.
• Property Management Policy: City of Dunn has adopted a Property Management
Policy that sets forth property management processes, including procedures for record -
keeping, reporting, and disposition responsibilities for real and personal property.
• Real Property Reporting: The Finance Director shall oversee the annual reporting
requirements for any real property or personal property acquired with federal awards funds.
Standard Form 429 shall be used to report real property, and the Standard Form 428 shall
be used to report tangible personal property, including equipment.
• Equipment Management: The City of Dunn has procedures for managing equipment,
whether acquired as a whole or in part under a federal award, until disposition takes place.
The City of Dunn will, at a minimum, meet the following requirements:
A Maintain equipment records that include a description of equipment, serial number/
model number, source of funding, acquisition date, location and condition of equipment,
unit acquisition cost, and final data, including date of disposal, sales price, and method
used to determine fair market value. § 200.313(d).
A Ensure adequate safeguards to prevent loss, damage, or theft of property. Such safeguards
may include attaching property tags to federally owned equipment that includes the
FAIN. Any loss, damage, or theft will be investigated. § 200.313(d).
A Regular maintenance will be performed to keep the property in good condition.
A A physical inventory of equipment will be performed, and the results reconciled with the
property records, at least once every two years.
A If the City of Dunn is authorized or required to sell equipment, proper sales procedures will
be used to ensure the highest possible return.
Communication & Monitoring:
Management will train employees to understand the various compliance requirements set
forth in the Uniform Guidance property management standards. Periodic testing of established
controls shall be performed to ensure that all reporting and property management requirements
are satisfied for both real property and equipment.
Dunn Internal Control Policy: ARP/CSLFRF Award - Page 14
Program Income, 2 CFR § 200.307
Overview:
Program income relates to gross income earned from expenditures of federal awards, such as
income from fees for services performed, the use or rental of property acquired with program
funds, and for the sale of items fabricated under the program. Program income is only
triggered when income will be earned under the COVID- I 9/Economic Impacts Category or
for income earned on a water/wastewater infrastructure project. When program income is
earned, it is added back to the total ARP/CSLFRF award allocation.
Objectives:
1. Separately track and account for program income during the
ARP/CSLFRF award's period of performance.
2. Expend program income on eligible projects and programs during the period of
performance (program income is added to the total ARP/CSLFRF award).
Control Activities:
• On a monthly basis, recorded program income is reconciled with supporting
documentation, such as loan ledgers and other accounting records.
• Program income is separately tracked and accounted for within the grant project ordinance.
• Management ensures program income is added to the total ARP/CSLFRF award and used to
support eligible projects and programs.
• Individuals who collect cash or other receipts are different from those who deposit receipts,
generate invoices, record general ledger activity, and reconcile bank statements.
Communication & Monitoring:
Management shall identify program income requirements and communicate compliance
requirements to staff. Management shall periodically review accounting records to ensure
program income is separately accounted for during the award period of performance.
CITY OF
DUNN
® NORTH CAROLINA
Wlwoc6�
Work Session, August 25, 2026
Agenda Item(s): Data Center Land Use Regulations Presentation
Presenter(s): Will Deaton, Interim Planning Director
Responsible Staff: Will Deaton, Interim Planning Director
Stephanie Goodrich, Senior Planner
Action Item: No
Attachment(s): 1) Basic Staff Recommendations
2) Current Regulations
3) Maps of 1-100 with over 10 acres
Background
At Council's request, staff has been researching best practices, existing ordinances around the
State and surrounding States to identify where Dunn's LIDO could be amended to address the
growing concerns citizenry has regarding Data Centers.
This discussion item is to request the Dunn City Council for guidance on additional regulations
that they would like to have added to our Unified Development Ordinance.
Staff Recommendation(s)
City Staff recommends the following:
1. Adding a definition for Data Centers to the existing ordinance and revising the existing Use
Table in the Unified Development Ordinance.
2. Determine if Data Centers would be allowed by right in certain zoning classifications or if
by Special Use Permits.
3. Determine if our current regulations for development in a particular zoning Classification
are sufficient or if additional Developmental Standards would be recommended by
Council for this use.
Budget Impact
None
Page 1 of 2
STAFF RECCOMENDATIONS ON DATA CENTERS
1. Recommended Definition:
"A facility, campus of facilities, or array of interconnected facilities used by an entity or other
business enterprise for the primary purpose of storing, retrieving, managing, and processing
digital data, which has a peak monthly electricity demand of 10 megawatts or greater."
- This definition is based on the Senate Bill 730: Ratepayer Protection Act, as presented
to the NC State Senate in May 2026, the exception being that the megawattage on the
proposed state bill is 100 Megawatts, where ours is much more restrictive. Forscale, the
average kilowatts peak per month of one house is less than a thousand per month, so a
10Megawatt consumption rate per month would equal to or greater than ten single
family homes.
2. Allow in 1-100 with Supplemental Standards
Supplemental standards:
Add to Heavy Industrial Uses Article 5.10
G. DATA CENTERS
1. All such uses must be located at a minimum distance of 1,000 feet from Schools, the
Residential Zoning Districts, MXU, C-1, C-4 or O & I districts and any parallel conditioning
zoning district to those districts.
2. Must employ a closed -loop water or liquid cooling system* that will result in a
minimization of water consumption for cooling systems to the maximum extent possible.
A certification must be provided that the facilitywill employ a closed loop cooling system at the
time it applies for approval of a Special Use Permit for the Data Center, as well as an annual
certification to include a third -party verification, that the system remains operational, with
documentation of any water losses, chemical treatment processes, and fluid replacement
volumes.
*Defined as "a sealed cooling process in which the same water or coolant circulates
continuously with the minimum withdrawal from or discharge into municipal systems,
groundwater sources, or surface waters."
3. All establishments shall be engineered to maintain a maximum noise threshold of 60
dBA or less at all times, as measured from the lot line.
4. Maximum height for a Data Center Facility shall be 35" and setbacks from front, rear
and side is 50'.
Page 2 of 2
Data Centers Discussion
Presented by Will Deaton, created by City personnel
1. All such uses must be located a minimum distance of 500 feet from the Residential
Zoning Districts, MXU, C-1, C-4 or 0&1 districts and any parallel conditional zoning district
to those districts.
2. All establishments shall be maintained so as not to create environmental hazards (such
as oil or gas leaks or spills) that pose a threat to ground or surface water quality, air quality,
wildlife and/or humans.
3. Vehicular access to the site shall be provicbd on a thoroughfare of suitable industrial
capacity as determined by the Administrator -and/or any required Transportation Impact
Analysis.
4. In addition to the buffer yard requirements provided in Article 6 General Development
Standards, all outdoor storage areas must be screened with the use of:
a. Solid -wood fence, or fabricated metafence, each with shrub plantings placed
around the enclosure that grow as high, or nearly as high, as the fence to provide an
attractive separation, or
b. Brick fence, brick/split face block, or decorative block (plantings not required).
Based on Adjacent uses
Trees: 3/1000 Square Feet or 2/1000 Square feet if not residential
Shrubs: 12/100 sf or 8/1000if not residential
Evergreens would be 75% or 50% if not residential
1-100 is either a 40' (Residential) or 20' for non-residential
Buffer yard Requirement
Resource Protection Act"
action Act" 2026
ort, January 2026
ses, Adopted November 2025
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CITY OF
DUNN
® NORTH CAROLINA
Mer&w~uu4 6Vburl
Work Session, August 11, 2026
Agenda Item(s): Ordinance Text Amendment OA-26-01 —Tabled 7/28/26
Presenter(s): Stephanie Goodrich, Senior Planner
Responsible Staff: Stephanie Goodrich, Senior Planner
Action Item: Yes
Attachment(s): Proposed UDO Amendments
Background
OA-26-01 is a proposed Ordinance Text Amendment that addresses several areas in the Unified
Development Ordinance that needed clarification and technical edits.
At the July 7, 2026, meeting The Planning Board unanimously voted to recommend Approval.
At the July 28, 2026 Regular City Council Meeting, the item was tabled. Staff will provide an
overview of the proposed amendments and ensure Council concerns are addressed.
Budget Imgact
None
Suggested Motionlsl
None
CITY OF
DUNN
® PLANNING AND INSPECTIONS
102 N Powell Ave • PO Box 1065 - Dunn, North Caroline 28335
(910) 230-3505 •Citvo(Dunn.cra
OA-26-01- Proposed Amendment to
Unified Development Ordinance
City Council Meeting Staff Report
July 28, 2026
Planning Meeting: July 7, 2026
Recommendation: Approval
Request: Seven proposed text amendments to address minor technical corrections and a suggested
process change to the Unified Development Ordinance.
The City of Dunn is proposing various amendments to the Unified Development Ordinance (UDO). Most
of the proposed amendments consist of minor technical corrections and editorial revisions intended to
improve clarity and ensure consistent terminology throughout the ordinance.
One proposed change would result in a process change relating to the review of major subdivisions and
final plats. The proposed change would simplify the subdivision and final plat review process.
Staff Analysis and Commentary:
1. Technical Change:
Article 3, Section 3.01.B.3 - Review Authority Table
The current Review Authority Table contains two sets of numerical references, which may cause
confusion for users. One set refers to the Notes section of the table, while the other refers to Section
3.01.B.5-Public Notice.
Staff recommend several changes to improve clarity:
1. Relocate the text of Note (1 ] into Section 3.01.B.5.d -Neighborhood Meeting. Consolidating
the information in a single section makes the standards easier to find and apply.
2. Add a reference to Section 3.01.B.5 within the "Public Meeting Notice" header in the table.
This will help direct users to the appropriate section of the UDO and reduce confusion.
Note added to top to refer to Public Notice and Footnote on table removed and language
to be added to the Neighborhood Meeting section
2. Process Change:
Article 3, Section 3.01.B.3- Review Authority Table
The only proposed process change relates to the review and approval of Major Subdivisions and Final
Plats. The ordinance currently requires the Planning Board to take final action on Major Subdivisions,
while City Council is required to take final action on Final Plats.
Both Major Subdivisions and Final Plats are administrative in nature, as approval is based on compliance
with specific standards outlined in the ordinance. Because these requests do not involve discretionary
decision -making, review by the Planning Board or City Council may create confusion by suggesting that
public comment could influence the outcome or prevent approval of the request. However, these
applications must be approved if all applicable ordinance standards are met.
Staff recommend: Revision of the ordinance to designate the Administrator as the final review
authority for both Major Subdivisions and Final Plats.
Streamlining development review was listed as goal for the City. The Technical Review
Committee reviews both of these types of developments, which would go to either the
Planning Board or Council only as a consent item, therefore final review being
administrative does not offer less regulation on a project, but does decrease the amount of
time before final approval.
3. Technical Change:
Article 3, Section 3.03.D—Certificate of Compliance
The Unified Development Ordinance (UDO) outlines the final step prior to occupying a structure following
new construction or renovation. This step includes final inspection of the structure and site and the
issuance of a certificate of completion. The terms "compliance" and "completion" are currently used
interchangeably within this section.
Staff recommend: Replacing all instances of "completion" with "compliance" within this section
to ensure alignment with existing processes.
Minor change in language for consistency
4. Technical Change:
Article 5, 5.06—Table of Uses Research and Development Services
The "Research and Development Services" use is currently listed twice in the Table of Uses —once as an
institutional use and once as an industrial use. The permitted zoning districts differ depending on the
category: as an institutional use, it is allowed in the MXU, C-1, C-3, 1-10, and 1-100 districts; as an
industrial use, it is permitted only in the I-10 and 1-100 districts.
The UDO does not currently include a specific definition for Research and Development Services. The
use is only referenced within the definitions of Light Industrial and Professional Services.
Staff recommends: Removal of the Land Use Table line item under institutional and assembly
uses, and keep the line item on Industrial Uses. Research and Development categories that do
not fall under the Industrial category can be approved by staff interpretation based on the nature
of the R & D.
Minor change in use table to avoid conflicting information
5. Technical Change:
Article 5, 5.06—Table of Uses - Correctional Institutions
Much like the "Research and Development Services" use type, the "Correctional Institutions" use type
does not currently have a specific definition. A lack of definition creates a challenge for administrators
and an unclear pathwayto compliance for applicants.
Staff recommend: Creation of a definition and subsequent update the use type within the Table
of Permitted Uses.
Change in use table language to reflect an added definition in article 11
6. Technical and procedural change:
Article 5, Section 5.07.D.1 & 2—Single-family Attached and Two -Family (Duplexes)
This section of the LIDO currently sets standards for the location of garages and parking areas for single-
family attached and two-family dwellings. Two standards apply: one for lots between 40 and 50 feet
wide, and another for lots under 40 feet wide. These standards aim to encourage parking at the rear of
principal structures. While this approach is ideal, it is often not feasible, particularly in infill development
scenarios.
Staff recommend: Removal of both sections to reduce barriers to new development and redevelopment.
Current State Laws do not allow a municipality to regulate garage door placement for residential
structures.
Delete section in order to conform to state regulations allowable in NCGS 160D-702.
7. Technical Change:
Article 5, Section 5.07.F.1.c— Home Occupation
The UDO establishes standards for operating a commercial business as an accessory use within a
residential structure (home occupation). One of these standards allows an accessory structure to be
used in support of the home occupation. The UDO currently states: "Accessory structures may be used
to support the home occupation. The area of the accessory structure used to support the home
occupation shall be a maximum of 25% of the gross floor area of the accessory structure."
Staff recommend: Revision of the section to allow a maximum of 25% of the gross floor area of
the primary structure to align with Section 5.07:F.1.e which already states 25% of the primary
structure.
Minor change in language to fix a typo.
8. Technical Change:
Article 11: Definitions
Staff have drafted a definition as follows:
Correctional, Probation, or Parole Facility: A public or private establishment utilized for the confinement
rehabilitation, or post -conviction orpost-release supervision of persons convicted of a criminal offense.
Minor Change to add a definition
Reasonableness and Consistency
Per North Carolina General Statute 160D-605, governing boards must adopt a consistency and
reasonableness statement, brief statement describing whether its action is consistent or inconsistent
with an adopted comprehensive or land use plan. Forthis reason, the City Council must consider
whetherthe proposed request is reasonable and consistent with the City's adopted plans.
The City of Dunn's Land Use Plan and the Imagine Dunn Strategic Vision Plan are meant to inform policy
and guide development decisions made by the City. Goals and recommendations regarding
development are outlined in the Land Use Plan and the Strategic Vision Plan. The City of Dunn adopted
its Land Use Plan in 2022. When making decisions pertaining to growth and development, the City should
utilize this plan, as it serves as a guide to inform development decisions made by the City. The Imagine
Dunn Strategic Vision Plan was adopted in 2021. This Strategic Vision Plan outlines the City's
overarching vision for its future and should also be considered when making decisions related to
development.
Examples:
The proposed ordinance amendment is reasonable and consistent with the City of Dunn's Land Use Plan
and the Imagine Dunn Strategic Vision Plan. The followinggoals and recommendations put forth in these
plans are aligned with proposed ordinance amendment:
Land Use Plan
Policy 1.3: Review and amend the Unified Development Ordinance and Future Land Use Map as needed
to ensure consistency with the City's goals, policies, and strategies.
Policy 1.4: Review existing development design guidelines and incorporate applicable updates into the
Unified Development Ordinance.
Imagine Dunn Strategic Vision Plan
PGA: Create a Comprehensive Plan and update Development Ordinances.
One of Dunn's Planning for Growth goals included in the Strategic Vision Plan is to create a
comprehensive land use plan and update development ordinances.
Example:
The proposed ordinance amendment is consistent with this goal's intent. Dunn's Land Use Plan was
adopted shortly after the Strategic Vision Plan in accordance with this goal, and now an update to the
Unified Development Ordinance is being proposed to align with the Land Use Plan.
ATTACHMENTS
1. Review Authority Table
2. Land Use Table page 5-5
3. Land Use Table page 5-6
AN ORDINANCE MAKING VARIOUS AMENDMENTS TO THE UNIFIED DEVELOPMENT
ORDINANCE OF THE CITY OF DUNN, NORTH CAROLINA
The Unified Development Ordinance of the City of Dunn is hereby amended as follows:
SECTION 1A: 3.01.B.5 — Public Notice
Section 3.01.B.5 reads as rewritten:
d. Level 4 — Neighborhood Meeting
Prior to any legislative or evidentiary public hearing, the applicant shall conduct a
neighborhood meeting. Neighborhood Meetings shall only be required when the
requested zoning change is from a residential district to a higher density residential or a
non-residential district. This meeting will allow the applicant to explain the proposed
project and to be informed of the concerns of the neighborhood and surrounding
property owners. The neighborhood meeting shall be held at least fourteen (14) days
prior to the Planning Board meeting. A meeting notice shall be sent to property owners
and Homeowner Associations within 200 feet of the proposed development. The notice
shall be sent by first class mail and be postmarked at least 10 but not more than 25 days
prior to the date of the neighborhood meeting. A copy of the notice shall also be sent to
the City of Dunn. The letter shall contain a summary of the proposed development, the
neighborhood meeting should be held within a reasonable distance of the proposed
project. The meeting shall be held at a reasonable time giving the nearby property
owners an opportunity to attend. A summary of the meeting in the form of meeting notes
or minutes along with a list and contact information for all attendees shall be submitted
to the Planning Board and City Council for their review at all subsequent legislative or
evidentiary hearings.
SECTION 1B: 3.03.11) —Certificate of Compliance
Section 3.03.13 reads as rewritten:
D. CERTIFICATE OF -GGMRt 1�COMPLETION
a. Issuance of a Certificate ofpliaase Completion shall be required prior to the
occupancy or use of any new construction and re -occupancy or re -use of any
renovation/rehabilitation in the development regulation jurisdiction. Certificates of
Gempliaaee Completion ensure that a completed development project has
complied with all the applicable requirements of this Ordinance and all other
applicable federal, state and local regulations. Certificates of Completion must be
signed by the Administrator to certify compliance with applicable regulations.
SECTION 1C: 5.07.D - Single -Family Attached and Two -Family (Duplexes)
Section 5.07.D. reads as rewritten:
SECTION 1 D: 5.06 —Table of Permitted Uses
Section 5.06 reads as rewritten:
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SECTION 1 E: 5.07.F.1.c —Home Occupation
Section 5.07.F.1.c reads as rewritten:
F. Home Occupation
1. General Standards
c. Accessory structures may be used to support the home occupation. The area
of the accessory structures used to support the home occupation shall be a
maximum of 25% of the gross floor area of the rinci al
structure.
SECTION 1F: Article 11— Definitions
Article 11 is amended to add the following:
Correctional. Probation. or Parole Facility: A public or private establishment utilized for
the confinement, rehabilitation, or post -conviction or post -release supervision of persons
convicted of a criminal offense.
SECTION 2: The City Council hereby adopts the following Statement of Consistency and
Reasonableness for the proposed ordinance amendments:
The proposed ordinance amendments of OA-25-01 is reasonable and consistent with
the City of Dunn's Land Use Plan and the Imagine Dunn Strategic Vision Plan. The
following goals and recommendation put forth in these plans are aligned with
proposed ordinance amendment:
Land Use Plan
Policy 1: Manage future growth and encourage quality development through
implementation of the Strategic Vision Plan, the Land Use Plan, the
Unified Development Ordinance (UDO), and other plans and
regulations adopted by City Council.
Objective 1.3: Review and amend the Unified Development Ordinance
and Future Land Use Map as needed to ensure consistency with the
City's goals, policies, and strategies.
Objective 1A Review existing development design guidelines and
incorporate applicable updates into the Unified Development
Ordinance.
Upon review of the Unified Development Ordinance, the City is proposing an ordinance
amendment to modify certain language. This is consistent with the above policies from
the Land Use Plan, as they both recommend reviewing the Unified Development
Ordinance and existing development guidelines and updating them as needed to align
the ordinance with the City's goals.
Imagine Dunn Strategic Vision Plan
Strategy PGA: Create a Comprehensive Plan and update Development Ordinances.
One of Dunn's Planning for Growth goals included in the Strategic Vision Plan is to create
a comprehensive land use plan and update development ordinances. The proposed
ordinance amendment is consistent with this goal's intent. Dunn's Land Use Plan was
adopted shortly after the Strategic Vision Plan in accordance with this goal, and now an
update to the Unified Development Ordinance is being proposed that aligns with the Land
Use Plan.
SECTION 3: If any section, sentence, clause, or phrase of this Ordinance is for any reason
held to be invalid or unconstitutional by the decision of any court of competent jurisdiction,
such decision shall not affect the validity of the remaining portions of Ordinance.
SECTION 4: That this ordinance shall become effective immediately upon its adoption.
Duly adopted on this 251 day of August, 2026, while in a regular meeting.
William P. Elmore Jr.
Mayor
City of Dunn, North Carolina
ATTEST.
Melissa Matti
City Clerk
City of Dunn, North Carolina
CITY OF
DUNN
® NORTH CAROLINA
xAaere cs'~U'U4 6ey&rl
Work Session, August 11, 2026
Agenda Item(s): Various Budget Amendments
Presenter(s): Justin Hembree, City Manager
Cary McNallan, Finance Director
Responsible Staff: Cary McNallan, Finance Director
Action Item: Yes
Attachment(s): 1) Attachment A- Salary and Wage Adjustment Resolution
2) Attachment B-City Employee Position Classification Resolution
3) Attachment 131 - City Wage Chart
4) Attachment C - Capital Project Ordinance for FY27 Equipment
5) Attachment C1 - Reimbursement Resolution for FY27 Equipment
6) FY27 Budget Amendment
Background
On July 16, 2026, the City Council adopted a Revised FY27 Operating Budget, which
appropriated reserves in various funds and did not include funding for any adjustments to
employee compensation.
The attached resolutions include changes in the employee compensation package and
proposed vehicle and equipment purchases for FY27. Based on these proposed resolutions,
the attached budget amendment includes various increases in line -item expenses to cover
adjustments to employee compensation, equipment purchases, and other department
needs for FY27. These amounts would be shifted from budgeted fund reserves to specific
expense accounts.
Staff Recommendatio»>ns�
Staff are recommending that the attached budget amendment be approved.
Budget Impact
The overall operating budget for the General Fund will increase by $7,065. The funds for
Water, Sewer, and Stormwater Operations will remain the same since these amendments
only shift amounts between expenditure accounts.
Suggested Motion sl
Motion to approve the three (3) attached Resolutions, the attached Equipment Capital
Project Ordinance, and the attached FY27 Budget Amendment.
Page 1 of 1
Mayor
William P. Elmore, Jr.
CITY OF Mayor Pro Tern
DUNN J. W Gaulden
" Council Members
J. Wesley Sills
® NORTH CAROLINA Raquel McNeil
'
Billy7art
401 E Broad St . PO Box 1065 . Dunn, North Carolina 28335 Alan Hargis
(910) 230-3500 • CityoiDunn.org Dr. David L. Bradham
City Manager
Justin Hembree
ATTACHMENT B
RESOLUTION ADOPTING CHANGES TO THE CITY OF DUNN POSITION
CLASSIFICATION AND PAY PLAN
WHEREAS, the City Council has adopted a comprehensive Position Classification and Pay Plan
for the City of Dunn; and
WHEREAS, the City Manager has submitted a budget amendment for FY 2026-27 based on the
proposed Position Classification and Pay Plan; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DUNN RESOLVES:
Section 1. The Position Classification and Pay Plan is hereby set as shown in Attachment 13-1.
Section 2. Merit or Performance Pay provided to eligible and non -probationary City employees
in FY 2026-27 will range from 0.0% to 1.5%.
Section 3. All other provisions of the Position Classification and Pay Plan remain unchanged.
Section 4. The Human Resources Director shall follow the Position Classification and Pay Plan
for the FY27 budget fiscal year based on the effective dates.
Section 5. This resolution shall become effective August 8, 2026.
This, the 11'" day of August, 2026.
Attest:
Melissa R. Matti
City Clerk
William P. Elmore, Jr.
Mayor
Wkere eommunil begins!
Attachment B-1
Effective 818126
CITY OF DUNN
Wage Chart
Effective from 8/8/2026 to 06/30/2027
Minimum
Midpoint
Maximum
FLSA
Annual
Annual
Annual
Grade
JOB TITLE
Status
Salary
Salary
Salary
3
Custodian - Facility Attendant
N
$ 31,756
$ 41,284
$ 50,811
Recreation Center Attendant
N
4
$ 33,345
$ 43,349
$ 53,352
5
Park Maintenance Worker
N
$ 35,012
$ 45,516
$56,020
6
Grounds Maintenance Worker
N
$ 36,764
$ 47,793
$ 58,821
Recreation Center Assistant
N
Utility Customer Service Representative
N
7
Facilities Maintenance Assistant
N
$ 38,602
$ 50,183
$ 61,763
•
Park Maintenance Supervisor '""
N
Fleet Maintenance Assistant
N
8
Administrative Support Specialist I
N
$ 40,532
$ 52,692
$ 64,851
Animal Control Technician
N
Equipment Operator
N
Grounds Maintenance Crew Leader
N
Police Cadet
N
Street Maintenance Worker
N
Utility Maintenance Mechanic
N
9
Administrative Support Specialist ll
N
$ 42,560
$ 55,328
$ 68,096
Animal Control Supervisor
N
Payroll Specialist
N
Police Records Specialist
N
".
Senior Utility Maintenance Mechanic
N
treet Maintenance Worker II
N
10
Evidence Technician
N
$ 44,687
$ 58,093
$ 71,499
Facilities Maintenance Specialist
N
Fleet Maintenance Mechanic
N
Grounds Maintenance Supervisor
N
Lift Station Trainee
N
Planning Technician
N
Senior Equipment Operator
N
Wastewater Treatment Plant Operator I/Trainee
N
Water Treatment Plant Operator Trainee
N
.
Accounting Specialist- -
N
$ 46,921
$ 60,998
$ 75,074
Athletic Program Manager '¢
N
Code Enforcement Officer
N
Executive Assistant to the City Manager
N
Page 1 FIR Wage Chart FY27 Proposed
Mayor
William P. Elmore, Jr.
CITY OF Mayor Pro Tern
DUNN J. W den
Council Members
J. Wesley
Sills
4® NORTH C A R O L I N A Raquel McNeil
Billy Tart
401 E Broad St . PO Box 1065 . Dunn, North Carolina 28335 Alan Hargis
(910) 230-3500 • CityofDunn.org Dr. David L. Bradham
City Manager
Justin Hembree
ATTACHMENT A
SALARY AND WAGE ADJUSTMENT RESOLUTION FOR FY 2026-27
BE IT RESOLVED that the City of Dunn City Council hereby approves the following
as an amendment of the Annual Budget for FY 2026-27:
Section 1: All eligible City permanent, full-time, elected, and appointed employees
that have started their City employment before July 1, 2026, shall receive an across-
the-board market adjustment salary increase of 2.00%.
Section 2: All eligible City permanent, full-time, elected, and appointed employees
that have started their City employment before July 1, 2026, shall receive an across-
the-board cost of living salary increase of 3.00%.
Section 3: All eligible City temporary and part-time, non -law enforcement,
employees shall receive an hourly wage increase of 5.00%.
Section 4: This resolution shall become effective for the entire pay period related to
the August 28, 2026, pay date.
This the 111 day of August, 2026.
Attest:
Melissa R. Matti
City Clerk
William P. Elmore, Jr.
Mayor
W&re communifi 6!y1nS!
Attachment B-1
Effective 818126
CITY OF DUNN
Wage Chart
Effective from 8/8/2026 to 06/30/2027
Minimum
Midpoint
Maximum
FLSA
Annual
Annual
Annual
Grade
JOB TITLE
Status
Salary
Salary
Salary
Laboratory Analyst
N
Lift Station Mechanic (certified)
N
Plant Maintenance Technician
N
Program Coordinator
N
Street Maintenance Supervisor
N
Utility Maintenance Crew Leader
N
Wastewater Treatment Plant Operator II
N
Water Treatment Plant Operator C
N
12
Fleet Maintenance Supervisor
N
$ 49,267
$ 64,047
$ 78,827
GIS Technician
N
Senior Center Manager
N
Senior Plant Maintenance Technician
N
Wastewater Treatment Plant Operator III
N
Water Treatment Plant Operator B
N
13
Building Code Inspector I
N
$ 51,731
$ 67,250
$ 82,769
CALEA Professional Standards Manager
N
Utility Compliance Specialist
N
Wasterwater Treatment Plant Operator IV
N
Water Treatment Plant Operator A
N
14
Accountant
N
$ 54,318
$ 70,612
$ 86,906
Building Code Inspector II
N
Chief Plant Maintenance Technician
N
Chief Treatment Plant Operator
N
Revenue Manager
N
15
Distribution and Collections Systems Supervisor
E
$ 57,033
$ 74,143
$ 91,252
Police Officer I
N
Utility Infrastructure Inspector
N
16
Building Code Inspector III
N
S 59,884
$ 77,850
$ 95,815
City Clerk
N
Downtown Development Director
N
Police Officer II
N
Senior Accountant
N
Special Projects Manager
N
17
Police Officer III
N
$ 62,878
$ 81,742
$100,605
Senior Planner
E
Treatment Plant Superintendent
E
18
Deputy Finance Director
E
$ 66,022
$ 85,829
$105,636
Police Sergeant
N
Page 2 HR Wage Chart FY27 Proposed
Attachment B-1
Effective 818126
CITY OF DUNN
Wage Chart
Effective from 8/8/2026 to 06/30/2027
Minimum
Midpoint
Maximum
FLSA
Annual
Annual
Annual
Grade
JOB TITLE
Status
Salary
Salary
Salary
Treatment Plant Manager
E
19
Assistant Public Utilities Director
E
$ 69,324
$ 90,121
$110,918
Assistant Public Works Director
E
Human Resources Director
E.
20
Chief Building Code Inspector
E
$ 72,789
$ 94,627
$116,464
Parks & Recreation Director
E
Police Lieutenant
N
�21�
Collection and Distribution Manager "
E
$ 76,430
$ 99,359
$122,287
22
Planning Director
E
$ 80,252
$ 104,327
$128,402
Police Captain
E
23
Finance Director
E
$ 84,264
$ 109,543
$134,822
Project Manager
E
Public Utilities Director
E
Public Works Director -_^_•---------•
E
24
Deputy Police Chief
E
$ 88,476
$ 115,019
$141,562
25
$ 92,901
$120,771
$148,641
26 lPolico
Chief
E
$ 97,545
$ 126,809
$156,073
27
Assistant City Manager im
E
$ 102,423
$ 133,1S0
$163,877
28
$ 107,544
$139,808
$172,071
29
_
$ 112,921
$146,798
$180,674
30
$ 118,567
$ 154, 138
$189,709
E Exempt from the Wage and Hour provisions of the Fair Labor Standards Act (FLSA)
N Not Exempt from the Wage and Hour provisions of the Fair Labor Standards Act (FLSA)
Page 3 HR Wage Chart FY27 Proposed
Career Development Plan for Dunn Police Officers-
ENTRY
Attachment B-1
TITLE/RANK
PAY RATE
POLICE CADET
$40.532.00
BLET SPONSORSHIP
20 YEARS OF AGE MIN.
BACKGROUND INVESTIGATION
DRUG SCREENING
CITY OF DUNN REQUIREMENTS
NC OPERATORS LICENSE
ENTRY
BASED ON 2.5% INCREASE
STEP ONE
PAY RATE
POLICE OFFICER 1
$57,033.00
BLET GRADUATE
CITY OF DUNN REQUIREMENTS
BACKGROUND INVESTIGATION
INTERVIEW WITH CHIEF
ENTRY
$58,459.00
POI FOR ONE YEAR
SUCCESFUL COMPL. OF TRAINING
NO DISCIPLINARY ACTION 12 MO
GENERAL CERTIFICATION
STANDARDIZED FIELD SOBRIETY
CIT CERTIFICATION
MTOX CERTFICATION
BASED ON 5% INCREASE
STEP ONE
PAY RATE
POLICE OFFICER II
$59,884.00
COMPLETED TWO YEARS AS PO -I
160 HOURS TRAINING TO INCLUDE
40 HRS. COMM, SERVICE
40 HRS. TRAPP. ENFCMT. TRNG.
40 HRS. INVESTIGATIONS TRNG
40 HRS. LE TRAINING TOPIC
GENERAL L.E. CERT
STANDARD OR HIGHER EVAL.
NO STEP 2 OR HIGHER DISCIPLINARY
$62,878.00
FOR FOR ONE YEARS
NO DISCIPLINARY ACTION 12 MO
COMM. POLICING COURSE (40)
PARTICIPATE IN 4 COMM. EVENTS
STANDARD OR HIGHER EVAL.
OFFICER SURVIVAL 1(40)
MUST MEET ALL REQ. TO ADV TO PO II
TITLE/RANK
PAY RATE
lip I
Career Development Plan for Dunn Police Officers
BASED O
ENTRY STEP ONE
-a III
D ON 5% INCREASE
STEP TWO
POLICE OFFICER III
& INVESTIGATOR
$62,878.00
EL
POB FOR TWO YEARS
4 YRS. EXP. PLUS 2 YRS AS PO -II
280 HRS. TRAINING TO INCLUDE
40 FIRS, MANAG/SUPERVISOR
80 HRS.COMM. SERV. 40 AS PO -II
160 LAW ENFORCE. TOPIC
MEETS EXP. P.E. LAST 2 YRS.
OR EXCEEDS EXP. LAST YEAR
NO DISCIPLINARY ACTION 12 MO
ENTRY
$66,022.00
POIII FOR TWO YEARS
INTERMEDIATE LE CERT. OR
PROFESSIONAL CERTIFICATION
IRTRAFFIC, LEADERSHIP, CICP
PARTICIPATE IN 4 COMM. EVENTS
PERREVAL. EXCEEDS EXP.
NO DISCIPLINARY ACTION 12 MO
COMPLETED OS II
BASED ON 7% INCREASE
STEP ON E
MMNIIIIIIII���
STEP ONE FOR FOUR YEARS
80 FIRS SUPERVISORY TRAINING
IE: FIRST LINE SUPERVISION, FTO,
CREDIBLE LEADERSHIP
PERE EVAL.EXCEEDS EXP.
NO DISCIPLINARY ACTION 12 MO
BASED ON 7% INCREASE
STEP TWO
PAY RATE
SERGEANT
S75,589.00
PO III FOR TWO YRS OR EQUIV. EXP
r
`IR€MENT -,
SERGEANT FOR TWO YEARS
FOUR COMM EVENTS OR,
ONE APPROVED COMM PROJECT
MEETS EXP. P.E. LAST 2 YRS.
NO DISCIPLINARY ACTION 12 MO
120 FIRS SUPERVISORY TRAINING IN
MED RELAT. OR ADV SPEAK SKILL
BASED ON
STEP ONE
SERGEANT FOR FOUR YEARS
PERE EVAL.EXCEEDS EXP.
NO DISCIPLINARY ACTION 12 MO
ADVANCED LE CERT. OR
ASSOC. DEGREE OR HIGHER
40 FIRS ADD. SUPERVISORY TRNG
I STEP ONE FOR TWO YEARS
STEP TWO
INTERMEDIATE LE CERT
80 FIRS SUPERVISORY TRAINING
PROF. OR HIGHER P.E. LAST 2 YRS.
OR EXMPLARY P.E. LAST YEAR
NO STEP 2 OR HIGHER DISCIPLINARY
ENTRY
PAY RATE
LIEUTENANT
$72,789.00
SERGEANT FOR ONE YEAR
120 FIRS. MANGE/SUPVR. TRNG
INTERMEDIATE LE CERT OR,
ASSOC. DEGREE OR HIGHER
$77,884.00
LT. FOR TWO YEARS
200 FIRS SUPERVISORY TRAING
ASSOC. DEGREE OR HIGHER OR
ADVANCED LE CERTIFICATE
$83,336.00
LT. FOR FOUR YEARS
500 FIRS. SUPERVISORY TRAINING
OR MANAGEMENT TRAINING
ADVANCED LE CERTIFICATE AND/OR,
Career Development Plan for Dunn Police Officers
MEETS EXP. P.E. LAST 2 YRS. COMPLETED FEMA MMS 700 & 900
OR EXEMPLARY PE LAST YEAR SATISFACTORY PERF. EVAL
NO STEP 2 OR HIGHER DISCIPLINARY NO DISCIPLINARY ACTION 12 MO
BASED ON VACANCY OR POSITION ONE APPROVED COMM PROJECT
FOUR COMMUNITY EVENTS
BASED
ENTRY STEP ONE
-Attachment B-1
ASSOC. DEGREE OR HIGHER
NO DISCIPLINARY ACTION 12 MO
PERF. EVAL.EXCEEDS EXP.
STEP ONE FOR TWO YEARS
1 ON 7% INCREASE
STEP TWO
TITLE/RANK
PAY RATE
CAPTAIN
"0,252.00
$85,870.00
S91,a81.0C
RE ENT ,
SERVED AS LT. FORT%% O YEARS
ADVANCED L.E. CERT
EXECUTIVE LEADERSHIP COURSE
PERF. EVAL. EXCEEDS EXP.2 YRS
NO STEP 2 OR HIGHER DISPLNRY
BASED ON VACANCY OF POSITION
10 YRS FULL TIME LE EXP
LEAST 5 YRS SUPERVISORY EXP
ASSOC. DEGREE OR HIGHER
ENTRY
CAPTAIN FOR ONE YEAR
ONE APPROVED COMM PROJECT
FOUR COMMUNITY EVENTS
EVAL. EXCEDS. STAND, OR HIGHER
COMPLETED ICS 300 & 400
NO DISCIPLINARY ACTION 12 MO
BASED /
STEP ONE
RE EN
CAPTAIN FOR THREE YEARS
AOMP, FBI NAT, ACADEMY OR
SOUTHERN POLICE INSTITUTE OR
EQUILIVENT COURSES
NO DISCIPLINARY ACTION 12 MO
PERF. EVAL EXCEED EXP.
ASSOC. DEGREE OR HIGHER
COURSE WORK IN LE OR PA OR
RELATED FIELD, EXTENSIVE EXPER.
IN POLICE SERVICES AND
SUPERVISION EQUILIVENT TO
THE RANK OF CAPTAIN, OR
EQUILIVENT COMBINATION OF
EDUCATION AND EXPERIENCE
STEP ONE FOR TWO YEARS
1 ON 8% INCREASE
STEP TWO
PAY RATE
MAJOR
$88,47 G.00
$95, 554. c0
S 103,198.00
NT
NT
NT
APPOINTED BY CHIEF
SERVES AT PLEASURE OF CHIEF
SERVES IN ABSENCE OF CHIEF
RANK OF LIEUTENANT OR ABOVE
APPOINTEDBYCIIII I
SERVES AT PLEASURE OF CHIEF
SERVES IN ABSENCE OF CHIEF
MAJOR FOR ONE YEAR
APPOINTED BY CHIEF
SERVES AT PLEASURE OF CHIEF
SERVES IN ABSENCE OF CHIEF
MAJOR FOR TWO YEARS
FY 26-27
TITLE/RANK
Career Development Plan for Dunn Police Officers-AttachmentE-�
SATISFACTORY PERF. EVAL PERF.EVAL. EXCEEDS EXP.
BASED ON 10% INCREASE
ENTRY STEP ONE
ADVANCED LE CERTIFICATE
BACHELOR'S DEGREE OR HIGHER
AOMP, FBI NAT. ACADEMY OR
SOUTHERN POLICE INSTITUTE OR
EQUILIVENT COURSES
PAY RATE
PERF. EVAL.EXCEEDS EXP.
STEP ONE FOR TWO YEARS
BASED ON 10% INCREASE
CHIEF OF POLICE
$97,545.00
s107,300.00
51Ta,o30.00
APPOINTED BY CITY MANACiI k
APPOINTED BY CITY MANAGER
s
APPOINI kD BY CITY MANAGER
EDUCATION
CHIEF FOR ONE YEAR
CHIEF FOR TWO YEARS
EXPERIENCE
EDUCATION
EDUCATION
EXPERIENCE
EXPERIENCE
PERF.EVAL. EXCEEDS FAR
PERF. EVAL.EXCEEDS EXP.
STEP ONE FOR TWO YEARS
Effective August 8, 2026 for the fiscal year ending 6-30-2027.
Approved this iith day of August, 2026.
City Manager
Chief of Police
Finance Director
Human Resources Director
Mayor
William P. Elmore, Jr.
CITY OF Mayor Pro Tern
D UNN J. W Gaulden
Council Members
J. Wesley Sills
ONORTH C A R O L I N A Raquel McNeil
BillyTart
401 E Broad St . PO Box 1065 . Dunn, North Carolina 28335 plan Hargis
(910) 230-3500 • CityofDunn.org Dr. David L. Bradham
City Manager
Justin Hembree
ATTACHMENT C
FOR FY2026-27 VEHICLE AND EQUIPMENT PURCHASES
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUNN, UNDER GS 159-
13.2, THAT:
Section 1: The following vehicles and equipment are authorized for purchase in FY27
and capital project ordinances by fund will be established for the purchase and related funding:
Fund
Department
Vehicle
Budget
General
Police
5 Police Vehicles
$331,000
General
Public Works
Freightliner Leaf Truck
305,000
General/Wtr * P W & PU
Kubota KX057-5R3A mini excavator
90,000
Water
Public Utility
Ford F-450 Crew Cab
85,000
Sewer
Public Utility
Ford F-150 XL
44,177
General
Total
$855,177
*Equipment will be funded 50150 from the General Fund and Water Fund
Section 2. The total amount appropriated for the vehicles listed in Section 1 shall not
exceed $855,177 and will be funded with cash reserves or installment financing.
Section 3: Within five (5) days after this ordinance is adopted, the City Clerk shall file a
copy of this ordinance with the Finance Director.
Section 4: This capital project ordinance shall be effective August 11, 2026.
This the I1 `h day ofAugust, 2026.
Attest:
Melissa R. Matti
City Clerk
William P. Elmore, Jr.
Mayor
V&re communif 6Tins!
Mayor
William P. Elmore, Jr.
CITY OF Mayor Pro Tern
D UNN April Gaulden
Council Member;
1. Wesley Sills
® NORTH CAROLINA Raquel McNeil
Billy Tart
401 E Broad St . PO Box 1065 . Dunn, North Carolina 28335 Alan Hargis
(910) 230-3500 • CityofDunn.org Dr. David L. Bradham
City Manager
Justin Hembree
ATTACHMENT C-1
REIMBURSEMENT RESOLUTION FOR EQUIPMENT AND VEHICLES
WHEREAS, the City Council has adopted a resolution that authorizes the purchases of vehicles
and equipment for FY27 and as provided under federal tax law, to facilitate the City's use of
financing proceeds to restore its funds when the City makes capital expenditures prior to closing
on a lease/purchase installment financing.
BE IT RESOLVED by the City of Dunn City Council that:
Section 1. The equipment and vehicles budgeted for purchase in FY 2026-27 include the
following:
Fund
Department
Vehicle
Budge
General
Police
5 Police Vehicles
$331,000
General
Public Works
Freightliner Leaf Truck
305,000
GeneraVWtr * PW & PU
Kubota KX057-5R3A mini excavator
90,000
Water
Public Utility
Ford F-450 Crew Cab
85,000
Sewer
Public Utility
Ford F-150 XL
44,177
General
Total
$855,177
* Equipment will be funded 50150 from the General Fund and Water Fund
Section 2. The expected type of financing (which may be subject to change) for the above
equipment and vehicles is installment purchase financing as allowed in North Carolina General
Statutes Section 160A-20, or grant/loan financing acquired through the United States Department
of Agriculture.
Section 3. All or part of the funds that have been advanced, or may be advanced, from the
Capital Fund for the aforementioned items are intended to be reimbursed from the financing
proceeds up to an amount of $855,177.00.
Section 4. The adoption of this resolution is intended as a declaration of the City Council's
official intent to reimburse project expenditures from financing proceeds as needed.
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.
'l &re communii 6Tins!
Section 6: This resolution shall become effective August 11, 2026.
This the 11'h day ofAugust, 2026
William P. Elmore, Jr. - Mayor
Attest:
Melissa R. Matti - City Clerk
General Fund
-Various Budget Amendments
FY27 Proposed Budget Amendments
Department
Adopted
Amended
Mayor & Council
Expenditure
Salaries and Wages
Description of Amendment
FY27 Wage Adjustments
Budget Amendment
$ 49,775 $
2,490
Budget
$ 52,265
Mayor&Council
FICA/Medicare
FY27 Wage Adjustments
3,808
190
3,998
Mayor& Council
Worker's Comp Insurance
FY27 Wage Adjustments
39
5
44
Administration
Salaries and Wages
FY27 Wage Adjustments
388,587
20,454
409,041
Administration
Salaries -Part-time
FY27 Wage Adjustments
5,980
299
6,279
Administration
FICA/Medicare
FY27 Wage Adjustments
28,809
1,589
30,398
Administration
Employee Insurance
State Health Insurance Plan
53,809
(2,344)
51,465
Administration
Retirement/401K
FY27 Wage Adjustments
78,339
4,123
82,462
Administration
Worker's Comp Insurance
FY27 Wage Adjustments
394
12
406
Tourism
Salaries and Wages
FY27 Wage Adjustments
80,200
4,525
84,725
Tourism
Salaries -Part-time
FY27 Wage Adjustments
32,000
1,731
33,731
Tourism
FICA/Medicare
FY27 Wage Adjustments
7,448
480
7,928
Tourism
Employee Insurance
State Health Insurance Plan
12,800
(585)
12,215
Tourism
Retirement/401K
FY27 Wage Adjustments
16,168
912
17,080
Tourism
Worker's Comp Insurance
FY27 Wage Adjustments
93
2
95
Tourism
Tourism-Salary/Benefits Reimb
FY27 Wage Adjustments
(148,709)
(7,065)
(155,774)
Finance
Salaries and Wages
FY27 Wage Adjustments
160,391
8,799
169,190
Finance
Salaries -Part-time
FY27 Wage Adjustments
6,500
325
6,825
Finance
FICA/Medicare
FY27 Wage Adjustments
11,604
697
12,301
Finance
Employee Insurance
State Health Insurance Plan
25,055
(1,140)
23,915
Finance
Retirement/401K
FY27 Wage Adjustments
32,334
1,774
34,108
Finance
Worker's Comp Insurance
FY27 Wage Adjustments
140
3
143
City Hall
Salaries and Wages
FY27 Wage Adjustments
27,369
1,537
28,906
City Hall
FICA/Medicare
FY27 Wage Adjustments
1,703
118
1,821
City Hall
Employee Insurance
State Health Insurance Plan
8,773
(483)
8,290
City Hall
Retirement/401K
FY27 Wage Adjustments
5,517
310
5,827
City Hall
Worker's Comp Insurance
FY27 Wage Adjustments
518
8
526
Non Departmental
Salaries and Wages
FY27 Wage Adjustments
30,000
1,697
31,697
Non Departmental
FICA/Medicare
FY27 Wage Adjustments
2,295
130
2,425
Non Departmental
Retirement/401K
FY27 Wage Adjustments
6,768
383
7,151
Police
Salaries and Wages
FY27 Wage Adjustments
3,041,087
171,452
3,212,539
Police
Salaries -Overtime
FY27 Wage Adjustments
102,000
5,769
107,769
Police
Salaries -Part-time
FY27 Wage Adjustments
20,000
1,000
21,000
FY27 Proposed Budget Amendments
Adopted
Amended
Department
Expenditure
Description of Amendment
Budget
Amendment
Budget
Police
FICA/Medicare
FY27 Wage Adjustments
229,218
13,634
242,852
Police
Employee Insurance
State Health Insurance Plan
545,835
(26,175)
519,660
Police
Retirement/401K
FY27 Wage Adjustments
691,381
38,988
730,369
Police
Worker's Comp Insurance
FY27 Wage Adjustments
72,927
1,243
74,170
Animal Control
Salaries and Wages
FY27 Wage Adjustments
83,351
4,698
88,049
Animal Control
Salaries -Overtime
FY27 Wage Adjustments
3,400
192
3,592
AnimatControl
Salaries -Part-time
FY27 Wage Adjustments
23,000
1,150
24,150
Animal Control
FICA/Medicare
FY27 Wage Adjustments
8,060
461
8,521
Animal Control
Employee Insurance
State Health Insurance Plan
23,780
(1,267)
22,513
Animal Control
Retirement/401K
FY27 Wage Adjustments
17,489
988
18,477
Animal Control
Worker's Comp Insurance
FY27 Wage Adjustments
1,928
29
1,957
Planning & Inspections
Salaries and Wages
FY27 Wage Adjustments
449,449
28,176
477,625
Planning & Inspections
FICA/Medicare
FY27 Wage Adjustments
32,815
2,156
34,971
Planning & Inspections
Employee Insurance
State Health Insurance Plan
82,974
(4,121)
78,853
Planning & Inspections
Retirement/401K
FY27 Wage Adjustments
90,609
5,680
96,289
Planning & Inspections
Worker's Comp Insurance
FY27 Wage Adjustments
4,637
180
4,817
Pubtic Works
Salaries and Wages
FY27 Wage Adjustments
721,586
84,827
806,413
Public Works
Salaries -Overtime
FY27 Wage Adjustments
20,000
1,131
21,131
Public Works
Salaries -Part-time
FY27 Wage Adjustments
5,000
250
5,250
Public Works
Allocated toOther Depts
FY27 Wage Adjustments
(38,000)
(2,149)
(40,149)
Public Works
FICA/Medicare
FY27 Wage Adjustments
52,495
3,484
55,979
Public Works
Employee Insurance
State Health Insurance Plan
189,338
(10,063)
179,275
Public Works
Retirement/401K
FY27 Wage Adjustments
149,609
9,130
158,739
Public Works
Worker's Comp Insurance
FY27 Wage Adjustments
26,028
2,097
28,125
Public Works Garage
Salaries and Wages
FY27 Wage Adjustments
165,664
11,526
177,190
Public Works Garage
Salaries -Overtime
FY27 Wage Adjustments
1,300
74
1,374
Public Works Garage
FICA/Medicare
FY27 Wage Adjustments
11,970
866
12,856
Public Works Garage
Employee Insurance
State Health Insurance Plan
37,560
(1,860)
35,700
Public Works Garage
Retirement/401K
FY27 Wage Adjustments
33,659
2,340
35,999
Public Works Garage
Worker's Comp Insurance
FY27 Wage Adjustments
2,552
74
2,626
Parks & Recreation
Salaries and Wages
FY27 Wage Adjustments
345,661
20,581
366,242
Parks & Recreation
Salaries -Overtime
FY27 Wage Adjustments
15,000
84B
15,848
Parks & Recreation
Salaries -Part-time
FY27 Wage Adjustments
58,000
2,900
60,900
Parks & Recreation
FICA/Medicare
FY27 Wage Adjustments
31,307
1,861
33,168
Parks & Recreation
Employee Insurance
State Health Insurance Plan
92,507
(4,831)
87,676
Parks & Recreation
Retirement/401K
FY27 Wage Adjustments
72,709
4,321
77,030
FY27 Proposed Budget
Amendments
Department
Expenditure
Parks & Recreation
Worker's Comp Insurance
Senior Center
Salaries and Wages
Senior Center
Salaries -Overtime
Senior Center
Salaries -Part-time
Senior Center
FICA/Medicare
Senior Center
Employee Insurance
Senior Center
Retirement/401K
Senior Center
Worker's Comp Insurance
Cemetery
Salaries and Wages
Cemetery
Salaries -Overtime
Cemetery
FICA/Medicare
Cemetery
Employee Insurance
Cemetery
Retirement/401K
Cemetery
Worker's Comp Insurance
Mayor & Council
Membership Dues
Non Departmental
Economic Contributions
Non Departmental
Operating Transfer to Capital Projs
Non Departmental
Operating Transfer to Capital Projs
Park and Recreation
Capital Outlay
Police
Non -Capital Equipment
Police
Non -Capital Equipment
Police
Non -Capital Equipment
Police
Non -Capital Equipment
Public Works
Capital Outlay
Public Works
Capital Outlay
Public Works
Sidewalk Construction
Public Works Garage
Capital Outlay
Non Departmental
Reserve for Contingency
Total
Description of Amendment
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
State Health Insurance Plan
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
State Health Insurance Plan
FY27 Wage Adjustments
FY27 Wage Adjustments
Contribution to Harnett Economic Development Corp
StewartTheatre contribution
Codrington Park Project
Funding for mini excavator
One HVAC unit for Community Building
Eight rifles (Fifteen in the adopted budget)
Two computers (Five in the adopted budget)
Three flock cameras
One radar units (one in the adopted budget)
7' x 22' Trailer
Mower Max grader attachment
Sidewalk repair/replacement
20' floor tilt 10ktrailer
Items listed above
Total
Adopted
Amended
Budget Amendment
Budget
7,569
198
7,767
47,011
2,654
49,665
800
45
845
17,000
850
17,850
4,898
272
5,170
12,022
(628)
11,394
9,639
543
10,182
1,310
10
1,320
234,339
13,133
247,472
12,500
707
13,207
17,945
1,060
19,005
63,022
(3,306)
59,716
49,762
2,792
52,554
7,566
382
7,948
195
16,250
16,445
-
20,000
20,000
-
175,000
175,000
-
45,000
45,000
-
26,000
26,000
25,935
14,000
39,935
13,500
5,400
18,900
-
9,000
9,000
3,000
3,000
6,000
-
10,000
10,000
-
14,000
14,000
25,000
10,000
35,000
10,319
5,910
16,229
1,354,572
(784,908)
569,664
$ 10,364,296 $
$ 10,364,296
`Water. Fund-Various:Bu_dgetAm_endments
Adopted Amended
Department Description Description Budget Amendment Budge
WaterAdmin Salaries and Wages FY27 Wage Adjustments $ 137,646 $ 7,325 $ 144,971
WaterAdmin Salaries -Part-time FY27 Wage Adjustments 1,472 74 1,546
FY27 Proposed Budget Amendments
Department
Expenditure
WaterAdmin
FICA/Medicare
WaterAdmin
Employee Insurance
WaterAdmin
Retirement/401K
WaterAdmin
Worker's Comp Insurance
Water Finance
Salaries and Wages
Water Finance
Salaries -Part-time
Water Finance
FICA/Medicare
Water Finance
Employee Insurance
Water Finance
Retirement/401K
Water Finance
Worker's Comp Insurance
Water Distributions
Salaries and Wages
Water Distributions
Overtime
Water Distributions
FICA/Medicare
Water Distributions
Employee Insurance
Water Distributions
Retirement/401K
Water Distributions
Worker's Comp Insurance
WTP
Salaries and Wages
WTP
Overtime
WTP
FICA/Medicare
WTP
Employee Insurance
WTP
Retirement/401K
WTP
Worker's Comp Insurance
Administration
Membership Dues
Administration
Non -Capital Equipment
Administration
Operating Transfers to Capital Projects
Administration
OperatingTransfers to Capital Projects
Total
Description of Amendment
FY27 Wage Adjustments
State Health Insurance Plan
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
State Health Insurance Plan
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
State Health Insurance Plan
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
State Health Insurance Plan
FY27 Wage Adjustments
FY27 Wage Adjustments
Contribution to Harnett Economic Development Corp
Three computer laptops
Funding for mini excavator & Ford F-450
Items listed above
Total
Adopted Amended
10,081
558
10,639
18,421
(819)
17,602
24,924
1,332
26,256
304
7
311
106,879
5,955
112,834
13,600
680
14,280
8,707
508
9,215
24,017
(1,225)
22,792
21,546
1,202
22,748
99
1
100
446,761
29,461
476,222
20,000
1,131
21,131
32,838
2,342
35,180
117,222
(6,226)
11D,996
94,100
6,170
10D,270
8,600
156
8,756
526,541
18,222
544,763
60,000
3,394
63,394
44,084
1,652
45,736
101,485
(4,730)
96,755
118,248
4,355
122,603
10,597
284
10,881
4,580
3,500
8,080
2,800
2,600
5,400
696,526
130,000
826,526
826,526
(207,909)
618,617
$ 3,478,604 $
-
$ 3,478,604
Seweffund-Various BudgetAmendments,,
Adopted
Amended
Department
Description
Description
Budget
Amendment
Budget
SewerAdmin
Salaries and Wages
FY27WageAdjustments
$ 162,430
$ 8,639
$ 171,069
SewerAdmin
Salaries -Part-time
FY27 Wage Adjustments
1,748
87
1,835
SewerAdmin
FICA/Medicare
FY27 Wage Adjustments
12,184
676
12,860
SewerAdmin
Employee Insurance
State Health Insurance Plan
21,238
(937)
20,301
FY27 Proposed Budget Amendments
Department
Expenditure
SewerAdmin
Retirement/401K
SewerAdmin
Worker's Comp Insurance
Sewer Finance
Salaries and Wages
Sewer Finance
Salaries -Part-time
Sewer Finance
FICA/Medicare
Sewer Finance
Employee Insurance
Sewer Finance
Retirement/401K
Sewer Finance
Worker's Comp Insurance
Sewer Collections
Salaries and Wages
SewerCollections
Overtime
Sewer Collections
FICA/Medicare
Sewer Collections
Employee Insurance
Sewer Collections
Retirement/401K
Sewer Collections
Worker's Comp Insurance
WWTP
Salaries and Wages
W WTP
Overtime
WWTP
FICA/Medicare
WWTP
Employee Insurance
W WTP
Reti rement/401K
WWTP
Worker's Comp Insurance
Administration
Membership Dues
Administration
Non -Capital Equipment
Administration
Operating Transfers to Capital Projects
Sewer Collections
Capital Improvement Projects
Total
Description of Amendment
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
State Health Insurance Plan
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
State Health Insurance Plan
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
FY27 Wage Adjustments
State Health Insurance Plan
FY27 Wage Adjustments
FY27 Wage Adjustments
Contribution to Harnett Economic Development Corp
Three computer laptops
Funding for Ford F-150
Items listed above
Total
Adopted
Amended
Budget
Amendment
Budget
30,168
1,616
31,784
344
10
354
114,281
6,363
120,644
13,900
695
14,595
9,243
540
9,783
25,175
(1,277)
23,898
23,041
1,282
24,323
105
2
107
401,390
22,601
423,991
13,000
735
13,735
30,755
1,785
32,540
99,208
(5,345)
93,863
83,540
4,705
88,245
7,844
107
7,951
504,238
28,295
532,533
60,000
3,394
63,394
39,167
2,425
41,592
111,119
(5,456)
105,663
113,751
6,388
120,139
11,675
303
11,978
6,868
5,250
12,118
4,200
3,400
7,600
-
44,177
44,177
165,473
(130,460)
35,013
$ 2,066,085
$
$ 2,066,085
Stormwater 'Fund `- Various Budget Amendments
Adopted
Amended
Department
Description
Description
Budget
Amendment
Budget
Stormwater
Salaries and Wages
FY27 Wage Adjustments
$ 5,894
$ 333
$ 6,227
Stormwater
Personnel Costs fr Other Depts
FY27 Wage Adjustments
38,000
2,149
40,149
Stormwater
FICA/Medicare
FY27 Wage Adjustments
3,347
189
3,536
Stormwater
Employee Insurance
State Health Insurance Plan
1,230
(62)
1,168
Stormwater
Retirement/401K
FY27 Wage Adjustments
8,850
499
9,349
Stormwater
Worker's Comp Insurance
FY27 Wage Adjustments
1,483
63
1,546
FY27 Proposed Budget Amendments
Adopted
Amended
Department
Expenditure
Description of Amendment
Budget
Amendment
Budget
Stormwater
Reserve for Contingency
Reserve for Contingency
388,969
(3,171)
385,798
Total
Total
$
447,773
$
-
$
447,773
Govt'l=Capital Projects Fund-Various'BudgetAnnendments.,
Adopted
Amended
Department
Description
Description
Budget
Amendment
Budget
Governmental
Borrowed Funds (Revenue)
5Police Cars -5year Loan
$
$
(331,000)
$
(331,000)
Governmental
Borrowed Funds (Revenue)
Freightliner Leaf Truck -7year loan
(305,000)
(305,000)
Governmental
OperTrffrGeneral Fund
KubotaKX057-5R3A mini excavator (50%)
(45,000)
(45,000)
Police
Capital Outlay -Police Veh & Equip
5 Police Cars
331,000
331,000
Public Works
Capital Outlay-PW Veh & Equip
Freightliner Leaf Truck
305,000
305,000
Public Works
Capital Outlay-PW Veh & Equip
Kubota KX057-5113A mini excavator(50%)
45,000
45,000
Total
Total
$
$
$
Water apital Projects.Fund
-Various Budget,Amendmentg -
Adopted
Amended
Department
Description
Description
Budget
Amendment
Budget
Water Capital Project
OperTrffrWater Fund
Kubota KX057-5R3A mini excavator (50%)
$
-
$
(45,000)
$
(45,000)
Water Capital Project
OperTrf fr Water Fund
Ford F-450 Crew Cab
-
(85,000)
(85,000)
Water Capital Project
Capital Outlay -Water Ops Veh & Equip
Kubota KX057-5R3A mini excavator (50%)
-
45,000
45,000
Water Capital Project
Capital Outlay -Water Ops Veh & Equip
Ford F-450 Crew Cab
-
85,000
85,000
Total
Total
$
-
$
-
$
Sewer.:CapitallProjects'Fund-Nario_us Budget Amendments,
Adopted
Amended
Department
Description
Description
Budget
Amendment
Budget
Sewer Capital Project
Oper Trf fr Sewer Fund
Ford F-150XL
$
-
$
(44,177)
$
(44,177)
Sewer Capital Project
Capital Outlay-WWTP Veh & Equip
Ford F-150XL
-
44,177
44,177
Total
Total
$
-
$
-
$
CITY OF
DUNN
® N )TH CAROLINA
XACAu im coKbegua/
Work Session, August 11, 2026
Agenda Item(s):
Presenter(s):
Responsible Staff:
Action Item:
Attachment(s):
Credit Card Fees Discussion
Cary McNallan, Finance Director
Cary McNallan, Finance Director
Yes
1) Power Point presentation
Background
For fiscal year 2026, the City of Dunn received approximately $4.4M in revenues via credit or
debit card transactions. Of those transactions, the City paid $106,722 in credit card
processing fees. Eighty-five percent, or $90,9025, of those fees were related to the
water/sewer/garbage bills. In FY24, total credit card fee expenses totaled $72,180 for all funds.
In two (2) years, these fees have increased 50%. Part of this increase is related to the increase
in water/sewer/garbage rates ... the higher the utility bill, the higher the credit card fee.
At this meeting, staff will present some information regarding credit cards and associated fees.
The intent is to initiate discussions on the pros and cons of passing these fees onto the
customers or continue to have the City pay this cost.
Staff Recommendation(s)
Request that the City Council provide directions on whether staff should gather additional
information regarding the implementation procedures to pass the credit card fee onto the
customers or to continue paying these fees from City budgets.
Budgetlmpact
If the City Council implements a procedure whereas the cost of credit card transactions is to
be paid by the customers, then the City's expenditures are estimated to decrease by $9,000
per month. If there is no change in the current procedure, then there is zero impact or change
to the budget.
Suggested Motions)
None.
Page 1 of 1
CITY OF
DUNN
�W,P
JFINANCE DEPARTMEN`i
Credit Card Fees
August 11, 2026
redit Car
Department
Finance
Police
Animal Control
Planning & Inspections
Parks and Recreation
Fees by Coll
CC
Approx.
Average
Fees
Sales
CC Fee %
$ 90, 925.64
$ 3, 890, 916.16
2.337%
278.14
1,041.72
3.862%
224.46
5,812.54
3.862%
13, 423.44
495, 786.56
2.708%
1,870.56
57, 815.88
3.235%
$106,722.24
$ 4,451,372.86
Nearly 100% of the Finance transactions are related to the water/sewer/garbage bills
Pros of Charging Credit Card Fees to the Customer:
• Offsets processing costs
• Passing card fees to customers helps the City recover the expenses charged by
payment processors.
• Improves revenue margins
• Because the City is not absorbing the processing fees, more of each sale stays as
profit.
• Encourages lower -cost payment methods
• Customers may choose options like cash, check, or bank drafts when they see a
surcharge, which reduces overall payment -processing expenses.
• Creates more predictable expenses
• When recovery fees offset processor charges, the cost of accepting payments becomes
easier to forecast and manage.
Cons of Charging Credit Card Fees to the Customer:
• More cash on hand increases responsibility for staff.
• Encouraging cash payments means cashiers must manage larger sums of money,
which increases accountability and requires careful oversight.
• Higher risk of over/short cash drawers and NSF checks.
• Handling more cash can lead to discrepancies at the end of the day, creating stress
for employees & potential financial inaccuracies. Increased NSF checks due to volume.
• Reduces customer convenience.
• Many customers prefer to pay by card and may not carry cash. Surcharges can feel
like an inconvenience or an extra barrier to completing a purchase.
• Potential negative customer perception.
• In periods of rate or price increases, adding card fees may frustrate customers.
• Administrative and compliance complexity.
• Local governments must properly disclose fees, update POS systems, configure
receipts, and stay compliant with card -network rules and state regulations. This adds
• Planning Department Fees
• Building and development fees can often times be thousands of dollars.
• Set a dollar limit on amounts eligible for credit card payments.
• The "penny shortage"
• Banks are running short of pennies. More cash transactions could result in more
issues with making change.
• More customers at the counters
• Customers that previously paid with credit cards online may elect to pay at the
counter. Finance is already seeing an increase in counter customers. Additional staff
may be needed in the future.
• Fees vs. Points
• Customers weigh the options of using credit cards to earn points vs paying fees.
• Other Cities and Counties
• Some governments have a cashless policy... only checks and credit cards accepted.
Business Listing
Customer Pa s Fee Business Pis Fee
Arthur's Pizza • Ay Wey Mexican Kitchen
Coffee on Broad • Duke Energy (non -business accts)
Fayetteville PWC (online pymts) • Harnett County & Harnett
Harnett County (online pymts) Regional Water (in person)
Heath's Steakhouse • Lowes
Johnston Cnty PU (online pymts) Walmart
Rumble Pizza • Western Sizzlin
Next Steps
• City Council discussion and directions for staff.
1) Continue to pay for credit card fees
OR
2) Pass along the credit card fees to the customers.
• If Option 2 is chosen, the implementation time could take 3-4
months.
CITY OF
� DUNN
INANCE DEPARTMENT
Questions? Comments
V
CITY OF
DUNN
NORTH CAROLINA
Me.-e, a"tftR4 6Vlswl
Announcements,,
• The next Regular Session of the Dunn City
Council is scheduled for Tuesday, August 25th at
6:30 p.m.
• August 27th - State of the City Business Impact
Luncheon will be held at the Dunn Community
Building from 11:30 a.m. to 1 p.m.
• The next Work Session of the Dunn City Council
is scheduled for Tuesday, September 8th at 6:30
p.m.
a