05172011SP139
MINUTES
CITY OF DUNN
DUNN, NORTH CAROLINA
The City Council of the City of Dunn held a Special Call Meeting/Budget Work Session on Tuesday,
May 17, 2011, at 8:30 a.m. in the Dunn Municipal Building. Present was Mayor Oscar N. Harris,
Mayor Pro Tern N. Carnell Robinson, Council Members Buddy Maness, Bryan Galbreath, Billy
Tart, Chuck Turnage and Joey Tart. Also present was City Manager Ronnie Autry, Finance
Director Mark Stephens, Planning and Marketing Director Steven Neuschafer, Chief Building
Inspector Mike Blackmon, Recreation Director Perry Hudson, Police Chief B.P. Jones, Public Works
Director Billy Addison, Public Utilities Director Dean Gaster, Librarian Mike Williams, City
Attorney P. Tilghman Pope, and City Clerk Debra West.
INVOCATION
Mayor Harris opened the meeting at 8:43 a.m. and gave the invocation. Afterwards the Pledge of
Allegiance was repeated.
AGENDA ADJUSTMENT AND APPROVAL
Motion by Mayor Pro Tem Robinson and seconded by Council Member Galbreath to adopt the May 17,
2011 meeting agenda with changes, if any, as listed below.
Items Added to the Agenda:
• none
Agenda Items Removed:
• none
Motion unanimously approved.
ITEMS FOR DISCUSSION AND /OR DECISION
Update FY 10 -11 Budget
Manager Autry provided the following General Fund Expenditures that were not budgeted in FY 10 -11:
• PARTF Grant application - $23,000
• Fuel over -run - $25,000
• Sales tax short -fall - $75,000
• PAL complex project to hire consultant - $38,000
• Additional police cars purchased for drug operation on I -95 - $44,000
With these additional expenditures absorbed, it is projected that the City will come under budget and will
not require any fund balance appropriations.
Manager Autry explained the following Water Fund Expenditures:
• Bridge replacement at the Water Plant came under projected cost for FY 10 -11.
• Manager Autry stated that he projects a surplus of $165,000 from five line items that were under
budget; however, he explained that there is a project they have been working with the County over
the past five to ten years to take over the water line on US 42least of I -95 on Warren Road to
Spring Branch Road and Highway 55 down to Core Road. The City supplies water to this corridor;
however, portions of it are technically owned by the County. The City's portion of the project
cost to purchase the water meter reducing valve is $35,000 and the meter would have to be
relocated to the intersection of Warren Road and Spring Branch Road. The City will pick up
approximately twenty county customers along Warren Road, Core Road and Highway 55. The
formula to purchase the water lines from the County is approximately $19,000. Approximately
$55,000 of the $165,000 could be spent by June 30 if they can purchase this line. Twenty
customers could add $12,000 per year in revenue. It was suggested that a memorandum of
agreement be prepared and signed by both the City and County.
FY 11 -12 Budget
Mayor Harris pointed out that there is only .8% difference between the proposed FY 11 -12 budget and the
previous FY 10 -11 budget. He reminded the Council that the City has experienced a $75,000 reduction in
sales tax in the past two years and economists for the State of North Carolina are not sure if they have
reached the bottom yet.
Mayor Harris yielded to Manager Autry to summarize the budget.
Manager Autry stated that the proposed FY 2011 -2012 budget is conservative with just operating expenses.
Revenues: General
• Ad Valorem Taxes: Figure is based on an approximate tax base of $695,000,000 with the tax rate
of .48 per $100 valuation at a 98.50% collection rate.
• The majority of the state revenues have been projected to remain as is or slightly less than this
year's budget.
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Mayor Harris stated that the proposed FY 11 -12 budget will be placed on the June 14 Council agenda.
10:19 a.m. —A motion was made by Council Member Maness and seconded by Mayor Pro Tem Robinson
to excuse Council Member Billy Tart from the remainder of the meeting. Motion unanimously approved.
Proposed Fee Schedule for
FY 11 -12
The proposed fee schedule was presented to the Council. It was discussed to erect signage at the parks with
park rules. A modification to the rental housing code will be proposed at the June meeting.
Set Public Hearing Date
June 14, 2011
Rental Housing Code Amendments
Motion by Council Member Joey Tart and seconded by Council Member Turnage to set a Public Hearing
date for June 14, 2011 for proposed rental housing code amendments. Motion unanimously approved.
Closed Session
City Attorney Pope advised the Council that they need to hold a brief closed session to instruct the City
Manager on the terms of a possible contract negotiation and to preserve the attorney client privilege.
10:37 am - Motion by Council Member Galbreath and seconded by Council Member Maness to enter
closed session based on the recommendation of the City Attorney pursuant to N.C.G.S. 143 - 318.11 (a) (3).
Motion unanimously approved.
11:19 am — Closed Session ended.
Motion by Council Member Maness and seconded by Council Member Galbreath to approve the closed
session minutes as recorded by City Attorney Pope. Motion unanimously approved.
With no further business to discuss, a motion was made by Council Member Galbreath and seconded by
Council Member Maness to adjourn the meeting at 11:20 am. Motion unanimously approved.
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Attest: = •, SEAL
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Debra G. West
City Clerk
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Oscar N. Harris
Mayor